International Capital Markets

Paper Summary:

The paper compares the 19th century capital markets, whose stability resulted from the trust in the gold standard, with capital markets today, which provide the means to raise capital for all ventures. The paper notes that investments in the products available in the capital markets help generate funds and stabilize interest rates and are an indicator of the status of the economy. The paper further notes that, unlike the colonial past, the modern economies that are developing need special care regarding the effects of the capital on states labor. In comparison with the 19th century market which was good, the present international capital market is in chaos. The paper concludes that while the modern international capital markets has great problems, it is unique to the present, and cannot be compared to the economy that was based on a colonial world, although some economic features seem to be common in both

Outline:
Introduction
International Capital Market in the Nineteenth Century
Transition from the Old to the New
The Post War Economy and Globalization
International Capital Market - Analysis
Globalization and the International Capital Market
Comparison of both the Markets
Conclusion

From the Paper:

"During the depression of 1920 and the Second World War, the system collapsed. Post war activity was more in direct investment and the United States has emerged as a more powerful player. The post war scenario witnessed the entire capital surplus of the nineteenth and twentieth century evaporates. The capital market has come back to the operative state ever since 1972 and is growing to the state it was in the nineteenth century. The amount of capital flow in the globe in the nineteenth century shows that the market was well organized at that period. The capital market integration was also taking place within the countries that participated during the period. (O'Rourke H; Williamson, 1999) "The integration of capital markets is usually tested with an interest rate arbitrage model even though much different financial assets must be compared."

Sample of Sources Used:

• Anderson, Sarah. (1998, Dec) "International Financial Flows" edited by Tom Barry (IRC) and Martha Honey (IPS), Foreign Policy in Focus, Vol. 3, no. 41. Retrieved 27 February, 2008 from http://www.hartford-hwp.com/archives/25/093.html
• Bordo, Michael D; Goldin, Claudia; White, Eugene N. (1999, May) "The Great Depression as a Watershed: International Capital Mobility over the Long Run" NBER Working Paper No. 5960. Retrieved 26 February, 2008 from http://www.nber.org/papers/w5960
• Cowen, David. "Exchange Rate Regime Choice and Economic Performance in the Interwar Years" The Journal of Economic History, Vol. 57, No. 2 (Jun., 1997), pp. 491-493. Retrieved 27 February, 2008 from http://links.jstor.org/sici?sici=0022-0507(199706)57%3A2%3C491%3AERRCAE%3E2.0.CO%3B2-0
• Davis, Lance E; Gallman, Robert E. (2001) "Evolving Financial Markets and International Capital Flows: Britain, the Americas, and Australia, 1865-1914" Cambridge University Press. Cambridge, England. Retrieved 26 February, 2008 from http://www.questia.com/read/106186853#
• Fernandez-Arias, Eduardo; Hausmann, Ricardo. (1999, Nov) "Getting it Right: What to Reform in International Financial Markets" Presented at the Tenth International Forum on Latin American Perspectives, Paris. Retrieved 27 February, 2008 fromhttp://search.iadb.org/templates/asp/pages/support/view.asp?k2dockey=http%3A%2F%2Fidbdocs%2Eiadb%2Eorg%2Fwsdocs%2Fgetdocument%2Easpx%3Fdocnum%3D788250%40IDBDocs&serverSpec=search.iadb.org:9920&querytext=international+capital+markets&QueryParser=Internet%5FAdvancedWeb&dtype=1&Pdf2Html=1

More papers on International Capital Markets:

• Research Paper # 74990 : "Rating Agencies in The International Bonds Market"
• Research Paper # 56995 : "Money and Capital Markets Development"
• Analytical Essay # 8220 : "SEC Concept Release on International Accounting Standards"

APA Citation:

MLA Citation: