复旦大学国际金融学.ppt

International Finance for developing Countries Preview Developing countries behave similarly to industrial countries, but operate in a different environment. A number of specific macroeconomic issues in developing nations have not been of similar importance in the industrial world. The relevance of industrial-country international finance to developing nations has been the subject of debate for some time: “Monetarist” or “orthodox” versus “structuralist”. International finance for developing countries provides a more balanced approach to the open macroeconomic issues in the developing nations (for example,causes and consequences of external imbalances,effects of macroeconomic policies). 1.Monetarism, Structuralism, and Developing Nations Debate on relevance of industrial-country macroeconomic analysis to developing nations. “Monetarist” or “orthodox” versus “structuralist”. Orthodox View: Long-run growth in developing countries is hampered by dirigiste policies that distort the allocation of resources. Prescription: giving full scope to market mechanisms via free trade and noninterventionist domestic policies. In the short run, high inflation and balance-of-payments deficits reflect excessive money growth fueled by large fiscal deficits. Cure: tight fiscal policy and “getting prices right”, by devaluing and raising domestic interest rates. Policies based on the orthodox view have been promoted by international financial institutions. Early Structuralist School: Primary-exporting countries would face deteriorating terms of trade relative to the manufactured goods-exporting industrial-nation. Reason: Lower income elasticities of demand for raw materials than for industrial goods. Policy intervention was required to change the structure of production in the periphery. Industrialization should be promoted by protecting “infant industry” against competition through: use of trade barriers and foreign exchange controls; providing special advantages to