This volume provides an overview of the global regulatory landscape from the perspective of Asian emerging markets. The contributors discuss the many challenges ahead in developing sound and flexible financial regulatory systems for emerging market economies. The challenges are heightened by the rising integration of these economies into global trade and finance, the growing sophistication of their financial systems as globalization and emergence processes accelerate, and their potential vulnerability to instability arising from the financial markets in the advanced economies.
The contributors provide guidance about pitfalls to be avoided, general principles that should guide the creation of sound regulatory systems, and valuable analytic perspectives about how to continue to broaden the financial sector and innovate while still maintaining financial and macroeconomic stability.
Masahiro Kawai is dean and CEO of the Asian Development Bank Institute. Before joining ADBI, he served as head of the bank's Office of Regional Economic Integration. He was a professor at the University of Tokyo's Institute of Social Science and, from 1998 to 2001, was chief economist for the World Bank's East Asia and the Pacific Region.
Eswar S. Prasad holds the New Century Chair in International Economics at Brookings. He is the Tolani Senior Professor of Trade Policy at Cornell University and a research associate at the National Bureau of Economic Research. He was previously head of the Financial Studies Division and the China Division at the IMF. They are also the editors of the first two series volumes, Financial Market Regulation and Reforms in Emerging Markets and Asian Perspectives on Financial Sector Reforms and Regulation.
In this informative volume, the second in a series on emerging markets, editors Masahiro Kawai and Eswar Prasad and the contributors analyze the major domestic macroeconomic and financial policy issues that could limit the growth potential of Asian emerging markets, such as rising inflation and surging capital inflows, with the accompanying risks of asset and credit market bubbles and of rapid currency appreciation. The book examines strategies to promote financial stability, including reforms for financial market development and macroprudential supervision and regulation.
In this timely volume Masahiro Kawai, Eswar Prasad, and their contributors offer a systematic overview of recent developments in—and the latest thinking about—regulatory frameworks in both advanced countries and emerging markets. Their analyses and observations clearly point out the challenges to improving regulation, efficiency of markets, and access to the fi nancial system. Policymakers and financial managers in emerging markets are struggling to learn from the crisis and will need to grapple with some key questions as they restructure and reform their financial markets:
• What lessons does the global financial crisis of 2007–09 offer for the establishment of efficient and flexible regulatory structures?
• How can policymakers develop broader financial markets while managing the associated risks?
• How—or should—they make the formal financial system more accessible to more people?
• How might they best contend with multinational financial institutions?
This book is an important step in getting a better grasp of these issues and making progress toward solutions that strike a balance between promoting financial market development and efficiency on the one hand, and ensuring financial stability on the other.
Version 2.0, Updated and Expanded, with a New Afterword
We all sense it—something big is going on. You feel it in your workplace. You feel it when you talk to your kids. You can’t miss it when you read the newspapers or watch the news. Our lives are being transformed in so many realms all at once—and it is dizzying.
In Thank You for Being Late, version 2.0, with a new afterword, Thomas L. Friedman exposes the tectonic movements that are reshaping the world today and explains how to get the most out of them and cushion their worst impacts. His thesis: to understand the twenty-first century, you need to understand that the planet’s three largest forces—Moore’s law (technology), the Market (globalization), and Mother Nature (climate change and biodiversity loss)—are accelerating all at once. These accelerations are transforming five key realms: the workplace, politics, geopolitics, ethics, and community. The year 2007 was the major inflection point: the release of the iPhone, together with advances in silicon chips, software, storage, sensors, and networking, created a new technology platform that is reshaping everything from how we hail a taxi to the fate of nations to our most intimate relationships. It is providing vast new opportunities for individuals and small groups to save the world—or to destroy it.
With his trademark vitality, wit, and optimism, Friedman shows that we can overcome the multiple stresses of an age of accelerations—if we slow down, if we dare to be late and use the time to reimagine work, politics, and community. Thank You for Being Late is an essential guide to the present and the future.
The RCEP and the TPP are accompanied by other mega-regional integration processes developing elsewhere in the world, including the Transatlantic Trade and Investment Partnership for the European Union and the United States, and the Pacific Alliance among four Latin American member states. Meanwhile, APEC is also striving to meet its Bogor Goal targets and create a Free Trade Area of the Asia-Pacific.
Each of these mega-regionals aims to achieve greater trade and investment liberalization and facilitation and more harmonized trade and investment rules so that all member economies can participate in the global value chain of production. Instead of undermining, these regional exercises can be building blocks for a more liberal global trading system supported by the World Trade Organization.
This book ruminates on these regional agreements, their economic and strategic rationales and challenges during negotiations and afterwards. The book brings together eminent scholars and experts to deepen our understanding of the complex nature of the mega-regional trade agreements and their implications. It is useful both for the academic and research community and for policymakers who focus on trade and economic cooperation issues.
Eswar Prasad examines how the dollar came to have a central role in the world economy and demonstrates that it will remain the cornerstone of global finance for the foreseeable future. Marshaling a range of arguments and data, and drawing on the latest research, Prasad shows why it will be difficult to dislodge the dollar-centric system. With vast amounts of foreign financial capital locked up in dollar assets, including U.S. government securities, other countries now have a strong incentive to prevent a dollar crash.
Prasad takes the reader through key contemporary issues in international finance—including the growing economic influence of emerging markets, the currency wars, the complexities of the China-U.S. relationship, and the role of institutions like the International Monetary Fund—and offers new ideas for fixing the flawed monetary system. Readers are also given a rare look into some of the intrigue and backdoor scheming in the corridors of international finance.
The Dollar Trap offers a panoramic analysis of the fragile state of global finance and makes a compelling case that, despite all its flaws, the dollar will remain the ultimate safe-haven currency.