What Kind of International Financial Architecture for an Integrated World Economy?

2002 ◽  
Vol 1 (1) ◽  
pp. 91-128 ◽  
Author(s):  
Yung Chul Park ◽  
Yunjong Wang
Keyword(s):  
Developing Countries ◽  
Defense Mechanism ◽  
Rate System ◽  
Financial Cooperation ◽  
Financial Architecture ◽  
The World Bank ◽  
International Financial Architecture ◽  
Exchange Rate System ◽  
Future Direction ◽  
Corner Solutions

As was the case in the Mexican crisis of 1994–95, the G-7 and international financial institutions appear to have lost their zeal to garner the support they need for reform. The ongoing debate on the future direction of international financial reform suggests that most of the problems are likely to remain unchanged. This pessimistic outlook arouses a deep concern in developing countries that they will remain vulnerable to future financial crises, even if they faithfully carry out the kinds of reform recommended by the IMF and the World Bank. Given this reality, developing countries may have to develop a national or regional defense mechanism of their own by instituting a system of capital controls, adopting an exchange rate system that lies somewhere between the two-corner solutions, or strengthening regional financial cooperation.

Openness-inflation Nexus in alternative monetary regimes

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Pei-Chien Lin ◽  
Ho-Chuan Huang ◽  
Xiaojian Liu
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Negative Impact ◽  
Trade Openness ◽  
Developed Countries ◽  
Flexible Exchange Rate ◽  
Rate System ◽  
Exchange Rate System ◽  
The Impact ◽  
Developing And Developed Countries

AbstractBy applying an endogenous switching regression model to a sample of 64 countries, this article explores whether the effect of trade openness on inflation is influenced by the adoption of inflation targeting (IT). The outcome indicates that, while there exists a significant and negative impact of trade openness on inflation in the non-IT countries with flexible exchange rate system, the effect is negligible in the IT economies. In addition, the above differential inflation effect of trade openness across IT and non-IT regimes is only present in the developing subsample with flexible exchange rate system, but not the developed counterpart. Moreover, apart from trade openness, financial openness reinforces inflation in those developing countries not adopting IT, whereas no such significant effect is found in developing countries adopting IT. Instead of inflation, further results show that trade openness lowers inflation volatility both in developing and developed countries not adopting IT, yet the impact is smaller in developed country group. However, no such statistically significant link is found in developing and developed countries that adopt IT.

Reforming the (Non)System

2017 ◽  
Author(s):  
José Antonio Ocampo
Keyword(s):  
Sovereign Debt ◽  
Global Economy ◽  
Rate System ◽  
Financial Architecture ◽  
Bretton Woods ◽  
Special Drawing ◽  
System P ◽  
Exchange Rate System ◽  
Special Drawing Rights ◽  
Reserve System

This chapter proposes a comprehensive yet evolutionary reform of the global monetary non-system that evolved out of the breakdown of the original Bretton Woods arrangement in the early 1970s. The recent North Atlantic financial crisis showed how dysfunctional the current international monetary and financial architecture is for managing today’s global economy, and led to calls to reform it. Proposals for reform in this chapter include: (i) a global reserve system that mixes the multi-currency arrangement with an active use of the International Monetary Fund’s Special Drawing Rights; (ii) stronger mechanisms of macroeconomic policy cooperation, including management of the exchange rate system and capital account regulations; (iii) additional automatic balance-of-payments financing facilities, and the complementary use of swap and regional arrangements; (iv) a multilateral sovereign debt workout mechanism; and (v) major reforms of the system’s governance.

Part IV Activities of Organizations, Ch.17 International Finance

2016 ◽  
Author(s):  
Moschella Manuela
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Architecture ◽  
Basel Committee ◽  
The World Bank ◽  
International Financial Architecture ◽  
Bank For International Settlements ◽  
The Relationship ◽  
The International Monetary Fund ◽  
Two Bodies

The international financial architecture (IFA) can be viewed as a landscape crowded with different international bodies that share responsibilities for the prevention of global financial instability. These bodies include international organizations (IOs), such as the international financial institutions (IFIs) (e.g. the International Monetary Fund [IMF] and the World Bank), intergovernmental fora (e.g. the G7, G10, and G20), and transnational networks of regulators and supervisors (such as the Bank for International Settlements [BIS] and the Basel Committee on Banking Supervision [BCBS]). This chapter examines the dispersion of governance functions in the IFA. It focuses on the relationship between two key bodies — the Financial Stability Board (FSB) and the IMF — and applies the insights of the IO literature to illuminate the sources of organizational conflict between the two bodies. It argues that the problems in the FSB-IMF working relationship can be attributed to the different terms of their delegations, memberships, and organizational cultures. These factors, in turn, can be explained by the insights of the rationalist, realist, and constructivist frameworks.

scholarly journals The Global South Debt Revolution That Wasn’t

2021 ◽  
pp. 232-256
Author(s):  
Quentin Deforge ◽  
Benjamin Lemoine
Keyword(s):  
Developing Countries ◽  
Sovereign Debt ◽  
Financial Analysis ◽  
Division Of Labour ◽  
International Crises ◽  
Financial Architecture ◽  
International Financial Architecture ◽  
Fair Principles ◽  
Analysis System ◽  
Recent Project

In this article, we analyse how international crises and conflicts over sovereign debt have transformed the agenda of the United Nations Conference on Trade and Development (UNCTAD), the Geneva-based organization founded in 1964 and whose history is closely linked to the G77 group of developing countries. We show how UNCTAD’s projects for structural reform of the international financial architecture were contested and ultimately rejected in the 1970s. Such defeats were a blow to the transformative goals that UNCTAD had initially set to achieve. In the 1980s, UNCTAD gradually became a technical agency and its mandate restricted to providing expert assistance and support to developing countries during their negotiations with the Paris Club. Meanwhile, the mandate to produce expertise at the macro level (the so-called ‘upstream’ area), was effectively transferred to the IMF and World Bank. With the development of the Debt Management Financial Analysis System (DMFAS), UNCTAD went from promoting systemic change in international financial architecture to sponsoring the micro-management of domestic policies as remedy to over-indebtedness. But we also show that UNCTAD did not always restrict itself to doing such ‘downstream’ work, i.e., improving debt issuing capacities and technologies of developing countries. While UNCTAD’s recent project on fair principles of lending and borrowing principles conforms to what’s expected from the group of advanced countries, another project involving the creation of an international mechanism of sovereign debt restructuring functioned as a disturbance to this fragile downstream–upstream division of labour between international organizations.

Conference on the Role of Industrialisation in Developing Countries

1964 ◽  
Vol 2 (3) ◽  
pp. 440-442
Author(s):  
Ronald Robinson
Keyword(s):  
Developing Countries ◽  
United Nations ◽  
World Bank ◽  
Business Executives ◽  
Agricultural Revolution ◽  
The World Bank ◽  
The World ◽  
The United Nations

At the fourth Cambridge conference on development problems, the role of industry was discussed by ministers, senior officials, economic advisers, and business executives, from 22 African, Asian, and Caribbean countries, the United Nations, and the World Bank. Have some, if not all, of Africa's new nations now reached the stage when it would pay them to put their biggest bets on quick industrialisation? Or must they go on putting most of their money and brains into bringing about an agricultural revolution first, before striving for industrial take-off? These questions started the conference off on one of its big themes.

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