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Asian Regional Financial Safety Nets? Don't Hold Your Breath

Author

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  • Iwan J. Azis

    (Head, Office of Regional Economic Integration (OREI) at the Asian Development Bank (ADB), and Professor at Cornell University)

Abstract

By conjecturing that efforts to prevent and manage a crisis are the essence of providing financial safety nets, I argue that such efforts made by the ASEAN+3 officials especially in the provision of liquidity support during a crisis are far from adequate. The event of Lehman collapse in the fall of 2008 could be a game-changer in the global financial market, making the probability of a financial contagion higher than ever before. Even with improved financial conditions and stronger regulations in ASEAN+3 members, contagion can and will still strike. Making the CMIM more effective is therefore urgently needed.

Suggested Citation

  • Iwan J. Azis, 2012. "Asian Regional Financial Safety Nets? Don't Hold Your Breath," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 8(3), pages 321-340, August.
    • Handle: RePEc:mof:journl:ppr017e
    as

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    File URL: http://warp.ndl.go.jp/info:ndljp/pid/10248500/www.mof.go.jp/english/pri/publication/pp_review/ppr017/ppr017e.pdf
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    References listed on IDEAS

    as
    1. Mr. Amat Adarov & Mr. Robert Tchaidze, 2011. "Development of Financial Markets in Central Europe: the Case of the CE4 Countries," IMF Working Papers 2011/101, International Monetary Fund.
    2. Soyoung Kim & Jong-Wha Lee & Kwanho Shin, 2006. "Regional and Global Financial Integration in East Asia," Discussion Paper Series 0602, Institute of Economic Research, Korea University.
    3. M. Ayhan Kose & Eswar S. Prasad & Marco E. Terrones, 2003. "How Does Globalization Affect the Synchronization of Business Cycles?," American Economic Review, American Economic Association, vol. 93(2), pages 57-62, May.
    4. Mr. Eduardo Borensztein & Mr. Prakash Loungani, 2011. "Asian Financial Integration: Trends and Interruptions," IMF Working Papers 2011/004, International Monetary Fund.
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    Cited by:

    1. Jayant Menon, 2021. "ASEAN’s newer member countries in two financial crises: Impact, response and lessons," Departmental Working Papers 2021-27, The Australian National University, Arndt-Corden Department of Economics.
    2. Kawai, Masahiro, 2015. "From the Chiang Mai Initiative to an Asian Monetary Fund," ADBI Working Papers 527, Asian Development Bank Institute.
    3. Hal Hill & Jayant Menon, 2014. "Financial safety nets in Asia: genesis, evolution, adequacy and way forward," Chapters, in: Masahiro Kawai & Peter J. Morgan & Pradumna B. Rana (ed.), New Global Economic Architecture, chapter 5, pages 83-111, Edward Elgar Publishing.
    4. Emilios Avgouleas & Douglas W. Arner & Uzma Ashraf, 2014. "Regional financial arrangements: lessons from the Eurozone crisis for East Asia," Chapters, in: Iwan J. Azis & Hyun S. Shin (ed.), Global Shock, Risks, and Asian Financial Reform, chapter 10, pages 377-415, Edward Elgar Publishing.
    5. Jayant Menon & Hal Hill, 2014. "Does East Asia Have a Working Financial Safety Net?," Asian Economic Journal, East Asian Economic Association, vol. 28(1), pages 1-17, March.

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