Dance of the Trillions

Developing Countries and Global Finance

David Lubin

• Publisher: Brookings Institution Press
• Year: 2018
• Print ISBN:
  9780815736745
• Edition: 1
• eBook ISBN:
  9780815736752
• Topic: Economics
• Subtopic: Business General
• Index: Economics

In Dance of the Trillions, David Lubin tells the story of what makes money flow from high-income countries to lower-income ones; what makes it flow out again; and how developing countries have sought protection against the volatility of international capital flows. The book traces an arc from the 1970s, when developing countries first gained access to international financial markets, to the present day.

Underlying this story is a discussion of how the relationship between developing countries and global finance appears to be moving from one governed by the "Washington Consensus" to one more likely to be shaped by Beijing.

Index

Agriculture exports, 14, 15, 24

Algeria, current account balance in, 27

Ali, Anwar, 23

Allende, Salvador, 30

Angola, exports from, 94

Arab-Israeli War (1973), 19

Argentina: capital flight from, 33; credit demand in, 28; currency rates in, 15, 55, 57–58, 91, 120; financial crisis (2001), 9, 42, 89–90; IMF loans to, 82; inflation in, 58

Asian financial crisis (1997), 9, 39, 42, 51–54, 73, 104

Asian Infrastructure Investment Bank, 123

Bagehot, Walter, 43

Baker, James, 45

Baker 15 Plan, 28, 45–46

Banco de la República (Colombia), 67

Banco do Brasil, 29

Banco Español (Cuba), 2

Banco Nacional (Cuba), 2

Bank for International Settlements, 113

Banque Commerciale pour L’Europe du Nord, 24

Basel Committee on Banking Supervision, 56

Beijing Consensus, 109–28; and Belt and Road Initiative, 122–24; and capital accounts, 114–19; and “crisis-proofing” of emerging markets, 119–22; and managed convertibility, 111–14

Belize, as emerging market, 6

Belt and Road Initiative (China), 122–24

Bernanke, Ben, 113

BNDES (Brazil), 29

Bolivia: credit default, 15; credit demand in, 28; inflation in, 68

Bolsa Família (Brazil), 94

Bond sales, 14–15

Brady, Nicholas, 46

Brady Plan, 46–47

Brazil: capital controls in, 11, 114; capital flows in, 32, 120; China dependence of, 97; credit demand in, 27, 28, 29; currency rates in, 59, 91, 120; current account balance in, 60, 91; economic growth in, 21, 25, 71; as emerging market, 6; exports to China, 94; FDI to, 75; financial crisis (1999), 9, 36, 42, 62, 89–90, 96; import-substituting industrialization in, 69; infrastructure development in, 125; recession in, 120; state power in, 29

Bretton Woods regime, 12–13, 21–22, 31, 69, 110, 128

Buchheit, Lee, 41

Bulgaria, FDI to, 74

Camdessus, Michel, 78–79, 116

Cameroon, as emerging market, 6

Capital controls: and currency rates, 127–28; in emerging markets, 116; and FDI, 115; and IMF, 116–17. See also specific countries

Capital flight, 32–33

Capital flow management measures (CFMs), 11, 117

Capital flows: and credit demand, 26; “cycle” of, 11; and emerging markets, 72–76, 79–81; and financial crises, 41; and globalization, 9–13. See also Liberalization of capital flows; Liquidity is...

Table of contents

• Cover
• Series Page
• Title Page
• Copyright
• Dedication
• Contents
• Acknowledgments
• Introduction: What’s Past Is Prologue
• One: Enter Finance: The 1970s
• Two: Exit Finance: Two Decades of Crisis
• Three: Explaining Emerging Markets
• Four: Thank You, China!
• Five: Toward a Beijing Consensus
• Notes
• Index