Portfolio flows channelled via institutional investors were the most dynamic capital flows to emerging markets in the 1990s. We use an asymmetric information framework to derive five propositions about the effects of the activities of foreign institutional investors on emerging markets. We...

The recent debate about a new international financial architecture, i.e. a reform of the international financial system, is strongly influenced by current events. In contrast to this the paper puts the problem into the framework of Ordnungspolitik. Beginning with the development of the recent...

Portfolio flows channeled via institutional investors were the most dynamic capital flows to emerging markets in the 1990s. We use an asymmetric information framework to derive five propositions, to integrate empirical evidence and to suggest policy implications. Opaque information in emerging...