Financial Deepening and Post-Crisis Development in Emerging Markets - Current Perils and Future Dawns (original) (raw)
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Introduction: Financial crisis and renewal? Diversity and convergence in emerging markets
Review of International Political Economy, 2009
The articles in this issue were conceived in a very different political and economic climate from that which pertains today. Each of the crises analyzed here was seen at the time as having significant ramifications for global finance and the process of marketization that characterized the international political economy from the Reagan Era of the 1980s to the first few years of the 21st century. But while a few economists and political scientists saw them as symptomatic of a wider and growing crisis of financial deregulation, innovation and the tight coupling of global financial institutions and markets (e.g. Bookstaber, 2007; Nesvetailova, 2007), most observers at the time read them more as uneven and treacherous, but necessary, hurdles on the road to economic and financial development. The ‘Great Moderation’ was the order of the day from 2002–07, and these crises were a thorny but necessary form of adjustment to global realities. Today, however, they are seen as symptomatic of the challenges of stabilizing a global capitalism still prone to serious dysfunctions and requiring continual political as well as economic responses. Examining these cases more closely, however, the question is not so much whether we can learn policy ‘lessons’ from the crises faced by emerging markets in the late 1990s and early 2000s, but whether we can identify particular factors that provide significant insights into explaining how such crises develop.1 Although these factors are common across cases, they exhibit unique characteristics and appear in different combinations such that the overall impression therefore is one of ‘diversity within convergence’. While the role of financial crises in the development of complex interdependence (Keohane and Nye, 1977) is characterized by movement toward certain common economic
Rethinking Financial Deepening: Stability and Growth in Emerging Markets
Staff Discussion Notes, 2015
DISCLAIMER: Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate. The views expressed in Staff Discussion Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Financialisation in Emerging Economies
2021
Since the beginning of the 2000s, emerging market economies, or middleincome countries, have embarked on major changes in their domestic financial systems. These changes-in which central banks have been key players-are shaped by the process of financialisation, which can generally be characterised by the dominance of financial considerations in the conduct of major agents (banks, non-financial corporations and households). As a consequence of the emerging markets crisis at the end of the 1990s, a new phenomenon in global financial markets emerged: a massive accumulation of foreign reserves in emerging economies. This has had important consequences for the global economy in which developed economies are the major beneficiaries. Based on Marxist political economy, this book studies the trends towards financialisation in emerging economies, focusing on the effects of the reserve accumulation in their international and domestic spheres. It argues that reserve accumulation has been the very catalyst of financialisation, being related to the subordinated position of emerging economies in the international monetary system. The chapters explore how these trends were exacerbated by the 2008 global financial crisis as well as the extraordinary monetary measures undertaken by the major central banks to deal with the effects of this. Foreign investors invested an enormous amount into emerging economies between 2010 and 2012 and emerging-market financial assets have doubled since 2008. To conclude, the book discusses how the US monetary policy normalisation has added more complexity to these trends since 2013 by putting pressure on emerging markets related to the level of global liquidity. This book provides essential reading for students and scholars of finance, economics and political economy who are interested in the unfolding of the subordinated financial integration of emerging economies into global financial markets.
2015
The global banking environment has become potentially riskier and unpredictable than before because of the recent developments in financial products and services, which have massively changed the ways and means banks employ in their day to day operations. The main aims of the Basel II Capital Accord were initially to strengthen the financial soundness and stability of the international banking system by encouraging banks to improve their own risk management practices and frameworks. The Basel II Capital Accord was heavily criticised by monetary authorities and governments of emerging market economies, which felt that the Accord's recommendations were meant to pursue the growth and development of the Great-10 developed states and had nothing to offer for developing nations. The study at hand sought to examine the adoption and implementation threats and opportunities of the Basel II Capital Accord in emerging economies. The respondents of the study were drawn from the populations ...
The impact of the financial crisis on emerging Asia
2009
This paper analyzes how the global financial crisis has affected emerging Asia and identifies key characteristics that have made these economies more or less vulnerable to a transmission of crises from the advanced economies. After reviewing how economic outcomes in emerging Asia have evolved since the crisis began in the summer of 2007, we review several studies of the effect of financial stress and/or growth slowdown in advanced economies on emerging Asia. We then discuss how emerging Asia is "different" in ways that matter for the contagion of crises, with the emphasis on currency and maturity mismatches, the nature of the region's foreign trade links (product composition, the geographic pattern of trade, and the degree of net export-led growth), financial market integration with the advanced economies, and the scope for implementing countercyclical monetary and fiscal stimulus. JEL Codes: F15, F31, F34, F37, F41, F43
Emerging Markets and the International Financial Architecture: A Blueprint for Reform
SSRN Electronic Journal, 2015
The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.
Development and Financial Reform in Emerging Economies
An interesting volume in development economics. One can make associations with recent economic developments in the EU South. My review is Forthcoming in Economic Issues March 2015. Kobil Ruziev and Nicholas Perdikis Editors Pickering and Chatto London 2015