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Download or read book Liberalization of Trade in Financial Services and Financial Sector Stability (Empirical Approach) written by Mr.Alexei Kireyev and published by International Monetary Fund. This book was released on 2002-08-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper explores empirically the links between the WTO-driven liberalization of trade in financial services and the stability of national financial systems. Econometric testing of indicators intended to proxy financial sector stability-subdivided into exchange rate and banking sector stability-suggests that opening of the financial sector is an efficient policy instrument at the disposal of the authorities for achieving a variety of macroeconomic goals. While liberalization is found to be broadly conducive to stability, the outcome of liberalization on exchange rate stability is less predictable than on banking sector stability.