Financial Governance in East Asia: Policy Dialogues, Surveillance and Cooperation (Routledgecurzon Studies in the Growth Economies of Asia)

Book Cover......Page 1
Half-Title......Page 2
Title......Page 7
Copyright......Page 8
Contents......Page 9
Figures......Page 11
Tables and boxes......Page 12
Contributors......Page 14
Preface......Page 16
Abbreviations......Page 18
1 Policy dialogue, surveillance and financial cooperation in East Asia......Page 22
POLICY DIALOGUE AND SURVEILLANCE IN EAST ASIA......Page 23
INSIGHTS FROM OTHERS’ EXPERIENCE WITH POLICY DIALOGUE AND SURVEILLANCE......Page 24
FINANCIAL COOPERATION......Page 29
UNILATERAL, REGIONAL AND GLOBAL RESPONSES TO CRISES......Page 31
END PIECE......Page 35
INTRODUCTION......Page 36
Policy coordination......Page 37
Globalisation......Page 38
Avoiding territorial exclusivity......Page 41
Determining the numbers......Page 42
Europe......Page 43
Bank for International Settlements and International Monetary Fund......Page 44
East Asian regional institutions......Page 45
Surveillance......Page 48
Macro policy......Page 49
Technical cooperation......Page 50
Globalisation......Page 52
CONCLUSIONS......Page 53
NOTES......Page 55
REFERENCES......Page 56
IMF PERSPECTIVES......Page 57
ADB PERSPECTIVES......Page 61
SOME ISSUES......Page 64
ENDNOTE......Page 66
REFERENCES......Page 67
INTRODUCTION......Page 69
Monetary policy......Page 70
Fiscal policy......Page 75
Structures for economic stability in a global context......Page 78
Discretion versus rules......Page 79
Institutional support and procedural rules......Page 80
Openness, transparency and accountability......Page 81
Structures for monetary policy......Page 83
Structures for fiscal policy......Page 87
Coordination of monetary and fiscal policy......Page 90
REGIONAL INTEGRATION: STRUCTURES FOR ECONOMIC COOPERATION AFTER THE MAASTRICHT TREATY......Page 91
Institutional structures in the European Union......Page 92
CONCLUSION......Page 99
REFERENCES......Page 100
INTRODUCTION......Page 102
MARKET INTEGRATION......Page 103
REGIONAL INSTITUTIONS......Page 107
DOMESTIC POLITICS......Page 109
CREDIBILITY AND COMMITMENT STRATEGIES......Page 110
STRUCTURAL REALISM......Page 111
REGIONAL POLITICS......Page 112
SYSTEMIC INSTABILITY......Page 113
CONCLUSION......Page 115
NOTES......Page 116
REFERENCES......Page 117
The IMF, the OECD and the G-7......Page 120
The role of emerging market economies......Page 121
The European Payments Union......Page 124
European Monetary Cooperation Fund......Page 128
Arab Monetary Fund......Page 135
Latin American Reserve Fund......Page 140
The Asian situation......Page 145
CONCLUSIONS......Page 150
NOTES......Page 151
REFERENCES......Page 153
INTRODUCTION......Page 155
The 1997–98 crisis......Page 156
Reform of the international financial architecture......Page 157
Creating a new regional financial architecture......Page 159
Economic interdependence in the region......Page 162
Information sharing and regime setting for regional financial cooperation......Page 165
Challenges for closer financial cooperation in East Asia......Page 166
EAST ASIAN INITIATIVES FOR REGIONAL FINANCIAL COOPERATION......Page 167
Regional policy dialogue and surveillance mechanisms......Page 168
Regional financing facilities......Page 172
Regional exchange rate arrangement......Page 175
Moving forward......Page 176
NOTES......Page 180
REFERENCES......Page 183
INTRODUCTION......Page 186
A cross-generational representation......Page 187
Welfare costs of crisis......Page 190
Crises as market discipline—ex ante vs ex post efficiency......Page 193
‘Orderly workout’ mechanisms......Page 195
Rules vs discretion in the international financial architecture......Page 199
‘Rushes for exits’......Page 200
IMPLICATIONS FOR EAST ASIA......Page 202
NOTES......Page 203
REFERENCES......Page 204
RATIONALE AND BACKGROUND FOR REGIONAL FINANCIAL COOPERATION......Page 206
Rationale for regional financial arrangements......Page 207
IMF facilities......Page 210
Credit facilities of the European Community4......Page 214
ASEAN swap arrangement......Page 218
REGIONAL LIQUIDITY FACILITIES BEYOND THE CMI......Page 219
Extended network of bilateral swap arrangements......Page 220
Establishment of the Asian Arrangements to Borrow......Page 227
CONCLUSION......Page 228
NOTES......Page 230
REFERENCES......Page 231
INTRODUCTION......Page 233
Literature review......Page 234
Specification......Page 236
Financial development indicators......Page 237
Capital controls......Page 238
Financial regulation......Page 239
RESULTS......Page 242
CAVEATS......Page 244
BANK-CENTRED FINANCIAL DEVELOPMENT: A DISAGGREGATE LOOK......Page 245
EQUITY MARKETS AND AN ALTERNATIVE MEASURE OF CAPITAL CONTROLS......Page 246
CONCLUSION......Page 247
DATA APPENDIX......Page 249
NOTES......Page 252
REFERENCES......Page 253
INTRODUCTION......Page 255
Reserve build-up......Page 257
Foreign bank entry and contingent credit lines......Page 260
IMF contingent credit lines......Page 261
Contagion: regional more than global......Page 262
CONTAGION: DEFINITIONS AND TRANSMISSION CHANNELS......Page 264
Financial sector spillovers and pure contagion......Page 265
REGIONAL RESPONSES: THE CHIANG MAI INITIATIVE......Page 268
CONCLUSION......Page 269
NOTES......Page 271
REFERENCES......Page 274
INTRODUCTION......Page 279
Relative size of IMF resources......Page 280
Changing nature of balance of payments crises......Page 282
Future needs to supplement crisis resolution resources......Page 287
REGIONAL FINANCING ARRANGEMENTS AND THE IMF......Page 290
A regional facility and the IMF......Page 291
Complementarity between a regional fund and the IMF......Page 293
A regional liquidity facility: a ‘first line’ in concentric lines of defence?......Page 294
Difficulties of diagnosing a ‘liquidity’ crisis......Page 295
The critical importance of credibility......Page 297
CONCLUSION......Page 298
NOTES......Page 299
REFERENCES......Page 301
THE AGE OF REGIONALISM?......Page 303
ARE GLOBALISM AND REGIONALISM MUTUALLY EXCLUSIVE?......Page 304
THE BASEL PROCESS......Page 305
The influence of market participants......Page 307
Cooperation among Basel-based committees......Page 308
How can we reconcile global standards with regional interests?......Page 309
Is it possible to incorporate regional elements in the Basel Process?......Page 310
Do we need a regional regulatory institution?......Page 311
NOTES......Page 312
REFERENCES......Page 313
Index......Page 315