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The Global Financial Safety Net through the Prism of G20 Summits

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  • Cheng, Gong

Abstract

Since the Global Financial Crisis, the Group of Twenty (G20) has not only become the premier forum for policy coordination among major economies but has also played an important role in promoting reforms to safeguard global financial stability. This paper focuses on the commitments the G20 has made to strengthen the Global Financial Safety since its first Leaders' Summit in Washington, D.C. in 2008. This paper first compares reform proposals that the G20 achieved and those it did not during the subsequent six years, or by the 2014 Summit in Australia. The paper finds that reforms aimed at enhancing financial resources and renewing instruments for emergency liquidity provision were substantially implemented. However, institutional reforms concerning the governing structure of International Financial Institutions were delayed. The paper then analyses, from a political economic perspective, why the G20 delivered on the first set of reforms, but not on the second. The urgency of responding to the crisis, the role of particular countries as well as institutional characteristics of the G20 framework determine the political interests in this reform area.

Suggested Citation

  • Cheng, Gong, 2015. "The Global Financial Safety Net through the Prism of G20 Summits," MPRA Paper 68070, University Library of Munich, Germany, revised Nov 2015.
  • Handle: RePEc:pra:mprapa:68070
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    References listed on IDEAS

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    1. Dominguez, Kathryn M.E. & Hashimoto, Yuko & Ito, Takatoshi, 2012. "International reserves and the global financial crisis," Journal of International Economics, Elsevier, vol. 88(2), pages 388-406.
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    4. Edwin M. Truman, 2011. "G-20 Reforms of the International Monetary System: An Evaluation," Policy Briefs PB11-19, Peterson Institute for International Economics.
    5. Chalongphob SUSSANGKARN, 2011. "Chiang Mai Initiative Multilateralization: Origin, Development, and Outlook," Asian Economic Policy Review, Japan Center for Economic Research, vol. 6(2), pages 203-220, December.
    6. Hal Hill & Jayant Menon, 2014. "Financial safety nets in Asia: genesis, evolution, adequacy and way forward," Chapters,in: New Global Economic Architecture, chapter 5, pages 83-111 Edward Elgar Publishing.
    7. José Antonio Ocampo & Daniel Titelman, 2012. "Regional Monetary Cooperation in Latin America," Governance Working Papers 23324, East Asian Bureau of Economic Research.
    8. Wade, Robert H., 2011. "Emerging world order? From multipolarity to multilateralism in the G20, the World Bank, and the IMF," LSE Research Online Documents on Economics 38603, London School of Economics and Political Science, LSE Library.
    9. Changyong Rhee & Lea Sumulong & Shahin Vallée, 2013. "Global and regional financial safety nets: lessons from Europe and Asia," Working Papers 801, Bruegel.
    10. Titelman Kardonsky, Daniel & Vera, Cecilia & Carvallo, Pablo & Pérez Caldentey, Esteban, 2014. "A regional reserve fund for Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Olivier Jeanne, 2010. "Dealing with Volatile Capital Flows," Policy Briefs PB10-18, Peterson Institute for International Economics.
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    Cited by:

    1. Corsetti, G. & Erce, A. & Uy, T., 2017. "Official Sector Lending Strategies During the Euro Area Crisis," Cambridge Working Papers in Economics 1730, Faculty of Economics, University of Cambridge.
    2. Eduardo Levy Yeyati, "undated". "The Cost of Holding Foreign Exchange Reserves," CID Working Papers 353, Center for International Development at Harvard University.
    3. repec:bla:devchg:v:50:y:2019:i:1:p:24-45 is not listed on IDEAS
    4. repec:nbb:ecrart:y:2017:m:september:i:ii:p:87-112 is not listed on IDEAS
    5. repec:eee:jimfin:v:94:y:2019:i:c:p:160-182 is not listed on IDEAS
    6. Cui, Wei, 2017. "Macroeconomic effects of delayed capital liquidation," LSE Research Online Documents on Economics 86156, London School of Economics and Political Science, LSE Library.
    7. Eduardo Levy Yeyati, "undated". "The Cost of Holding Foreign Exchange Reserves," CID Working Papers 353, Center for International Development at Harvard University.

    More about this item

    Keywords

    Global Financial Safety Net; G20; International Monetary Fund; Regional Financing Arrangements;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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