Capital mobility and monetary policy: Australia, Japan, and New Zealand

The past two decades, but particularly the 1980s, have seen dramatic changes in financial markets characterized by the dissolution of traditional institutional structures and the proliferation of financial instruments and the ease with which they can be obtained and used. These developments have greatly enhanced capital mobility around the world, in part by better mediating the preferences of savers and investors, in part by increasing information about investment opportunities, and in part by greatly limiting the ability of authorities to effectively restrict capital movements with direct controls.