Many of the best financial firms 20 years hence will rely on intellectual more than monetary capital.
Kalter retired from the International Monetary Fund in June 2007 as Assistant Director of the Monetary and Capital Markets Department.
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"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track, " says Jose Vinals, director of the fund's monetary and capital markets department.
Asset price inflation, an older term for irrational exuberance found in the writings of Austrian school economists, is a monetary virus infecting capital markets.
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In particular, the extreme mobility of modern financial capital makes monetary policy more difficult to conduct.
But the political capital from monetary stimulus will be fleeting.
New thinking at the International Monetary Fund now accepts that capital controls are sometimes necessary to prevent destabilizing capital flows.
Most economists see the job falling naturally to central banks, because of their closeness to markets and because of the link between capital standards and monetary policy through the price of credit.
Mr Lopes insists that tight monetary policy will slow the capital outflow, because it is no longer profitable to borrow reais to buy dollar-denominated Brazilian bonds, as it was when bond yields soared last month.
American innovation and productivity, underscored by low taxes and stable monetary value, have attracted massive capital flows.
For some months now, the big emerging markets of Brazil, Russia, India and China have been discussing providing more capital to the International Monetary Fund above their current quota in order to bail out Europe.
But the main focus is a discussion of global capital markets and the international monetary system.
Some are already timidly criticizing the International Monetary Fund, the speculators, the capital flows across borders, the right of the self-appointed market forces to discipline elected governments.
The combination of a massive commodity windfall and extremely loose monetary policy in advanced economies have channeled huge capital flows to these economies.
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The dramatic turnaround in trade balances, combined with loans from the International Monetary Fund and a cautious resumption of private capital inflows, has allowed some governments to start rebuilding foreign reserves.
Mr Greenspan's greatness should be measured by his successful adaptation of American monetary policy to this world now dominated by capital flows, and especially at a time of increasing challenges from a growing dollar-zone through China and other dollar-linked emerging economies.
Singapore's move also comes as authorities across Asia grapple with asset-price inflation amid capital inflows from developed economies, following monetary easing programs announced in recent months by major central banks including the U.S. Federal Reserve.
The inflation (actually, the tightening of monetary policy to counteract it) is combining with other capital-flow dynamics to create acute concern about currencies.
Swings in cross-border capital flows all too frequently dominate a range of monetary, regulatory, fiscal- and social-policy decisions because the broad-brush approach also characterises many international investors in Africa.
The International Monetary Fund (IMF) will also hold talks in the US capital over the weekend.
To some degree, this indicates the capital markets expect an orderly withdrawal from the massive global monetary stimulus measures currently in place.
In that sense, it should be asked if the Fed's supposedly easy monetary policies are in fact fostering a "tight" market for capital.
Daniel Oliver Jr. is the founder of Myrmikan Capital, LLC, and a director of the Committee for Monetary Research and Education.
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Keep in mind that, as it stands, Cyprus is suffering deflationary effects, bank closure costs, capital controls, yet without getting the redenomination benefits and independent monetary policy benefits of leaving the euro.
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The Finance Minister pushed forth with measures to slow currency appreciation including capital controls, finally getting traditionally orthodox institutions like the International Monetary Fund and managing director Dominique Strauss-Khan to lend their support.
Commodities have been rising on account of demand and loose monetary policy in the US, in particular, where near-zero capital costs have weakened the dollar and turned money managers onto hard assets like oil, gold, and agricultural commodities.
The villains of the Depression were the trade-killing, international-capital-flow-strangling Smoot-Hawley Tariff, an overly tight monetary policy and a catastrophic tax increase.
First monetary: you have to shut the banks and ATMs for a week, impose capital controls, and re-open them with new currency.
The new measures mean that Cyprus is the first eurozone nation to impose capital controls - the absence of which is a fundamental reason behind the monetary union of the 17 members of the euro bloc - since the debt crisis began.
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