Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2025-01-03T10:41:27.706Z Has data issue: false hasContentIssue false

10 - The IMF and East Asia: a changing regional financial architecture

Published online by Cambridge University Press:  04 December 2009

By
Gordon de Brouwer
Edited by
David Vines  and
Christopher L. Gilbert
Gordon de Brouwer
Affiliation:
Professor of Economics in the Asia Pacific School of Economics and Government, Australian National University
David Vines
Affiliation:
University of Oxford
Christopher L. Gilbert
Affiliation:
Universiteit van Amsterdam
Get access

Summary

Introduction

The financial crises of 1997 and 1998 have had a profound effect on East Asia's view of international financial and monetary arrangements, including the role of the International Monetary Fund (IMF) in international policy dialogue and financial cooperation. There has been a tectonic shift in the policy landscape of the region. While there are differences between and within countries, no longer is East Asia content to rely almost exclusively on global forums, mechanisms and institutions; it now wants to develop a complementary regional structure. The process of developing a regional economic and financial architecture may be in its early stages but the political and policy dynamics under way make it irreversible.

There are many elements to the expansion of regional arrangements – ranging from strengthened policy dialogue, greater financial cooperation, deeper economic and trade integration and even common currency arrangements. Much of the content of the evolving debate and policy on regional financial arrangements is tied directly to the region's discontent with the IMF and its concomitant, disillusion with the way the United States dealt with the financial crisis in East Asia. It is also motivated by a profound sense that deep economic and financial integration in East Asia can be of substantial benefit, both nationally and internationally, to countries in the region. At the same time, the European experience is seen as compelling.

