Capital Movements Research Articles

Tracing secular stagnation to the prevention of communism, through the prism of economics and Marxist political economy

This paper addresses the limits encountered by bourgeois economics in understanding the significance of the term ‘secular stagnation’, using the concept of ‘total factor productivity’ to make this case. It then criticises Marxist political economy for creating models of capital, which prevent one moving much beyond an abstract theory of crisis to grasp what underlies capitalist elite concerns about secular stagnation. The paper then offers some reflections on why the meaning of secular stagnation is more likely to be found between the real movement of capitalism, socialism and communism, rather than economic models of capital.

انعكاس سعر الصرف على التضخم في الاقتصادیات الناشئة

The paper is a summary of a research in Pass-through exchange rate, that has taken agreat part in the writings of international finance by measuring the impact of the exchange ratereflection on domestic prices. It is partly partial and total, which affects the channels of transferbetween countries through commercial transactions or capital movement. The determinants ofreflection are: structure and level of competition in market, inflationary environment, economicactivity, real exchange rate, degree of trade openness, exchange rate systems, citing a series ofempirical studies and measurement results in developing countries. Reflections are represented inTaylor 2000, Edwards 2006.

Международное и национально-правовое регулирование перемещения капиталов и Конституция России

Международное и национально-правовое регулирование перемещения капиталов и Конституция России

Air Maidans, Can It Be?

Airports are located at the core of the production process, but can they also be where the “revolutionary subject” is hidden? We know what airports stand for nowadays, but have we pushed for what they could possibly stand for? Can airports, as a form of urban technology, be reimagined beyond their current roles of a “space technology nexus” driving capital movement? Can we imagine, idealize, and locate them somewhere else in a period dominated by the economy of time, where speed and accessibility matter the most? In this framework, this provocative essay aims to frame airports as a protest and public expression venue. Drawing inspiration from recent examples, such as the Stansted Airport protests in the UK, the Occupy Airports protests that occurred all around the United States, and touching upon the divergent example of Turkey’s 15th of July night protests in 2016, I provide a glimpse of an alternative prospect for this key urban infrastructure.

The IMF’s Jurisdiction Over The Capital Account—Reviewing the Role of Surveillance in Managing Cross-Border Capital Flows

In 1941, John Maynard Keynes noted that “[n]othing is more certain than that the movement of capital funds must be regulated; which in itself will involve far-reaching departures from laissez-faire arrangements”. 77 years later, the international regulation of capital movements appears everything but certain. The purpose of this paper is to review the IMF’s jurisdiction over the capital account. While the IMF has become the most important international financial institution (IFIs) to oversee international flows of capital, it has surprisingly little formal power to influence its members’ capital flow measures (CFMs). This paper revisits the case for as well as against strengthening the IMF’s (formal) jurisdiction over countries’ capital account. We also link this debate to the ongoing discussion in policy-making circles. Moving forward, the IMF could play more central and powerful a role in determining what capital account policies support or undermine the stability of its members and the system as a whole. As we show in this paper, while reluctant to legally empower the Fund, states have endorsed a gradual expansion of its bilateral and multilateral surveillance mandate, thereby implicitly favouring “soft” law over “hard” law solutions. An important question is thus whether the Fund’s surveillance functions and the mechanisms of peer pressure and moral suasion that its efficacy relies upon, are adequate means for the IMF to fulfil its mandate? Without providing an exhaustive answer, the paper provides an overview of the debate and makes some suggestions on the way forward.

China’s Monetary Policy under the “New Normal”

How China’s “new normal” affects the conduct of monetary policy deserves a careful study. The enormous task of economic restructuring, amid conflicting goals, has certainly introduced a new set of challenges to macroeconomic management. This article provides empirical evidence to show that the conduct of China’s monetary policy has indeed changed and become less predictable since 2013. While supply-side structural adjustments significantly decrease local governments’ appetite for investment and create slacks in aggregate demand, macroeconomic policymakers feel compelled to ease off deleveraging pressures when the adjustment pains are considered unbearable. The monetary authority also faces the policy trilemma when the internationalisation of the renminbi requires a strong currency and free flow of capital. Furthermore, the dual-track interest rate system creates speculative capital movements between bank deposits and the money market which complicates the transmission mechanism of monetary policy. Inconsistencies are thus created, and reversals of policy direction are frequently observed.

Uncovered Interest Rate Parity: The Turkish Evidence

AbstractThis paper presents an empirical investigation of the uncovered interest parity (UIP) between the Turkish Lira (TRY)/US Dollar (USD) and Turkish Lira/Euro (EUR). Our results do not provide evidence supporting the UIP hypothesis for either case. Moreover, the estimates imply causality from the TRY/USD exchange rate return to the interest rate differential. Accordingly, the Turkish Central Bank (CBRT) may respond by increasing the domestic interest rate to a depreciation of the TRY against the USD . By taking this type of action, it can be concluded that the CBRT tried to control capital movements. This result supports (McCallum, Bennett T. 1994. “A Reconsideration of the Uncovered Interest Parity Relationship.”Journal of Monetary Economics33 (1): 105–132.)’s argument, which advances the behavior of the monetary policy as a reason for the failure of the UIP condition.

