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Toward an Asian Monetary Fund: Ideas for Transition

Author

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  • Suk Hyun

    (East)

  • James F. Paradise

    (East)

Abstract

Creation of an Asian Monetary Fund might be a way to improve the financial safety net in Asia. This paper presents ideas for reforming the Chiang Mai Initiative Multilateralization (CMIM)—and its sister organization the ASEAN+3 Macroeconomic Research Office (AMRO)—to move Asia in that direction. Among the ideas presented are making the CMIM an international treaty-type organization with paid-in capital, improving indigenous surveillance and monitoring capacity and developing a conditionality framework, merging the CMIM and the AMRO, and creating new functions for a regional stability mechanism such as macroeconomic stabilization. Much of the analysis focuses on Europe, which may have lessons to teach on matters such as transparency and accountability, the dangers of an improperly designed monetary union, the role of the IMF in the global financial safety net, the importance of regional leadership, and the necessity of taking into account local conditions in designing new institutions or initiatives.

Suggested Citation

  • Suk Hyun & James F. Paradise, 2020. "Toward an Asian Monetary Fund: Ideas for Transition," Asian Economic Papers, MIT Press, vol. 19(2), pages 65-77, Summer.
    • Handle: RePEc:tpr:asiaec:v:19:y:2020:i:2:p:65-77
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    References listed on IDEAS

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    1. Asian Development Bank Institute, 2017. "The Asian Bond Markets Initiative: Policy maker achievements and challenges," Working Papers id:11808, eSocialSciences.
    2. Edwin M. Truman, 2019. "Survival of the International Monetary Fund and Global Economic Cooperation," Policy Briefs PB19-5, Peterson Institute for International Economics.
    3. C. Randall Henning, 2009. "The Future of the Chiang Mai Initiative: An Asian Monetary Fund?," Policy Briefs PB09-5, Peterson Institute for International Economics.
    4. Kawai, Masahiro, 2015. "From the Chiang Mai Initiative to an Asian Monetary Fund," ADBI Working Papers 527, Asian Development Bank Institute.
    5. Barry Eichengreen, 2003. "What to Do with the Chiang Mai Initiative," Asian Economic Papers, MIT Press, vol. 2(1), pages 1-49.
    6. Yung Chul Park, 2007. "Whither Financial and Monetary Integration in East Asia?," Asian Economic Papers, MIT Press, vol. 6(3), pages 95-128, Fall.
    7. Mark Weisbrot & Jake Johnston, 2016. "Voting Share Reform at the IMF: Will it Make a Difference?," CEPR Reports and Issue Briefs 2016-09, Center for Economic and Policy Research (CEPR).
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    Cited by:

    1. Zaman, Khalid, 2023. "The Future of Financial Support for Developing Countries: Regional and Islamic Monetary Funds," MPRA Paper 116264, University Library of Munich, Germany, revised 05 Feb 2023.
    2. Linda Glawe & Helmut Wagner, 2021. "Divergence Tendencies in the European Integration Process: A Danger for the Sustainability of the E(M)U?," JRFM, MDPI, vol. 14(3), pages 1-22, March.

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