Weighing up the costs and benefits of economic interdependence in a finance-driven world from a development perspective, this book argues that globalization, understood and promoted as absolute freedom for all forms of capital, has been oversold to the Global South, and that the South should be as selective about globalization as the North, rebalance domestic and external sources of growth, and better manage integration into unstable international finance.

Liberalization, Financial Instability and Economic Development brings together a range of essays from Y lmaz Akyuz s recent work, refuting the myth that emerging economies have now successfully decoupled from the North and have become new engines of growth. The book challenges the orthodoxy on the link between financial deepening and economic growth, as well as the relationship between the efficiency of financial markets and the benefits of liberalization. Rather, Akyuz s work urges developing countries to use all possible tools to control capital flows and asset bubbles in order to prevent financial fragility and crises, and recommends regional policy options while recognizing the challenges posed by the institutional structures already in place."

Weighing up the costs and benefits of economic interdependence in a finance-driven world from a development perspective, this book argues that globalization, understood and promoted as absolute freedom for all forms of capital, has been oversold to the Global South, and that the South should be as selective about globalization as the North, rebalance domestic and external sources of growth, and better manage integration into unstable international finance.

Liberalization, Financial Instability and Economic Development brings together a range of essays from Y lmaz Akyuz s recent work, refuting the myth that emerging economies have now successfully decoupled from the North and have become new engines of growth. The book challenges the orthodoxy on the link between financial deepening and economic growth, as well as the relationship between the efficiency of financial markets and the benefits of liberalization. Rather, Akyuz s work urges developing countries to use all possible tools to control capital flows and asset bubbles in order to prevent financial fragility and crises, and recommends regional policy options while recognizing the challenges posed by the institutional structures already in place."

This collection of papers challenges the conventional view of East Asian development driven by open and efficient markets and suggests that considerable diversity both at the institutional level and in policy approaches lies behind the region's rapid economic growth.

This book is a major contribution exploring the policy options available for developing and emerging economies in response to the global economic crises. Written by a highly respected development economist, the book gives a clear-eyed account of the issues particular to these countries and critically evaluates different policy approaches, including reforms in financial, monetary and trade policies. Informed by deep scholarship as well as practical experience, Yilmaz Akyuz draws on empirical data, historical context and theoretical expertise, with special attention paid to issues such as the role of the International Monetary Fund and China. The Financial Crisis and the Global South is a landmark book that will be of interest to practitioners, scholars, theorists and students of economics and development studies.

Starting in the early 1990s many emerging and developing economies (EDEs) liberalized their capital accounts, allowing greater freedom for international lenders and investors to enter their markets as well as for their residents to borrow and invest in international financial markets. Despite recurrent crises, liberalization has continued and in fact accelerated in the new millennium. Integration has been greatly facilitated by progressively looser monetary policy in the United States, notably the policies that culminated in debt crises in the United States and Europe and the ultra-easy monetary policy adopted in response. Not only have their traditional cross-border linkages been deepened and external balance sheets expanded rapidly, but also foreign presence in their domestic financial markets and the presence of their nationals in foreign markets have reached unprecedented levels. As a result new channels have emerged for the transmission of financial shocks from global boom-bust cycles. Almost all EDEs are now vulnerable irrespective of their balance-of-payments, external debt, net foreign assets and international reserve positions although these play an important role in the way such shocks could impinge on them. This is a matter for concern since the multilateral system still lacks mechanisms for orderly resolution of financial crises with international dimensions. Playing with Fire provides an empirical account of deeper integration of EDEs into the global financial system and discusses its implications for stability and growth, focusing on the role of policies in the new millennium in both EDEs and the United States and Europe.