Type
Chapter
Information
The IMF and its Critics
Reform of Global Financial Architecture
 , pp. 254 - 287
Publisher: Cambridge University Press
Print publication year: 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bayoumi, T. and P. Mauro (1999). ‘The Suitability of ASEAN for a Regional Currency Arrangement’, IMF Working Paper, WP/99/102
Boorman, J., T. Lane, M. Schulze-Ghattas, A. Bulir, A. Ghosh, J. Hamann, A. Mourmouras and S. Phillips (2000). ‘Managing Financial Crises: The Experience in East-Asia’, IMF Working Paper, WP//00/107, June
Bordo, M. D. and A. P. Murshid (2000). ‘Are Financial Crises Becoming Increasingly More Contagious? What is the Historical Evidence on Contagion?’, NBER Working Paper, 7900
Corsetti, G., A. Dasgupta, S. Morris and H. S. Shin (2000). ‘Does One Large Soros Make a Difference? The Role of a Large Trade in Currency Crises’, Cowles Foundation Discussion Paper, 1273. New Haven, CT, Yale University
Costello, P. (1999). ‘Australia and the IMF’, Annual Report to the Parliament Under the International Monetary Arrangements Act 1947, Canberra, Australian Government Printing Service
Council on Foreign Exchange and Other Transactions (1999). ‘Internationalisation of the Yen for the 21st Century’, available at www.mof.go.jp/english/if/elb064a.htm
de Brouwer, G. J. (1999). Financial Integration in East Asia. Cambridge, Cambridge University Press
de Brouwer, G. J. (2001). Hedge Funds in Emerging Markets, Cambridge, Cambridge University Press
de Brouwer, G. J. 2002a. ‘Debating Financial Markets and Policies in East Asia’, chapter 1 in G. de Brouwer (ed.), Financial Markets and Policies in East Asia. London, Routledge, 1–16
de Brouwer, G. J. (2002b). ‘Does a Formal Common-Basket Peg in East Asia Make Economic Sense?’, chapter 12 in G. de Brouwer (ed.), Financial Markets and Policies in East Asia. London, Routledge, 286–314
Dornbusch, R. and Y. C. Park (1999). ‘Flexibility or Nominal Anchors?’, chapter 1 in S. Collignon, J. Pisani-Ferry and Y. C. Park (eds.), Exchange Rate Policies in Emerging Asian Countries. London, Routledge, 3–34
Dornbusch, R., Park, Y. C. and Claessens, S. (2000). ‘Contagion: Understanding How It Spreads’, World Bank Research Observer, 15(2), 177–97CrossRefGoogle Scholar
Edwards, S. and R. Susmel (2000). ‘Interest Rate Volatility and Contagion in Emerging Markets: Evidence from the 1990s’, NBER Working Paper, 7813
Eichengreen, B. and T. Bayoumi (1999). ‘Is Asia an Optimum Currency Area? Can It Become One? Regional, Global, and Historical Perspectives on Asian Monetary Relations’, chapter 21 in S. Collignon, J. Pisani-Ferry and Y. C. Park (eds.), Exchange Rate Policies in Emerging Asian Countries. London, Routledge, 347–66
Financial Stability Forum Working Group on Highly Leveraged Institutions (2000). Report, available at www.fsforum.org
Fischer, S. (2001). ‘Asia and the IMF’, remarks made at the Institute of Policy Studies, Singapore, 1 June, available at www.imf.org/external/np/speeches/2001/060101.htm
Goto, J. and K. Hamada (1994). ‘Economic Preconditions for Asian Regional Integration’, in T. Ito and A. Kruger (eds.), Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows. Chicago, University of Chicago Press, 359–88
Grenville, S. A. (1997). ‘Asia and the Financial Sector’, Reserve Bank of Australia Bulletin, December
Grenville, S. A. (1998). ‘The Asian Economic Crisis’, Reserve Bank of Australia Bulletin, April
Henning, C. R. (2002). ‘East Asian Financial Cooperation After Chiang Mai’, Washington, DC, Institute for International Economics, Policy Analyses in International Economics, 68, September
Ito, T., E. Ogawa and Y. N. Sasaki (1998). ‘How Did the Dollar Peg Fail in Asia?’, NBER Working Paper, 6729
Kawai, M. (2001). ‘Recommending a Currency Basket System for Emerging East Asia’, paper presented at a conference on Regional Financial Arrangements in East Asia, organised by the Australia–Japan Research Centre, Australian National University, 12–13 November
Kawai, M. and S. Akiyama (2000). ‘Implications of the Currency Crisis for Exchange Rate Arrangements in Emerging East Asia’, Washington, DC, World Bank, mimeo
Kawai, M. and S. Takagi (2000). ‘The Strategy for a Regional Exchange Rate Arrangement in Post-Crisis East Asia: Analysis, Review and Proposal’, Washington, DC, World Bank, mimeo
Kim, T. J., J. W. Ryou and Y. Wang (2000). ‘Regional Arrangements to Borrow: A Scheme for Preventing Future Asian Liquidity Crises’, Seoul, Korea Institute for International Economic Policy
Kim, T. J. and D. Y. Yang (eds.) (2001). New International Financial Architecture and Korean Perspectives. Seoul, Korea Institute for International Economic Policy
