47. The fluctuations in financial markets, caused by speculative short term capital flows, threatened the healthy development of the world economy.

Concerned about the excessive volatility of speculative short term capital flows and the contagion effects in financial markets in times of crisis,

It should be added that financial capital will also lodge in those countries or places which offer and deliver greater speculative flexibility.

Taming Speculative Capitalism

To address in the relevant international fora the urgency of measures at the global level to monitor short term capital flows, particularly in respect of the sources and movement of speculative capital, and to protect the autonomy of developing countries in managing capital flows and choosing their capital account regime.

Developments along those lines would enable the world to benefit fully from the considerable contributions that international capital flows could make to development financing while minimizing the risks posed by unbridled speculative capital movements to recipient countries.

(i) Establishment of a fiscal policy to redistribute income and heavy taxation of unproductive and speculative financial capital with the reduction of taxes on basic consumer goods

The surge in recent years in the flows of speculative capital into and out of commodity markets for financial assets has tended to accentuate commodity price instability during recent years.

Developing countries should not be pushed or pressured into premature financial liberalization, as this would deny them the option of protecting their economies from international financial instability and volatile speculative capital flows.

Also, transparency in international lending and borrowing were crucially important in order to deal with excessive short term and speculative capital flows and problems of corruption and debt management in the economy.

The Chilean effort to limit vulnerability to speculative outflows by limiting speculative inflows is the best known in this class of policy measures.

In addition to having a suboptimal exchange rate arrangement, the more vulnerable ESCWA member countries are unable to defend their currencies under the current conditions of free capital movement and intensified international speculative activities.

Weak local industry, in turn, reinforces the tendency of enclaves to rely on imported capital and intermediate and consumer goods, as well as further encouraging the channelling of savings into more speculative high return activities.

While such efforts had promoted their integration into the world capital market, they had also exposed the fragile financial systems of such countries to strong speculative pressures which had recently led to serious financial crises.

Second, many argue that raising interest rates would trigger a flood of speculative capital from low yielding advanced economies. With the PBOC unable to sterilize the inflows, upward pressure on the renminbi s exchange rate would threaten competitiveness.

These, together with the external shocks triggered by the volatility of speculative capital flows, drastic terms of trade adjustments and even inflows of remittances, make the potential benefits of structural adjustment and stabilization policies difficult to attain.

In the view of Iraq, the claim unit is overly speculative.

(ii) Heavy duties to be levied on speculative international financial transactions

In contrast to the other two psychological causes, speculative contagion has a natural end. A speculative bubble, sustaining itself solely by reaction to price increases, cannot go on forever.

Owing to its underdeveloped financial system and inefficient capital markets, China would be unable to withstand an attack akin to those that triggered the Asian financial crisis without the protection of capital controls. Already, even without a major speculative attack, the exchange rate and interest rate arbitrage facilitated by renminbi internationalization have imposed significant losses on China.

Nonetheless, sound policies were not in themselves sufficient to ward off speculative attacks.

In such a speculative climate, the Group conducted an audit of FACI air assets.

On the other hand, the estimate of the amount required would have to be speculative.

Nicolas Sarkozy, the leading contender in the French presidential election, recently lashed out against what he called speculative capitalism, and says he wants to moralize the financial zone created by the euro. What does Sarkozy mean by speculative capitalism?

That one size fits all approach meant that interest rates in southern European countries were too low before 2009, and too high in northern Europe. A gold standard rule would have produced higher rates for the southern European borrowers, which would have attracted funds to where capital might be productively used, and at the same time acted as a deterrent against purely speculative capital flows.

48. The unprecedented levels of foreign direct investment and private capital flows were also welcome, since they helped sustain the economic development of many developing countries. It was unfortunate, however, that most of the investments were concentrated in only a few countries, mainly in East Asia, and that the volatile and speculative nature of private capital flows were a threat to the stability of the target economies.

The mere existence of such a facility would in many cases be enough to discourage speculative shocks.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital. All of these are productive, but each has a distinctive role.

Instead, the profitable carving up of healthy companies has freed up capital to flow to intangible assets, houses and other forms of real estate, fueling a speculative crisis. In short, the global economy replete with get rich quick schemes, overpaid bosses, and corporate fraud has lost its moral bearings.

In the cities, a lot of the cost of property is actually wrapped up in its speculative value.

The expected profits can be held down by allowing exchange rates to be changed before speculative pressures build.

Third, and no less important, is the speculative contagion that underlies any bubble. The current boom has seen contagion

A tax on speculative transactions was therefore necessary to stabilize financial markets in the developing countries and finance development.

Capital

Capital!

What matters here isn't technical capital, it's social capital.

The notion that the prenatal transmission of PTSD risk is adaptive is still speculative, but I find it rather poignant.

Most attention has focused on the requirement that financial investors sequester a fraction of their capital inflow with the central bank at no interest for one year (even if the funds are removed in less than one year).16 While this technique appears to have limited speculative inflows initially, it was increasingly evaded.

Capital Shrugged

Initial capital

Capital flows

Capital services

Capital expenditures

Working capital.

Capital District