Book contents
- A Great Deal of Ruin
- A Great Deal of Ruin
- Copyright page
- Contents
- Tables
- Preface
- I Introduction
- Part I Financial Crises
- Part II Five Case Studies
- Part III Lessons
- 8 Markets Do Not Self-Regulate
- 9 Shadow Banks are Banks
- 10 Banks Need More Capital, Less Debt
- 11 Monetary Policy Does Not Always Work
- 12 Fiscal Multipliers Are Larger Than Expected
- 13 Monetary Integration Requires Fiscal Integration
- 14 Open Capital Markets Can Be Dangerous
- 15 Not All Debt Is Created Equal
- Conclusion
- Abbreviations and Acronyms
- Bibliography
- Index
14 - Open Capital Markets Can Be Dangerous
from Part III - Lessons
Published online by Cambridge University Press: 05 August 2019
- A Great Deal of Ruin
- A Great Deal of Ruin
- Copyright page
- Contents
- Tables
- Preface
- I Introduction
- Part I Financial Crises
- Part II Five Case Studies
- Part III Lessons
- 8 Markets Do Not Self-Regulate
- 9 Shadow Banks are Banks
- 10 Banks Need More Capital, Less Debt
- 11 Monetary Policy Does Not Always Work
- 12 Fiscal Multipliers Are Larger Than Expected
- 13 Monetary Integration Requires Fiscal Integration
- 14 Open Capital Markets Can Be Dangerous
- 15 Not All Debt Is Created Equal
- Conclusion
- Abbreviations and Acronyms
- Bibliography
- Index
Summary
It is easy to tell a story about the benefits of capital flows and open capital markets. The free movement of financial capital lets the receiving countries obtain more resources for investment while businesses and individuals in the sending countries earn higher returns. History is full of examples. In the nineteenth century, the United Kingdom invested its savings in infrastructure projects around the world, but especially in its colonies and former colonies where British savings were used to build the railroads, seaports, mines, urban sanitation systems, and other major projects. British investors were not alone in investing in the Americas, Asia, and Africa, but were joined by German, French, Dutch, and others lenders and investors.
- Type
- Chapter
- Information
- A Great Deal of RuinFinancial Crises since 1929, pp. 266 - 278Publisher: Cambridge University PressPrint publication year: 2019