THE IMPACT OF FLAT TAX RATES ON FOREIGN DIRECT INVESTMENT

Main aim of this paper is to investigate the effect of corporate income tax rates on foreign direct investment (FDI) in the countries which has flat tax application in the pattern of long-run relationship of FDI and its determinants which are known as market size, labor cost, trade barrier, growth rate, openness, trade deficit, and tax rates. For the empirical analysis we use annual data for 1990-2014 for the countries which have applied flat tax reforms and smaller corporate income tax rates in order to focus and draw out the effect of tax rate instrument on capital movements in the point of tax competition. According to panel regression and cointegration results, corporate tax rate has significant and negative impact on FDI.

Migration, FDI, and Welfare

We investigate migration and foreign direct investment (FDI) for a small trading economy. Historically, immigration in small countries has been accompanied by FDI inflows (complementary capital movements). Based on the skill composition of migrants, empirical evidence finds that skilled immigration is accompanied by FDI inflows but unskilled immigration is accompanied by FDI outflows (substitutable capital movements). We prove that the Heckscher-Ohlin model cannot reconcile these apparently contradictory observations. We introduce a theoretical model in which capital and unskilled labor are sector specific, and demonstrate that this model can reconcile the historical and empirical observations on migration and FDI.

Service sector productivity and economic growth in Asia

The paper explores the historical experience of productivity growth in the Asian economies over recent decades, with a focus on the service sector. Based on this historical experience, the paper then evaluates the impact of more rapid growth in labor productivity in the service sector in Asia using an empirical general equilibrium model that allows for goods and capital movements across sectors and economies, and consumption and investment dynamics. We find that faster productivity growth in the service sector in Asia contributes to sustained and balanced growth of Asian economies, but the dynamic adjustment is different across economies. In particular, during the adjustment to higher services productivity growth, there is a significant expansion of the durable manufacturing sector that is required to provide the capital stock that accompanies higher economic growth.

International Capital Movement and Monetary Independence in Asia

In this paper, we investigate the extent of monetary independence in a group of ten Asian countries: China, Malaysia, Japan, India, Indonesia, Philippines, Thailand, Korea, Singapore, and Hong Kong. While the traditional investigation has considered only the bivariate relationship between the home interest rate and the base rate, we employ both single-equation and vector autoregressive representations of the bivariate and the trivariate relationship including the desired (or optimal) interest rate. We find in most countries, that the ranking of monetary independence is relatively consistent across the models and methodologies although model specifications produce important differences for some countries such as Japan, Indonesia, and India. Trilemma suggests that a country cannot accomplish all three policy objectives: monetary independence, exchange rate stability, and free capital mobility. To increase monetary independence a country must choose between greater exchange rate flexibility or a lower degree of capital mobility. The fact that China and Malaysia, the two countries that are known to have imposed the strictest capital controls, consistently rank high in various scenarios while Hong Kong, which has maintained nearly the freest regime in capital markets, is lowest in monetary independence, indicates that perhaps capital controls may play a more important role than does exchange rate flexibility in securing independence in monetary policy making. On the other hand, countries that maintain greater exchange rate stability do not necessarily rank low, unless it is combined with greater capital mobility as in the case of Hong Kong.

(Liberalization of Capital Flows in Russia and the OECD Code)

Russian Abstract: Либерализация движения капитала является ослаблением ограничений в отношении потоков капитала через границы страны. Она способствует финансовой интеграции. В России сохраняется существенное число барьеров для движения капитала, которые не применяются в странах ОЭСР, где регулирование трансграничных потоков капитала осуществляется в соответствии с принципами Кодекса либерализации движения капитала ОЭСР. English Abstract: Liberalization of capital мovements is the elimination of restrictions on the capital flows across the country's borders. It promotes financial integration. Russia retains a number of re-strictions on the movement of capital that are not applied in OECD’s countries where the regulation of cross-border capital flows is carried out in accordance with the principles of the OECD Code of Liberalisation of Capital Movements.

Возникновение и движение капиталов, состоявших в ведении Римско-католической духовной коллегии Российской империи

Возникновение и движение капиталов, состоявших в ведении Римско-католической духовной коллегии Российской империи

China in Australia: The Discourses of Changst

China matters significantly to contemporary Australia in terms of trade relations, capital movements, education and global order. Australian public discourse on China, however, inhabits two conflicting parallel universes, one a narrative of economic complementarity, the other of fear and anxiety. The spectre of the rise of China haunts Australian society in and among these two spheres: one in which China’s economic rise is to be encouraged as a sign of it joining the capitalist world system, and the other in which China’s ascent is regarded as a threat to be contained. The paper examines this problematic discourse, calling it Changst [China angst], arguing that it is permeated with a developmentalist logic (Chakrabarty, 2000) that misreads China through the homogenising history of both capitalism and Eurocentrism. This reading of China as but a copy of Western capitalism evokes anxiety because its distinctive forms of capital flow disrupt the comforting teleology. Equally, when Chinese society, including its education system, is perceived as not-yet modern, this induces fear of cultural contamination from the outpouring of Chinese international students. The exploration of this anxiety is conducted via six Australian case studies, showing how China’s engagement with Australia produces intense but unwarranted angst.