Kwan, C. H. (2001). Yen Bloc: Toward Economic Integration in Asia. Washington, DC, Brookings Institution Press
Lee, H. H. and D. Y. Yang (2001). ‘Reforming the International Financial Architecture’, chapter 1 in T.-J. Kim and D. Y. Yang (eds.), New International Financial Architecture and Korean Perspectives. Seoul, Korea Institute for International Economic Policy, 9–33
Macfarlane, I. J. (1997a). ‘Statement to Parliamentary Committee’, Reserve Bank of Australia Bulletin, November
Macfarlane, I. J. (1997b). ‘The Changing Nature of Economic Crises’, Reserve Bank of Australia Bulletin, December
Moon, W. S. and Y. S. Rhee (2002). ‘Foreign Exchange Market Liberalisation in Korea: Past and Future Options’, in K. T. Lee (ed.), Globalization in the New Millennium. London, Routledge
Moon, W. S., Rhee, Y. S. and Yoon, D. R. (2000). ‘Asian Monetary Cooperation: A Search for Regional Monetary Stability in the Post-Euro and Post-Asian Crisis Era’, Bank of Korea Economic Papers, 3(1), 157–93Google Scholar
Murase, T, (2000). Ajia Antei Tsuukaken: Yuroo ni Manabu Yen no Yakuwari (The Asian Zone of Monetary Stability: Lessons from the Euro and Role of the Yen). Tokyo, Keiso Shobo
Mussa, M., P. Masson, A. Swoboda, E. Jadresic, P. Mauro and A. Berg (2000). Exchange Rate Regimes in an Increasingly Integrated World. Washington, DC, IMF, April
Obstfeld, M. (1996). ‘Models of Currency Crises With Self-Fulfilling Features’, European Economic Review, 40(3–5), 1037–47CrossRefGoogle Scholar
Ogawa, E. (2000). ‘East Asian Countries Return to the Dollar Peg Again?’, Tokyo, Hitotsubashi University, mimeo
Ogawa, E. and T. Ito (2000). ‘On the Desirability of a Regional Basket Currency Arrangement’, Hitotsubashi University, mimeo, March
Parkinson, M., P. Garton and I. Dickson (2002). ‘Regional Financial Arrangements: What Role in the International Financial Architecture?’, paper presented at the CCER Peking University/AJRC ANU Conference on Deepening Financial Arrangements in East Asia, Beijing, 24–25 March
Pisani-Ferry, J. (2001). ‘The European Experience with Regional Financial Arrangements’, powerpoint presented at a conference on Regional Financial Arrangements in East Asia, organised by the Australia–Japan Research Centre, Australian National University, 12–13 November
Rice, C. (2000). ‘Campaign 2000: Promoting the National Interest’, Foreign Affairs, January–February
Rigobon, R. (2001). ‘Contagion: How to Measure It?’, NBER Working Paper, 8118
Rollo, J. (2001). ‘Monetary Cooperation and Policy Dialogue: The European Experience’, powerpoint presented at a conference on Regional Financial Arrangements in East Asia, organised by the Australia–Japan Research Centre, Australian National University, 12–13 November
Ryou, J. W. and T. J. Kim (2001). ‘The Choice of Exchange Rate Regime and Capital Mobility: An Emerging Market Economies Perspective’, chapter 4 in T. J. Kim and D. Y. Yang (eds.) (2001), New International Financial Architecture and Korean Perspectives. Seoul, Korea Institute for International Economic Policy, 87–108
SaKong, I. and Y. Wang (2000). Reforming the International Financial Architecture: Emerging Market Perspectives. Seoul, Institute for Global Economics and Korea Institute for International Economic Policy
Williamson, J. (1999). ‘The Case for a Common Basket Peg for East Asian Currencies’, chapter 19 in S. Collignon, J. Pisani-Ferry and Y. C. Park (eds.), Exchange Rate Policies in Emerging Asian Countries. London, Routledge, 327–43
Williamson, J. (2001). ‘The Case for a Basket, Band and Crawl (BBC) Regime in East Asia’, in D. Gruen and J. Simon (eds.), Future Directions for Monetary Policies in East Asia. Sydney, Reserve Bank of Australia, 97–112, available at www.rba.gov.au/PublicationsAndResearch/Conferences/2001
Wyplosz, C. (2001). ‘A Monetary Union in East Asia? Some Lessons from Europe’, in D. Gruen and J. Simon (eds.), Future Directions for Monetary Policies in East Asia. Sydney, Reserve Bank of Australia, 124–55, available at www.rba.gov.au/PublicationsAndResearch/Conferences/2001
Yamamoto, T., P. Thiparat and A. Ahsan (2001). America's Role in Asia: Asian Views. San Francisco, The Asia Foundation
Yoshino, N., S. Koji and A. Suzuki (2000). ‘Basket Peg, Dollar Peg, and Floating: A Comparative Analysis of Exchange Rate Regimes’, Tokyo, Keio University, mimeo
Yoshitomi, M. and K. Ohno (1999). ‘Capital Account Crisis and Credit Contraction: A New Nature of Crises Requires New Policy Papers’, ADBI Working Paper, 2

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×