International Capital Movements and the Integration of Capital Markets (Main Paper, Working Group E)

  • Peter B. Kenen
Part of the International Economic Association Series book series (IEA)


Because we are to look at capital mobility and the integration of capital markets, I propose to emphasise dimensions of mobility that find their expression in organised markets — international transfers of instruments like stocks and bonds. I shall not say much about transfers of titles to real property or, at the opposite end of the spectrum, transfers of money in currency markets. In other words, I shall neglect direct investment and, with more serious misgivings, the problems of monetary integration posed by alternative exchange-rate regimes.


Exchange Rate Interest Rate Monetary Policy Central Bank Capital Mobility 
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  1. 4.
    R. A. Mundell, ‘A Theory of Optimum Currency Areas’, in American Economic Review, Sep 1961; and R. I. McKinnon, ’Optimum Currency Areas’, in American Economic Review, Sep 1963.Google Scholar
  2. 5.
    L. B. Krause, ‘Implications for Private Capital Markets’, in European Monetary Unification and its Meaning fbr the United States ed. L. B. Krause and W. S. Salant (Washington, DC: The Brookings Institution, 1973).Google Scholar
  3. 7.
    See V. Argy and Z. Hodjera, ‘Financial Integration and Interest Rate Linkages in the Industrial Countries’, International Monetary Fund, Staff Papers (Mar 1973).Google Scholar
  4. 8.
    C. P. Kindleberger, ‘The Pros and Cons of an International Capital Market’, in Zeitschrift fur die gesamte Staatswissenschaft, Oct 1967.Google Scholar
  5. 9.
    R. A. Mundell, ‘The Appropriate Use of Monetary and Fiscal Policy for Internal and External Stability’, International Monetary Fund, Staff Papers (Mar 1962).Google Scholar
  6. 11.
    J. C. Ingram, ‘A Proposal for Financial Integration of the Atlantic Community’, in Factors Affecting the United States Balance of Payments (Washington DC: Joint Eco-nomic Committee, US Congress, 1962), and The Case for European Monetary Integration (International Finance Section, Princeton University, 1973).Google Scholar
  7. 12.
    T. Scitovsky, Money and the Balance of Payments (New Haven: Yale University Press, 1969).Google Scholar
  8. 18.
    See, however, R. I. McKinnon and W. E. Oates, The Implications of International Economic Integration for Monetary, Fiscal and Exchange Rate Policy (International Finance Section, Princeton University, 1966).Google Scholar
  9. See Mundell’s early work, as illustrated in R. A. Mundell, International Economics (New York: Macmillan, 1968). Cf. also the two articles cited in note 3 above.Google Scholar

Copyright information

© International Economic Association 1976

Authors and Affiliations

  • Peter B. Kenen
    • 1
  1. 1.USA

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