Abstract
The article under the title deals with the difficulties in pursuing national fiscal policy in conditions of international financial liberalization. The author analyzes the nature of liberalization of international capital flows and its positive and negative consequences for the economies of the countries which participate in global capital movement. The author especially highlights the fact that international financial liberalization often leads to economic crises and what is even more important to their rapid spread between countries due to their growing financial interdependence. The author distinguishes two groups of fiscal policy problems in conditions of international financial liberalization. The first group includes problems arising due to quick spread of the crises due to eliminating restrictions on crossborder capital flows. These are reduction in taxes and at the same time increase in budget spending, which often happens unexpectedly and substantially impedes fiscal policy. To illustrate these points the author refers to the statistics on Spain, the USA and the OECD as a whole. Moreover countries face another range of problems regardless of the business cycle phase. In the short term it is the necessity of large scale structural economic reforms to achieve the required level of financial liberalization, which often is a heavy burden on the state budget. In the long term the attention is paid to the problem of tax competition between countries, which affects the instruments of fiscal policy. The author notes that the negative consequences of global financial liberalization are relevant not only for recipient countries but for donor countries as well and emphasizes such a burning issue as "capital flight".
Highlights
The author analyzes the nature of liberalization of international capital flows and its positive and negative consequences for the economies of the countries which participate in global capital movement
The author especially highlights the fact that international financial liberalization often leads to economic crises and what is even more important to their rapid spread between countries due to their growing financial interdependence
In the short term it is the necessity of large scale structural economic reforms to achieve the required level of financial liberalization, which often is a heavy burden on the state budget
Summary
Московский государственный институт международных отношений (университет) МИД России. В краткосрочном периоде – это необходимость значительных структурных реформ в экономике для обеспечения требуемого уровня финансовой либерализации, что создаёт существенную нагрузку на бюджет страны. Нии мер бюджетной политики страны нельзя не Однако финансовая либерализация имеет учитывать современные экономические реалии, и существенные отрицательные моменты. МВФ, указывая на составляющих данного процесса является про- преимущества финансовой либерализации, цесс минимизации или полной ликвидации огра- признаёт, что «волатильность потоков капиничений на движение капитала между странами, тала создаёт риски для экономики» [1]. Причём данное воздействие финансовой либе- операций при либерализации экономики, как рализации особенно опасно в условиях кризиса, правило, не сопровождается таким же ускорентак как снижается результативность антикри- ным развитием законодательной и правовой зисных мер, предпринимаемых правительством базы, которая регулирует деятельность банков и центральным банком. Будучи отражением цены ятельствах это может привести к масштабному капитала, имеет тенденцию к выравниванию. финансовому и экономическому кризису
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
