The Case for Regulating International Capital Flows

  • Louise Davidson

Abstract

How one interprets financial market activity and chooses a policy stance regarding the regulation of such markets depends on the underlying economic theory that one explicitly, or implicitly, utilizes to explain the role of financial markets in an entrepreneurial economy. There are two major alternative theories of financial markets: (1) the Classical efficient market theory (hereafter EMT) and (2) Keynes’s liquidity preference theory (hereafter LPT). Each theory produces a different set of policy prescriptions.

Keywords

Depression Europe Covariance Income Assure 

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Copyright information

© Paul Davidson 1999

Authors and Affiliations

  • Louise Davidson

There are no affiliations available

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