1991 Fiscal Year Final Research Report Summary
Liveralization and Internationalization of Capital Market
| Project/Area Number |
01301074
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| Research Category |
Grant-in-Aid for Co-operative Research (A)
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| Allocation Type | Single-year Grants |
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| Research Field |
一般理論
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| Research Institution | Keio University |
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Principal Investigator |
OHYAMA M. Keio Univ., Economics Professor, 経済学部, 教授 (10051517)
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| Co-Investigator(Kenkyū-buntansha) |
SHIOZAWA. S. Keio Univ., Economics, Asso. Professor, 経済学部, 助教授 (90146564)
DEI F. Kobe Univ., Asso. Professor, 経営学部, 助教授 (90093541)
YOSHINO N. Keio Univ., Economics, Professor, 経済学部, 教授 (50128584)
MAKI A. Keio Univ., Commerce, Professor, 商学部, 教授 (20051906)
NISHIMURA K. Univ. of Kyoto, Professor, 経済研究所, 教授 (60145654)
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| Project Period (FY) |
1989 – 1991
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| Keywords | capital market / current account / capital movements / direct investment / exchange rates / monetary and fiscal policies / policy coordination / business cycle |
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| Research Abstract |
In recent years the world has experienced growing current account deficits, wild fluctuations in exchange rates, acceleration of international direct investments, international linkages of national monetary and fiscal policies and international synchronization of business cycles. These new developments are related to the liberalization and internationalization of national capital markets promoted through 1980's. The purpose of the present study is to develop international macroeconomic models incorporating international capital markets which enable us to explain these new developments and to explore their implications for economic wilfare of nations. We may also use the models to reconsider a country's external economic policies and international economic coordination. The major results of this study are as follows.
(i) A simple monetary model of international trade and finance is developed to illustrate that exchange rate changes have little role to play in adjusting current account imbalances (Ohyama). (ii) The international transmission of business cycle is shown to be affected by the pattern of international specialization (Nishimura and Yano). (iii) The dynamic behavior of a country's external debt is analyzed : it may be either monotonic or cyclical depending on the interst-rate schedule she faces in international capital markets (Nishimura and Ohyama). (iv) The effects of fiscal and monetary policies on the real exchange rate and current account balances are investigated in the context of alternative models of trade and finance (Takabashi and Shiozawa). (v) There are also analyses of international direct investment, purchasing power parity and liberalization of domestic capital markets in Japan (Dei, Maki and Yoshino).
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