Both had resisted capital market liberalization.

The fundamental problem was premature capital market liberalization.

Financial markets did well through capital market liberalization.

But domestic money growth in China s immature bank based capital market is high and unpredictable, while many interest rates remain officially pegged.

The government is now seeking to decontrol domestic interest rates, create a more robust domestic bond market, and finally remove capital controls.

Thus, while liberalization of Japan's capital market in the early 1980s tied Japanese and US interest rate movements, Japanese interest rates were discounted by the expected rate of currency appreciation.

Unfortunately, under the preceding years of IMF programs, the market economy with high interest rates, illegitimate privatization, poor corporate governance, and capital market liberalization provided only incentives for asset stripping.

The stock market allocates capital more efficiently than banks.

Emerging market interest rate spreads now are abnormally low.

Will the government liberalize interest rates or loosen capital controls?

With the property market booming, prospective capital gains promised untold wealth.

A floating currency is inevitable as China liberalizes its capital market and eliminates restrictions on international capital movements otherwise, China would have to surrender control over its money supply and interest rates to the US.

But this vigorous attempt to reduce interest rates is distorting capital allocation.

In a liberalized capital market, the undiminished risk that the yuan might appreciate means that investors must be compensated by a higher interest rate on dollar assets.

The capital market is not what it was a few years ago.

Vast amounts of short term capital, speculating on interest rate convergence or equity market gains, are flowing into the most advanced candidate countries, driving up their currencies and increasing their vulnerability to a sudden capital flow reversal.

Today s capital markets raise money for governments, corporate clients, and individual customers, manage pension funds investments, and bet on the level of interest rates or the stock market.

To manage exorbitant demand for financial and physical assets, China s leaders must address its root cause the low cost of capital. Doing so will require maintaining some capital account control, while raising interest rates to market clearing levels.

Meanwhile, the opacity of capital indicators has made market discipline impossible to impose.

Even without capital market liberalization, the world will continue to face enormous volatility.

Presumably bank closures, higher interest rates, and fiscal tightening to restore market confidence.

Then financial liberalization could proceed with market interest rates remaining at normal levels.

This drove up interest rates for emerging market debt as an asset class .

Interest rates thus incentivize and convey to entrepreneurs how to allocate capital through time.

Thus, the market can establish the necessary interest differential only if interest rates on yuan assets fall below their dollar equivalents.

International capital flows will also magnify such demographic spillover effects, as capital is traded at the interest rates determined in large industrial economies.

This would provide a tremendous boost to the market and drastically reduce interest rates.

Creation of a new institution, a Maghreb Common Market, would be in everyone s interest.

According to the followers of Knut Wicksell, the central bank must keep the market rate of interest near the natural rate of interest.

The eurozone provides the only large capital market other than the US for such investments.

The single market principle was supposed to promote the efficient allocation of capital and labor.

Firms do not compete freely for stock market capital former SOEs, indeed, receive preferential treatment.

London's property market fared well during the downturn as foreign buyers piled into the capital.

Emerging market economies will take some steps, including interest rate cuts, to safeguard domestic growth.

Sometimes we rely on our judgment in combining interest rate action with open market operations.

An invasion of short term capital flows fleeing the slow growth, low interest rate advanced countries.

Nonetheless, we continue to transfer capital to rich countries to pay interest on our foreign debt.

Thus, while liberalization of Japan's capital market in the early 1980s tied Japanese and US interest rate movements, Japanese interest rates were discounted by the expected rate of currency appreciation. As long as US interest rates were high, Japanese interest rates remained fairly positive, allowing the BOJ to moderate the effects of the yen's appreciation by easing domestic monetary policy.

The result has been a lethal combination of currency convertibility, skyrocketing interest rates, low inflation, and free capital movement, which merely fuels speculation and capital flight.

Emerging market economies were told to remove controls on international capital flows upon joining the OECD.

A serious discussion of global capital account regulations would benefit both advanced and emerging market economies.

Pushing for greater capital market liberalization after the debacle of the 1990 s will be controversial.

Emerging market economies were told to remove controls on international capital flows upon joining the OECD.

To what particular labour and capital market institutions might responsiveness to share prices be strongly linked?

You do not have the capital or what it takes to bring this drug to market.