Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles

The views on financial liberalization are quite conflictive. Many argue that it triggers financial bubbles and crises. Others claim that financial liberalization allows markets to function properly and capital to move to its most profitable destination. The empirical evidence on these effects is not...

Full description

Bibliographic Details
Main Authors:	Kaminsky, Graciela Laura, Schmukler, Sergio L.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Business Fluctuations Cycles E320 Current Account Adjustment Short-term Capital Movements F320 Information and Market Efficiency Event Studies G140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160
Online Access:	http://hdl.handle.net/10986/5893

id	okr-10986-5893
recordtype	oai_dc
spelling	okr-10986-58932021-04-23T14:02:23Z Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles Kaminsky, Graciela Laura Schmukler, Sergio L. Business Fluctuations Cycles E320 Current Account Adjustment Short-term Capital Movements F320 Information and Market Efficiency Event Studies G140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 The views on financial liberalization are quite conflictive. Many argue that it triggers financial bubbles and crises. Others claim that financial liberalization allows markets to function properly and capital to move to its most profitable destination. The empirical evidence on these effects is not robust. This paper constructs a new comprehensive chronology of financial liberalization and shows that a key reason for the inconclusive evidence is that the effects of liberalization are time-varying. Financial liberalization is followed by large booms and busts only in the short run. In the long run institutions improve and financial markets tend to stabilize. 2012-03-30T07:35:03Z 2012-03-30T07:35:03Z 2008 Journal Article Review of Finance 15723097 http://hdl.handle.net/10986/5893 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Business Fluctuations Cycles E320 Current Account Adjustment Short-term Capital Movements F320 Information and Market Efficiency Event Studies G140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160
spellingShingle	Business Fluctuations Cycles E320 Current Account Adjustment Short-term Capital Movements F320 Information and Market Efficiency Event Studies G140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Kaminsky, Graciela Laura Schmukler, Sergio L. Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The views on financial liberalization are quite conflictive. Many argue that it triggers financial bubbles and crises. Others claim that financial liberalization allows markets to function properly and capital to move to its most profitable destination. The empirical evidence on these effects is not robust. This paper constructs a new comprehensive chronology of financial liberalization and shows that a key reason for the inconclusive evidence is that the effects of liberalization are time-varying. Financial liberalization is followed by large booms and busts only in the short run. In the long run institutions improve and financial markets tend to stabilize.
format	Journal Article
author	Kaminsky, Graciela Laura Schmukler, Sergio L.
author_facet	Kaminsky, Graciela Laura Schmukler, Sergio L.
author_sort	Kaminsky, Graciela Laura
title	Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles
title_short	Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles
title_full	Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles
title_fullStr	Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles
title_full_unstemmed	Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles
title_sort	short-run pain, long-run gain: financial liberalization and stock market cycles
publishDate	2012
url	http://hdl.handle.net/10986/5893
_version_	1764396684978159616

Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles

Similar Items