Changing Global Financial Governance: International Financial Standards and Emerging Economies since the Global Financial Crisis
Friday, 27 February 2015
One of the most remarkable changes in global financial governance since the 2008-2009 crisis has been the primary forums that establish international standards extending their memberships to include emerging economies. There are two disparate perspectives in the literature on the impact of this change on international financial regulation: the weakening cooperation view, which sees an attenuation of international cooperation due to this change, and the enduring status quo view, which sees the domination of global financial governance by advanced economies persisting even despite it. This paper presents an alternative — more positive — perspective.
Thursday, 26 February 2015
Since China's pilot scheme for RMB cross-border settlement was launched in 2009, it has become increasingly important for monetary authorities in terms of macroeconomic policy frameworks. The authors use an analytical model that includes monetary supply and demand to examine the influences of RMB cross-border settlement on China's domestic interest rate, asset price and foreign exchange reserves. They also look at how RMB settlement behaves in different ways with the various items in China's balance of payments.
Tuesday, 24 February 2015
I don’t know near enough about Brazil to pass judgement on Guido Mantega’s tenure as the country’s finance minister. But he already has a legacy, for it was he who gave us the “currency war.” Mr. Mantega (in)famously uttered that phrase in 2010 to the delight of headline writers, business channel pundits and foreign-exchange analysts the world over.
Friday, 20 February 2015
Over-the-counter (OTC) derivatives played an important role in the buildup of systemic risk in financial markets before 2007 and in spreading volatility throughout global financial markets during the crisis. In recognition of the financial and economic benefits of derivatives products, the G20 moved to regulate the use of OTC derivatives. Attention has been drawn to the detrimental effects of the United States and the European Union to coordinate OTC reform, but this overlooks an important aspect of the post-crisis process: the exemption of non-financial operators from OTC derivative regulatory requirements.
Friday, 20 February 2015
If there’s a reversal of privatization, why? There are several reasons for a country to renationalize or stop privatization. In some cases, following the prescriptions of the IMF and the World Bank, developing countries privatized industries that were under state control and opened their borders to foreign direct investment.
Tuesday, 10 February 2015
In our previous posts we talked about how it has become common wisdom that neoliberalist transformations are taking developing countries by storm – irreversibly changing intra-state dynamics, boosting productive capacities, reducing inequality, and enhancing welfare. Instead, recent years have seen a pattern of an increase in state activity in the domestic economy. In some cases, there’s privatization and in others a populist surge of sentiment in favour of greater government involvement in the economy.
Wednesday, 4 February 2015
Since the 1970s, neoliberalism or the Washington Consensus belief in the virtues of free markets offered us a tantalizing premise: that the accumulation regime of neoliberalism has provided consumers with more for less. The engine of economic growth was no longer the state, but the individual. It was the role of the entrepreneur and consumer, not the government that could produce economic wealth for a society. This was matched with cheap energy, food, raw materials, and labour, otherwise known as the cornerstones of the capitalist bloom, and instrumental inputs into the laissez-faire golden age.
Tuesday, 3 February 2015
The Bank of Canada is among the least transparent major central banks in the world. I made this point in my weekly column for the Globe and Mail late last year. Thanks to former Federal Reserve governor Kevin Warsh's work for Mark Carney, there suddenly was empirical evidence to support an argument that I had until then based mostly on impressions, such as the relatively cloistered nature of the Bank of Canada's Governing Council. I couldn't let the moment pass undocumented. It helped that it was the slow holiday period, where editors are so desperate they will accept most anything, even several hundred words on central bank transparency.
Thursday, 29 January 2015
That was the name of a panel discussion last Friday afternoon moderated by IMF Chief Economist Olivier Blanchard. The timing of the panel discussion was propitious, coming just before the Greek elections that saw the Syriza party come to poet on a debt-reduction platform. International cooperation will be needed in the months ahead as uncertainty over the outcome of debt negotiations and the fate of the euro zone is likely to increase.
Wednesday, 28 January 2015
Drawing on CIGI-sponsored research, this policy brief discusses the potential effects of unexpected US news events on global capital flows. It then identifies the countries that are most vulnerable to global financial volatility and discusses the role of the Group of Twenty in facilitating a stronger and more resilient global economy.