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Monetary and Financial Cooperation in Asia : Emerging Trends and Prospects

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  • Ramkishen S. Rajan

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Abstract

Ever since the currency crisis of 1997-98 there has been a great deal of interest in enhancing regional economic cooperation in Asia. It is important to keep in mind that economic regionalism is multidimensional nature. The focus of this paper is on policy initiatives underway in Asia to enhance monetary and financial regionalism and the analytical bases for these initiatives, rather than on examining the de facto level of financial and monetary links that already exists (which may or may not have been facilitated via regional policy mechanisms). There are many gradations of monetary and financial regional cooperation, ranging from the weak form involving regional policy dialogue and surveillance, on the one hand, to exchange rate and monetary coordination, on the other. To maintain focus, this paper concentrates more narrowly on medium forms of monetary and financial regionalism, broadly defined as the development of regional liquidity arrangements and regional financial markets.

Suggested Citation

  • Ramkishen S. Rajan, 2006. "Monetary and Financial Cooperation in Asia : Emerging Trends and Prospects," Finance Working Papers 22125, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:financ:22125
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    References listed on IDEAS

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    Cited by:

    1. Ramkishen S. Rajan, 2007. "Exchange Rates under the East Asian Dollar Standard: living with conflicted virtue - By Ronald I. McKinnon," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 21(1), pages 81-82, May.
    2. Nagesh Kumar, 2008. "Relevance and Challenges of Broader Regionalism in Asia," India Quarterly: A Journal of International Affairs, , vol. 64(1-3), pages 79-105, January.
    3. Victor Pontines & Ramkishen Rajan, 2008. "The Asian Currency Unit (ACU): exploring alternative currency weights," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 1(2), pages 269-278.
    4. Ramkishen S. Rajan, 2009. "Crises, Private Capital Flows and Financial Instability in Emerging Asia," MPDD Working Paper Series WP/09/06, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    5. Peter Wilson, 2007. "Exchange Rate Cooperation in East Asia – Why a Basket Approach may be best," Macroeconomics Working Papers 22586, East Asian Bureau of Economic Research.

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    More about this item

    Keywords

    Asia; Asian Bond Fund (ABF); Asian Currency Unit (ACU); Capital account crisis; Liquidity; Regionalism; Swaps;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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