capital mobility

In case of a small open economy, we assume perfect capital mobility.

The Bush administration wants to end remaining controls on capital mobility.

There are however, distribution effects to labour resulting from capital mobility.

Increased capital mobility was a result of a number of factors.

The effects of capital mobility on offshoring have been widely discussed.

There is good capital mobility through new banking facilities.

Removal of barriers to capital mobility can also lead to net welfare gains.

"We are living in an era of capital mobility and labor mobility.

But under perfect capital mobility, any such sterilization would be met by further offsetting international flows.

Openness with capital mobility and price and wage flexibility across the region.

Improved labor capital mobility can also increase financial capital exchange through remittances.

Hence, in a world of perfect capital mobility, a country with fixed exchange rate would not be able to execute an independent monetary policy.

A currency union cannot exist without perfect capital mobility across the union and a fully integrated financial sector.

Besides that, the hypothesis that the world economy operates under perfect capital mobility is clearly flawed.

Under perfect capital mobility, the BoP curve is always horizontal at the level of the world interest rate.

But in the Mundell-Fleming open economy model with perfect capital mobility, monetary policy becomes ineffective.

It refers to the trade-offs among the following three goals: a fixed exchange rate, national independence in monetary policy, and capital mobility.

However, given financial liberalization and resulting capital mobility, arbitrage temporarily became possible until equilibrium was restored.

Two assumptions central to interest rate parity are capital mobility and perfect substitutability of domestic and foreign assets.

Although greater capital mobility is likely to reduce comparative advantage, barriers to capital flows are not the only way to derive it.

In a perfectly competitive market system, with a fixed stock of capital, and no capital mobility the situation is as depicted in Figure 2.6.

In macro-economic terms, it emphasizes a fixed currency and autonomy over monetary policy over capital mobility.

By perfect capital mobility, we mean that residents of a country have full access to goods and services and specially financial markets of the world.

On the global scale, integrated economies provoke time-space compression enabling enhanced communication and capital mobility.

"Globalization, economic integration, trade and capital mobility, and the free exchange of ideas across borders have not rendered politics obsolete.