Reforming the International Financial Architecture: An Asian Perspective

  • M. G. Quibria
  • Joy Quitazol
Chapter

Abstract

In the wake of the Mexican financial crisis in 1994–95, policy-makers began to realize that global financial institutions and rules have not kept pace with the speed of integration in international capital markets. Although it had evolved over the years, the existing Bretton Woods architecture had originally been designed for a world where capital mobility was limited. Since the Halifax Summit of the G7 leaders in 1995, but especially after the Asian financial crisis, official discussions on an international financial architecture have proliferated and an increasing number of organizations have become involved. In addition, a number of individual academics and other commentators have put forward their own reform proposals. The result is a plethora of ideas.

Keywords

Exchange Rate Corporate Governance International Monetary Fund Capital Flow Capital Mobility 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Asian Development Bank (1999) Asian Development Outlook 1999, Hong Kong, Oxford University Press for the Asian Development Bank.Google Scholar
  2. Bagehot, W. (1873) Lombard Street: A Description of the Money Market, London, William Clowes and Sons.Google Scholar
  3. Bagwell, K. and Staiger, R. W. (1997) ‘Multilateral Tariff Cooperation during the Formation of Free Trade Areas’, International Economic Review, 38(2):291–319.CrossRefGoogle Scholar
  4. Bhagwati, J. (1998) ‘The Capital Myth: The Difference between Trade in Widgets and Dollars’, Foreign Affairs, 77 (May/June):7–12.CrossRefGoogle Scholar
  5. Buiter, W. and Siebert, A. (1998) ‘UNDROP or You Drop: A Small Contribution to the New International Financial Architecture’, unpublished manuscript, Department of Economics, Yale University, New Haven, CT.Google Scholar
  6. Calomiris, C. (1998a) ‘The IMF’s Imprudent Role as Lender of Last Resort’, Cato Journal, 17(3):275–95.Google Scholar
  7. Calomiris, C. (1998b) ‘Blueprints for a New Global Financial Structure’, unpublished manuscript, Columbia University, New York.Google Scholar
  8. Cole, H. and Kehoe, T. (1998) ‘A Self-Fulfilling Debt Crisis’, Staff Report, 211 (July). Federal Reserve of Minneapolis.Google Scholar
  9. Cooper, R. (1984) ‘A Monetary System for the Future’, Foreign Affairs, 63:166–184.CrossRefGoogle Scholar
  10. Council on Foreign Relations (1999) ‘International Financial Architecture’, a press release (17 September). [Online]. Available from: http://www.foreignrelations.org/public/pubs/IFAPressRelease.html/Google Scholar
  11. Dixit, A. (1996) The Making of Economic Policy: A Transaction-Cost Politics Perspective, Cambridge, Massachusetts Institute of Technology.Google Scholar
  12. Dornbusch, R. (1998) ‘After Asia: New Directions for the International Financial System’, unpublished manuscript, Massachusetts Institute of Technology, Boston.Google Scholar
  13. Edwards, S. (1998) ‘Capital Flows, Real Exchange Rates and Capital Controls: Some Latin American Experiences’, Working Paper No. 6800 (November), National Bureau of Economic Research, Cambridge, MA.CrossRefGoogle Scholar
  14. Eichengreen, B. (1999a) Toward a New International Financial Architecture: A Practical Post-Asia Agenda, Washington, The Institute for International Economics.Google Scholar
  15. Eichengreen, B. (1999b) ‘Taming Capital Flows’, a paper prepared for a special issue of World Development edited by Irma Adelman (August).Google Scholar
  16. Fairlamb, D. (1999) ‘International–Special Report: A Big Brouhaha in the Banking World’, Business Week (4 October). [Online]. Available from: http://www.businessweek.com/1999/99_40/b3649036.htm/
  17. Fischer, S. (1999) ‘On the Need for an International Lender of Last Resort’, paper presented at the annual meetings of the American Economic Association and the American Finance Association, 3 January, New York.Google Scholar
  18. Frankel, J. A. (1999) ‘No Single Currency Regime is Right for All Countries or at All Times’, Working Paper no. 7338 (September). National Bureau of Economic Research, Cambridge, Massachusetts. [Online]. Available from: http://www.nber.org/papers/w7338/CrossRefGoogle Scholar
  19. G22.
    (Group of 22) (1998a) ‘Report of the Working Group on Transparency and Accountability’, International Monetary Fund, Washington, D.C.Google Scholar
