TY  - BOOK
AU  - Terrones,Marco
AU  - Kose,Ayhan
AU  - Prasad,Eswar
AU  - Terrones,Marco
TI  - Financial Integration and Macroeconomic Volatility
T2  - IMF Working Papers; Working Paper
SN  - 1451846991 :
SN  - 1018-5941
PY  - 2003///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Capital Flows
KW  - imf
KW  - Financial Aspects of Economic Integration
KW  - Financial Globalization
KW  - Financial Integration
KW  - Income and Consumption Volatility
KW  - International Policy Coordination and Transmission
KW  - Burkina Faso
KW  - Ecuador
KW  - Hong Kong Special Administrative Region of China
KW  - Panama
KW  - United States
N2  - This paper examines the impact of international financial integration on macroeconomic volatility in a large group of industrial and developing economies over the period 1960-99. We report two major results: First, while the volatility of output growth has, on average, declined in the 1990s relative to the three preceding decades, we also document that, on average, the volatility of consumption growth relative to that of income growth has increased for more financially integrated developing economies in the 1990s. Second, increasing financial openness is associated with rising relative volatility of consumption, but only up to a certain threshold. The benefits of financial integration in terms of improved risk-sharing and consumption-smoothing possibilities appear to accrue only beyond this threshold
UR  - http://elibrary.imf.org/view/IMF001/02358-9781451846997/02358-9781451846997/02358-9781451846997.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451846997
ER  -