Reform Of The International Financial System And Institutions In Light Of The Asian Financial Crisis
AbstractWhen East Asian countries came under speculative attacks in 1997, some of them were not able to defend themselves, and subsequently had to seek the financial assistance of IMF and accept its stabilization programmes. These crisis-hit countries were criticized for not having restructured their financial, corporate, and public sectors along the lines suggested by the Washington consensus. This failure was singled out as the main cause of the crisis and, understandably, these crisis-hit countries were subject to heavy doses of structural reforms. The East Asian crisis became contagious, even threatening the stability of major international financial centres. The severity and contagiousness of the East Asian crisis underscored the importance of, and renewed interest in, reforming the international financial system. Numerous proposals have been put forward. The G-7-led reform, however, has concentrated its efforts on reforming the financial and corporate sectors of developing economies, while by and large ignoring the problems of the supply side of international finance. As was the case in the Mexican crisis of 1994/95, the appetite for radical reform of the international financial system has receded considerably in the wake of global recovery. The ongoing debate on the future direction of the international financial reform in fact suggests that most of the problems that beset the international financial system are likely to remain unchanged. This pessimistic outlook arouses deep concern in developing countries lest they remain vulnerable to future financial crises, even if they faithfully carry out the kinds of reform recommended by IMF and the World Bank. Given this reality, developing countries may have to develop a defence mechanism of their own by instituting a system of capital control and adopting an exchange rate system that lies somewhere between the two corner solutions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by United Nations Conference on Trade and Development in its series G-24 Discussion Papers with number 12.
Date of creation: 2001
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael D. Bordo & Bruce Mizrach & Anna J. Schwartz, 1995. "Real Versus Pseudo-International Systemic Risk: Some Lessons from History," NBER Working Papers 5371, National Bureau of Economic Research, Inc.
- Miller, Marcus & Zhang, Lei, 1998.
"Sovereign Liquidity Crises: the Strategic Case for a Payments Standstill,"
CEPR Discussion Papers
1820, C.E.P.R. Discussion Papers.
- Miller, Marcus & Zhang, Lei, 2000. "Sovereign Liquidity Crises: The Strategic Case for a Payments Standstill," Economic Journal, Royal Economic Society, vol. 110(460), pages 335-62, January.
- Marcus H. Miller & Lei Zhang, 1999. "Sovereign Liquidity Crisis: The Strategic Case for A Payments Standstill," Working Paper Series WP99-8, Peterson Institute for International Economics.
- Marcus Miller & Lei Zhang, 1999. "Sovereign Liquidity Crisis: The Strategic Case for a Payments Standstill," CSGR Working papers series 35/99, Centre for the Study of Globalisation and Regionalisation (CSGR), University of Warwick.
- Roberto Chang & Andres Velasco, 1997.
"Financial fragility and the exchange rate regime,"
97-16, Federal Reserve Bank of Atlanta.
- Chang, R. & Velasco, A., 1998. "Financial Fragility and the Exchange Rate Regime," Working Papers 98-05, C.V. Starr Center for Applied Economics, New York University.
- Roberto Chang & Andres Velasco, 1998. "Financial Fragility and the Exchange Rate Regime," NBER Working Papers 6469, National Bureau of Economic Research, Inc.
- Andrew K. Rose, 1999. "Is there a case for an Asian Monetary Fund?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue Dec 17.
- Ueda, Kazuo, 1998. "The East Asian Economic Crisis: A Japanese Perspective," International Finance, Wiley Blackwell, vol. 1(2), pages 327-38, December.
- Morris Goldstein, 2000. "Strengthening the International Financial Architecture: Where Do We Stand?," Working Paper Series WP00-8, Peterson Institute for International Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Juan Pizarro).
If references are entirely missing, you can add them using this form.