Skip to main content
SpringerLink
Log in

Taking Stock of Monetary and Financial Cooperation in Asia

  • Chapter
Exchange Rates, Currency Crisis and Monetary Cooperation in Asia

  • 113 Accesses

Abstract

Ever since the currency crisis of 1997–1998 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 in nature. As noted by Kuroda (2005), economic regionalism can be broadly divided into four categories, viz. trade and investment; monetary and financial2; infrastructure development and related software; and cross-border public goods (cooperation with regard to contagious diseases such as avian flu and SARS, as well as cross-border pollution such as the haze fires in Indonesia which affected many of its Southeast Asian neighbours). This chapter concentrates on the issue of de jure (as opposed to de facto) monetary and financial regionalism in Asia. In other words, the focus here 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 actual level of financial and monetary links that already exist (which may or may not have been facilitated via regional policy mechanisms).

This chapter draws on an article originally published in International Relations of the Asia-Pacific, 8 (1), 2008, 31–45 (Oxford University Press). Reprinted with permission.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aizenman, J. and N. Marion (2003). “The High Demand for International Reserves in the Far East: What’s Going On?,” Journal of the Japanese and International Economies, 17, 370–400.

    Article  Google Scholar 

  • Arteta, C.O. (2005). “Does Bond Market Development Help Reduce the Cost of Crises? Evidence from Developing Countries,” mimeo (April).

    Google Scholar 

  • Bird, G and R.S. Rajan (2002). “The Evolving Asian Financial Architecture,” Essays in International Economics No. 26 ( February ), Princeton University.

    Google Scholar 

  • Bird, G. and R.S. Rajan (2003). “Too Good to be True?: The Adequacy of International Reserve Holdings in an Era of Capital Account Crises,” The World Economy, 26, 873–891.

    Article  Google Scholar 

  • Bird, G. and R.S. Rajan (2004). “Does Devaluation Lead to Economic Recovery or Economic Contraction?: Examining the Analytical Issues with Reference to Thailand,” Journal of International Development, 16, 141–156.

    Article  Google Scholar 

  • Bird, G. and R.S. Rajan (2006). “The Political Economy of Sequencing: The Trade and Monetary Components of Regional Integration,” North American Journal of Economics and Finance, 17, 335–341.

    Article  Google Scholar 

  • Bussiere, M. and C. Mulder (1999). “External Vulnerability in Emerging Market Economies: How High Liquidity can Offset Weak Fundamentals and the Effects of Contagion,” Working Paper No. 99/88, IMF.

    Google Scholar 

  • Disyatat, P. (2001). “Currency Crises and Foreign Reserves—A Simple Model,” Working Paper No. 01/18, IMF.

    Google Scholar 

  • Eichengreen, B. (2004). “Financial Development in Asia: The Way Forward,” mimeo (January).

    Google Scholar 

  • Eichengreen, B. and A. Rose (2001). “To Defend or Not to Defend? That is the Question,” mimeo (February).

    Google Scholar 

  • Eichengreen, B. and P. Luengnaruemitchai (2005). “Why Doesn’t Asia Have Bigger Bond Markets?,” Working Paper No. 10576, NBER.

    Google Scholar 

  • Hamada, K., S.C. Jeon, and J.W. Ryou (2004). “Asian Bonds Markets: Issues, Prospects and Tasks for Cooperation,” paper prepared for the “Korea and the World Economy III” Conference, July 3–4.

    Google Scholar 

  • Haque, N., M. Kumar, M. Nelson, and D. Mathieson (1996). “The Economic Content of Indicators of Developing Country Creditworthiness,” Working Paper No. 96/9, IMF.

    Google Scholar 

  • Hausmann, R., U. Panizza, and E. Stein (2000). “Why do Countries Float the Way They Float?,” Working Paper No. 418, Inter-American Development Bank.

    Google Scholar 

  • Henning, R. (2005). “Systemic Contextualism and Financial Regionalism: The Case of East Asia,” mimeo (August).

    Google Scholar 

  • IMF (2001). Annual Report 2001, Washington, DC: IMF (September).

    Google Scholar 

  • Ito, T. (2003). “The ABC of Asian Bonds,” paper presented at the Second PECC Finance Forum Conference (Hua Hin, Thailand, July 8–9 ).

    Google Scholar 

  • Ito, T. and Y.C. Park, eds (2004). Developing Asian Bond Markets, Canberra: Asia Pacific Press.

    Google Scholar 

  • Jeanne, O. (2000). “Foreign CurrencyDebt andthe Global FinancialArchitecture,” European Economic Review, 44, 719–727.

    Article  Google Scholar 

  • Kim, J.S., J. Li, O. Sula, R.S. Rajan and T.D. Willett (2005). “Reserve Adequacy in Asia Revisited: New Benchmarks Base on the Size and Composition of Capital Flows,” in Monetary and Exchange Rate Arrangement in East Asia, Seoul: Korea Institute for Economic Policy.

    Google Scholar 

  • Kumar, N. (2005). “Towards a Broader Asian Community: Agenda for the East Asia Summit,” Discussion Paper No. 100, Research and Information System for Developing Countries, New Delhi.

    Google Scholar 

  • Kuroda, H. (2005). “Towards a Borderless Asia: A Perspective on Asian Economic Integration,” speech by Asian Development Bank (ADB) President at the Emerging Markets Forum (December 10, Oxford).

    Google Scholar 

  • Ma, G. and E.M. Remolona (2005). “Opening Markets Through a Regional Bond Fund: Lessons from ABF2,” BIS Quarterly Review, June, 81–92.

    Google Scholar 

  • Park, Y.C. (2004). “Beyond the Chiang Mai Initiative: Prospects for Regional Financial and Monetary Integration in East Asia,” paper prepared for meeting on G-24, September.

    Google Scholar 

  • Rajan, R.S. (2003). “Safeguarding Against Capital Account Crises: Unilateral, Regional and Multilateral Options for East Asia,” in G. de Brouwer (ed.), Financial Governance in East Asia, London: Routledge.

    Google Scholar 

  • Rajan, R.S. and R. Siregar (2001). “Private Capital Flows in East Asia: Boom, Bust and Beyond,” in G. de Brouwer (ed.), Financial Markets and Policies in East Asia, London: Routledge.

    Google Scholar 

  • Rajan, R.S. and R. Siregar (2004). “Centralized Reserve Pooling for the ASEAN Plus Three (APT) Countries,” in Monetary and Financial Cooperation in East Asia, Palgrave-McMillan Press for the Asian Development Bank.

    Google Scholar 

  • World Bank (2004). Global Development Finance, Washington, DC: The World Bank.

    Google Scholar 

Download references

Authors
  1. Ramkishen S. Rajan
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. School of Public Policy, George Mason University, USA

    Ramkishen S. Rajan (Associate Professor) (Associate Professor)

Copyright information

© 2009 Ramkishen S. Rajan

About this chapter

Cite this chapter

Rajan, R.S. (2009). Taking Stock of Monetary and Financial Cooperation in Asia. In: Rajan, R.S. (eds) Exchange Rates, Currency Crisis and Monetary Cooperation in Asia. Palgrave Macmillan, London. https://doi.org/10.1057/9780230234192_10

Download citation

Publish with us

Policies and ethics

Search

Navigation