In Memoriam

OECD Code of Liberalisation of Capital Movements

“…Moreover, there is evidence that changes in the intensity of the control regime served as a mechanism for correcting balance of payments imbalances. 9 Nevertheless, while the Bretton Woods system was characterised by greater exchange rate flexibility than earlier regimes, adjustments were still relatively infrequent, and gold was not entirely out of the picture as the dollar remained convertible into gold.…”

“…Čihák, Holub, 2000). 9 Such a move might have made the recession shorter and the undershooting of inflation targets smaller.…”

“…The incentives to borrow remained unchanged, economic policy in general did not adequately restrain domestic demand or price and income expectations. 75 From the companies point of view equity capital was heavily taxed relative to debt and thus debt continued to be the cheapest form of external finance. Until the beginning of 1990s households' interest payments were tax deductible at a high marginal tax rate -including interest payment on consumption loans.…”

“…It also had one of the densest and most advanced ATM networks and point of sale terminals in the world. 9 Until the latter half of the 1980s, a major shortcoming of the financial system was the absence of an efficient money market. In addition the Finnish bond market was virtually nonexistent until the early 1980s.…”

OECD Code of Liberalisation of Capital Movements

“…Additionally, some members entered with a special status -under a clause allowing them to derogate from most Codes obligations on account of lagging economic and financial development -and consequently did not assume the full obligations under the Code. 9 This special arrangement was gradually given up as the countries concerned gained in economic development and stability.…”