Financial Innovations and the Welfare of Nations | How Cross-Border Transfers of Financial Innovations Nurture Emerging Capital Markets

Paul M. Vaaler (u. a.)

ISBN 10: 1461356466 / ISBN 13: 9781461356462

Published by Springer, 2012

About this Item

Financial Innovations and the Welfare of Nations | How Cross-Border Transfers of Financial Innovations Nurture Emerging Capital Markets | Paul M. Vaaler (u. a.) | Taschenbuch | xii | Englisch | 2012 | Springer | EAN 9781461356462 | Verantwortliche Person für die EU: Springer Verlag GmbH, Tiergartenstr. 17, 69121 Heidelberg, juergen[dot]hartmann[at]springer[dot]com | Anbieter: preigu.

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Bibliographic Details

• Title: Financial Innovations and the Welfare of Nations | How Cross-Border Transfers of Financial Innovations Nurture Emerging Capital Markets
• Publisher: Springer
• Publication Date: 2012
• Language: English
• ISBN 10: 1461356466
• ISBN 13: 9781461356462
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 235W x 155H x 21D millimeters 235 millimeters width by 155 millimeters height by 21 millimeters depth
• Weight: 581 grams
• Seller catalogs:
  • Bücher

About this title

Synopsis

The central question addressed in Financial Innovations and the Welfare of Nations is how the transfer of financial innovations from developed to developing economies can nurture the dynamics of emerging capital markets. National capital markets can be positioned along a continuum ranging from embryonic to mature and emerged markets according to a decreasing "national cost of capital" criterion. In the introductory chapter Laurent Jacque argues that newly emerging countries are handicapped by a high cost of capital due to "incomplete" and inefficient financial markets. As capital markets graduate to higher level of "emergedness", their national firms avail themselves of a lower cost of capital that makes them more competitive in the global economy and spurs economic growth. Skillful transfer of financial innovations to emerging markets often encourages the deregulation of the country's financial services sector. This results into new conduits for a more efficient capital allocation process such as commercial paper, securitized consumer finance and other disintermediated modes of financing which out-compete traditional financial intermediaries (mostly commercial banks), reduce households' cost of living and conjointly fuel the dynamics of emerging markets. Our response to the central question of how the transfer of financial innovations can enhance the Wealth of Nations is to show that it reduces the cost of capital while not unduly increasing systemic risk. Part I examines the relationship between financial innovations and systemic risk of the international financial system.

About the Author

Laurent L. Jacque is a Professor of International Finance and Banking and Director of the Program of International Business Relations at the Fletcher School (Tufts University). He is also Professor of Finance and International Business at the HEC School of Management (France). Paul M. Vaaler is Assistant Professor of International Business, and Director of the Hitachi Center for Technology and International Affairs at the Fletcher School (Tufts University).