Toward a regional financial architecture the East Asian experience with a focus on defense
This chapter traces the political economic environment in which the East Asian regional financial architecture emerged, from its beginnings in the roots of the Asian financial crisis of the late 1990s to today's Chiang Mai Initiative and other formal and informal mechanisms. A series of overlap...
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| Veröffentlicht in: | South-South regional financial arrangements |
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| 1. Verfasser: | |
| Format: | UnknownFormat |
| Sprache: | eng |
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2022
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Tag hinzufügen | Zusammenfassung: | This chapter traces the political economic environment in which the East Asian regional financial architecture emerged, from its beginnings in the roots of the Asian financial crisis of the late 1990s to today's Chiang Mai Initiative and other formal and informal mechanisms. A series of overlapping elements were initiated through meetings at the ministerial level, leading to the creation of formal mechanisms for crisis prevention, management, and resolution including establishing regional forums and networks, economic surveillance and early warning systems, peer review and pressure to maintain healthy fundamentals. Frequent and regular meetings by central bank officials and finance ministries helped to make progress, leading to visible and significant achievements including the Chiang Mai Initiative Multilateralization (CMIM) fund and the ASEAN+3 Macroeconomic Research Organization. These successes notwithstanding, the chapter argues that the focus has been too much on defensive elements in the financial architecture, at the expense of other more developmental pillars. Moreover, reliance on local currency regional capital markets does not reduce risk as much as some believe because today’s highly liberalized financial markets mean that domestic bonds may have international owners so countries are still exposed to large swings in capital flows and exchange rates, that reproduce old forms of vulnerability. |
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| ISBN: | 9783030645755 |