Dating the integration of world capital markets error validating check constraint
Given the difficulties involved and the budgetary constraints faced by statistical agencies in the public sector, several questions arise: What is the current need for data on international capital transactions? With the support of the Bureau of Economic Analysis (BEA) of the U. Department of Commerce, the Panel on International Capital Transactions was convened to examine the changes in the global financial environment, assess public and private needs for data on international capital transactions, review the adequacy of existing data, and consider alternative collection methods. The panel's goal has been to develop recommendations for the collection of data on U. international capital transactions to help ensure that the data are accurate, timely, relevant, cost-effective, and useful for decision making in the years to come. Although the changing global trade and financial environment has led several international organizations to undertake initiatives to improve the concepts and methods of compiling international economic statistics, none of the resulting studies focuses specifically on data on U. Appendix B summarizes the results of the panel's canvass of data compilers, filers, and users on the adequacy of the existing data system. Other terms commonly used in the field, and in this report, are "offshore," "abroad," and "overseas," all of which are the same as foreign for purposes of international capital transactions, which are also sometimes called cross-border transactions.
Subsequent research grants from the Federal Reserve Board and the U. This study is a follow-on to the one completed by a previous panel of the Committee on National Statistics. Throughout this report, following the balance-of-payments framework for current U. The rapid expansion and integration of world financial markets since the late 1970s can be attributed to several factors.
In addition, competition has grown among financial institutions of various types and in various countries, whose portfolio management strategies in volatile markets have resulted in new products and new modes of operation. The trend toward financial deregulation accelerated in the early 1970s, when the government controls on financial activities that had been established in the 1950s and 1960s and earlier were proving ineffective and causing serious inefficiencies in the allocation of capital and the operation of monetary policy.
Even the most cursory review of major international economic trends over the past several decades shows there have been revolutionary changes in world financial markets.
During the 1950s and 1960s, financial institutions and their regulatory structures in major industrial countries evolved in relative isolation from external developments.
There has been a major shift, relatively, from banks to nonbank financial intermediaries, such as brokerage houses, securities firms, insurance companies, and pension funds. Data comparability is important not only for international economic policy coordination, but also for data exchanges between the United States and other countries. Federal Reserve system, as well as the International Monetary Fund, the Bank for International Settlements, the Bank of England, the Bank of Japan, and the Deutsche Bundesbank.
There has also been a shift from loans to securities and a rise in the use of foreign financial centers. transactions involve many other developed and developing countries, and the statistical problems of the U. The panel believes this report will contribute to a better understanding of the global financial flows that have come to characterize the rapidly evolving global economy. It con-suited experts in the accounting profession and other expert groups currently examining the changes in global financial markets and the treatment of complex financial transactions.