scholarly journals Emerging Markets and the International Financial Architecture: A Blueprint for Reform

2015 ◽  
Author(s):  
Jan A. Kregel
Keyword(s):  
Emerging Markets ◽  
Financial Architecture ◽  
International Financial Architecture

The 2017 Joint Review of the Standards and Codes Initiative

Policy Papers ◽  
2017 ◽  
Vol 17 (009) ◽  
Author(s):  
Keyword(s):  
Emerging Markets ◽  
World Bank ◽  
Emerging Market ◽  
Capacity Development ◽  
International Standards ◽  
Economic Institutions ◽  
Policy Makers ◽  
Financial Architecture ◽  
Market Participants ◽  
International Financial Architecture

The standards and codes (S&C) initiative was launched in the aftermath of the emerging market crises of the 1990s as part of efforts to strengthen the international financial architecture, with a focus on emerging markets. The initiative has aimed at promoting international standards and codes to improve economic and financial resilience by assisting countries in strengthening their economic institutions and informing World Bank and IMF work. The four previous reviews confirmed a fairly high appreciation of the overall initiative, while also raising questions about the initiative’s link to surveillance and capacity development efforts, weak uptake by market participants, as well as a need to improve traction with policy makers. This review reaffirms the country authorities’ appreciation for S&C work, and its focus and scope are guided by the February 2017 paper.

scholarly journals Emerging markets and the international financial architecture: a blueprint for reform

2015 ◽  
Vol 35 (2) ◽  
pp. 285-305 ◽  
Author(s):  
JAN KREGEL
Keyword(s):  
Emerging Markets ◽  
Financial Stability ◽  
International System ◽  
Emerging Market ◽  
Political Influence ◽  
National Currency ◽  
Emerging Market Economies ◽  
Market Economies ◽  
Financial Architecture ◽  
International Financial Architecture

If emerging markets are to achieve their objective of joining the ranks of industrialized, developed countries, they must use their economic and political influence to support radical change in the international financial system. This working paper recommends John Maynard Keynes's "clearing union" as a blueprint for reform of the international financial architecture that could address emerging market grievances more effectively than current approaches. Keynes's proposal for the postwar international system sought to remedy some of the same problems currently facing emerging market economies. It was based on the idea that financial stability was predicated on a balance between imports and exports over time, with any divergence from balance providing automatic financing of the debit countries by the creditor countries via a global clearinghouse or settlement system for trade and payments on current account. This eliminated national currency payments for imports and exports; countries received credits or debits in a notional unit of account fixed to national currency. Since the unit of account could not be traded, bought, or sold, it would not be an international reserve currency. The credits with the clearinghouse could only be used to offset debits by buying imports, and if not used for this purpose they would eventually be extinguished; hence the burden of adjustment would be shared equally - credit generated by surpluses would have to be used to buy imports from the countries with debit balances. Emerging market economies could improve upon current schemes for regionally governed financial institutions by using this proposal as a template for the creation of regional clearing unions using a notional unit of account.

The paradoxes of liberalism: can the international financial architecture be disciplined?

2011 ◽  
Vol 40 (3) ◽  
pp. 477-487 ◽  
Author(s):  
Grahame F. Thompson
Keyword(s):  
Financial Architecture ◽  
International Financial Architecture
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