A Cultural Ambassador East and West: J. Hillis Miller’s Lectures in China

A Cultural Ambassador East and West: J. Hillis Miller’s <i>Lectures in China</i>

Do short-term international capital movements play a role in exchange rate and stock price transmission mechanism in China?

This paper applies wavelet analysis to investigate the role of short-run international capital movements (SICM) in the interaction mechanism between the exchange rate and stock prices (SP). The bilateral co-movements between these three variables are time-varying and inconsistent in some periods, and the flow of SICM is insufficient to explain the difference between the results obtained by testing SP and exchange rate nexus alone and then testing it taking SICM as a control variable, thus indicating a limited mediating role for SICM. However, SICM still cannot be ignored with the process of Renminbi internationalization and capital account liberalization.

Crisis in the European Monetary Union: A Core-Periphery Perspective

“Crisis in the European Monetary Union: A Core-Periphery Perspective” explains what lies behind the decision of a set of politically, economically and socially heterogeneous countries, having in common a loose geographical proximity, to engage in a process of monetary integration, consisting of fully liberalizing goods and capital movements, establishing supranational authorities in charge of ensuring undistorted competition in a supposedly levelled playing field, and abandoning fiscal, monetary and exchange-rate sovereignty. This process of European-wide globalization reshaped the structural core-peripheries trade and industrial relationships. We assist today to the emergence of a polarized Europe, characterized by an industrial and industrialising core, a less industrialized and de-industrializing south periphery and a rapidly catching-up eastern periphery.

The Consumer Experience of Responsibilization: The Case of Panera Cares

In this paper, we explore the consumer experience of responsibilization, wherein consumers are tasked with addressing social issues via their consumption choices. We study an approach to responsibilization which we label conscious pricing. Conscious pricing asks consumers to place a price on morality: How much would they pay for their lunch to combat the social issue of food insecurity? Conscious pricing stems from the broader movement of conscious capitalism, defined by its chief architects as an approach to business wherein the goal is to create value for all stakeholders: financial, ecological, ethical, and spiritual. Strategies such as conscious capitalism rely on consumers acting responsibly, assuming that consumers, when presented with the opportunity to “do good,” will do so, and that consumers will prefer companies who provide them this opportunity. Using a case study approach and online reviews, in our analysis of Panera Cares, we find that consumers in fact experience discomfort when asked to address social issues via how much they choose to pay for their meal. Because food insecurity is embodied by homeless people eating with them in the café, eating in the café is perceived as unpleasant, and the homeless also feel demoralized. This discomposure leads consumers to resist the subject position of being responsibilized by not supporting the organization that is tasking them to do so. This study is the first empirical examination of the consumer experience of consumer responsibilization and allows us to contribute to a deepened understanding of consumer ethics.

Karl Marks - Manifest, radikalna demokratija ili futuristička alhemija

The celebration of 200th anniversary of birth of Karl Marx, a renowned social theorist and the symbol of world revolution, not less an intellectual, as well as 170 years since publication of the Manifesto of the Communist Party, the foundation and the ideological programme of the liberation from capitalism movement, seems to bring Marx back into the heart of capitalism, extreme and arrogant liberalism. That is done in commercial, marketing and tourist way, turning him into a souvenir and 'the goods' of social system without an alternative, for which the term capitalism itself is dispensable. That way even Marx's criticism of capitalism is pacified through a kind of normalization of explosive potential, its contradictions (exploitation, poverty, inequality), reducing his deepest and the most mature analytic consideration of the structure of capitalist relations to a conservative implication. Such implication is more due to Marx's personality than the coherence of his writings, especially the Manifesto of the Communist Party, in which the first step towards the inescapable 'futuristic alchemy' of the communist revolution, i.e. 'proletariat organized into a ruling class', is a struggle for democracy. Paradoxically as it may sound, it even brought about the crash of communism, the unfinished vision of free society that is in the core of Marx's Manifesto. The question remains whether that vision would forever stay buried under these ruins or the necessity of its excavation would make Marx's ideas and work topical again.

Fiscal Incentives, Competition, and Investment in China

This paper explores how fiscal incentives offered to local governments in China affect investment rates in their jurisdictions. Theoretically, we build a simple fiscal competition model to establish the linkage between local fiscal incentives and expenditure policy and consequently, capital movement. The key prediction of the model, borne out by data from Chinese provinces spanning 2004–2013, is that an increase in the local corporate income tax-sharing ratio, which proxies fiscal incentives offered to local governments, motivates local governments to compete for capital investment through increased public expenditures. Our results contribute to the fiscal federalism literature by showing that local fiscal incentives significantly shape policy choices and local economic performance. In addition, by exploring fiscal incentives offered to local governments, we offer a novel explanation for the unusually high investment rate in China that has been sustained over a prolonged period of time.