Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 1451853955
Total Pages : 39 pages
Book Rating : 4.57/5 ( download)
Book Synopsis Managing Risks in Financial Market Development by : International Monetary Fund
Download or read book Managing Risks in Financial Market Development written by International Monetary Fund and published by International Monetary Fund. This book was released on 2003-06-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper proposes an integrated and risk-based approach to the sequencing and coordination of reforms to develop domestic financial markets. The paper argues that there is a hierarchy of financial markets that reflects the complexity of risks in each market and the interlinkages among markets. On the basis of this hierarchy, a sequencing of market development and risk-mitigation measures is proposed to minimize both macroeconomic and financial risks. Capital account opening can complement (but not substitute for) domestic institutional and market reforms to support the growth of local financial markets. The paper also argues that domestic institutional investors are critical to market development and risk mitigation.