|Antonio H.D. Yan, during his presentation at the FCE Teachers Permant Seminar|
Antonio H.D. Yan, professor at the Economic Sciences School of the Francisco Marroquín University since September 2005, presented the study titled Does capital mobility finance or cause a current account imbalance?, at the session of the Teachers Permanent Seminar of that academic unit, held on March 22 of 2006.
The study of professor Yan will be published in the Quarterly Review of Economics and Finance, and his presentation, at the UFM, can be seen
In the article, the author comments that depending on the response politics of each country regarding capital flow, the results may vary, regarding the causality between the current account and the financial account.
The financial account, as its name says, serves for financing the off-balance in the current account of developed countries; meanwhile the capital flow pushes the current account towards an unbalanced state in emerging economies.
Additionally, the causal results between the financial account components and the current account show that every component has different causal relations with the current account. This means that the countries without a sophisticated and solid financial system, to canalize funds towards an appropriate location, should exercise caution and not remove abruptly their restrictions to capital mobility. The rhythm and sequence of the financial account liberalization should be monitored.
Antonio Ho-don Yan is professor of Economics at the Francisco Marroquín University and has directed the Economics Department of Feng Chia University in Taiwan. He is an expert in international finances, international commerce, macroeconomics, monetary politics and theory and Asia´s economic development.
Yan has a PhD from the State University of New York; a masters degree at the Chinese Culture University, and a B.S. from the Chung Yuan Christian University.
At the presentation of Yan´s study attended professors and the Dean of the Economic Sciences School, Wenceslao Giménez-Bonet.