  20. G22.
    (Group of 22) (1998b) ‘Report of the Working Group on Strengthening Financial Systems’, International Monetary Fund, Washington, D.C.Google Scholar
  21. Garten, J. (1998) ‘In This Economic Chaos, A Global Central Bank Can Help’, International Herald Tribune 8 (25 September).Google Scholar
  22. Giannini, C. (1999) ‘Enemy of None but Friend of All? An International Perspective on the Lender of Last Resort Function’, Working Paper WP/99/10, Washington, DC, International Monetary Fund.Google Scholar
  23. Hamada, K. (1999) ‘Incentive Mechanisms Surrounding International Financial Institutions’, Asian Development Review, 16(1):Google Scholar
  24. Ito, T., Ogawa, E. and Sasaki, Y. N. (1999) ‘Establishment of the East Asian Fund’, in The Institute for International Monetary Affairs (ed.) Stabilization of Currency and Financial Systems in East Asia and International Financial Coordination, Tokyo, Institute for International Monetary Affairs, Chapter 3.Google Scholar
  25. Kaufman, H. (1998) ‘Preventing the Next Global Financial Crisis’, Washington Post A17 (28 January).Google Scholar
  26. Krugman, P. (1998) ‘Saving Asia: It’s Time to Get Radical’, Fortune (7 September): 74–80.Google Scholar
  27. Meltzer, A. (1998) ‘Asian Problems and the IMF’, Testimony prepared for the Joint Economic Committee, US Congress, 24 February.Google Scholar
  28. Mishkin, F. (1994) ‘Preventing Financial Crises: An International Perspective’, Working Paper no. 4636 (February), Cambridge, MA, National Bureau of Economic Research.CrossRefGoogle Scholar
  29. Miyazawa, K. (1998) ‘Towards a New International Financial Architecture’, a speech delivered at the Foreign Correspondents Club of Japan, 15 December.Google Scholar
  30. Morris, S. and Shin, H. Y. (1998) ‘Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks’, American Economic Review, 88 (June):587–97.Google Scholar
  31. Mundell, R. A. (1968) International Economics, New York, Macmillan.Google Scholar
  32. Quibria, M. G. (1999) ‘The Case for Asian Fund’, Asia Week (25 June):56.Google Scholar
  33. Rodrik, D. (1998) ‘Who needs capital account liberalization?’, in P. B. Kenen (ed.) Should the IMF Pursue Capital Account Convertibility? Essays in International Finance No. 207. Princeton, NJ, Princeton University, Department of Economics, International Finance Section.Google Scholar
  34. Rossi, M. (1999) ‘Financial Fragility and Economic Performance in Developing Economies: Do Capital Controls, Prudential Regulations and Supervision Matter?’, Working Paper WP/99/66, Washington, DC, International Monetary Fund.Google Scholar
  35. Sachs, J. (1995) ‘Do We Need an International Lender of Last Resort?’, paper prepared for the Frank Graham Memorial Lecture, Princeton University.Google Scholar
  36. Sachs, J. (1998) ‘Fixing the IMF Remedy’, The Banker, 148 (February):16–18.Google Scholar
  37. Soros, G. (1998) The Crisis of Global Capitalism, New York, Public Affairs Press.Google Scholar
  38. Summers, L. (1999) ‘Reflections on Managing Global Integration’, Lecture delivered at the Annual Meeting of the Association of Government Economists, New York, 4 January.Google Scholar
  39. Tobin, J. (1978) ‘A Proposal for International Monetary Reform’, Eastern Economic Journal, 4:153–9.Google Scholar
  40. United Nations (1998) ‘Bretton Woods and UN Move Closer’, Development Update, 25 (September–October).Google Scholar
  41. Valdes-Prieto, S., and Soto, M. (1997) ‘The Effectiveness of Capital Controls: Theory and Evidence from Chile’, unpublished manuscript, Universidad Catholica de Chile, Santiago.Google Scholar
  42. Williamson, J. (1998) ‘Crawling Bands or Monitoring Bands: How to Manage Exchange Rates in a World of Capital Mobility’, International Finance 1 (October):59–80. Washington, The Institute for International Economics. [Online]. Available from: http://www.iie.com/TESTMONY/ifwills2.htm/CrossRefGoogle Scholar
  43. World Bank (1999) ‘UN Calls for Body to Monitor Quicksilver Capital’, Development News (9 April). [Online]. Available from: http://wblnoo18.worldbank.org/news/devnews.nsf/

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 2001

Authors and Affiliations

  • M. G. Quibria
  • Joy Quitazol

There are no affiliations available

Personalised recommendations