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Published in association with the Bank of England, this volume presents an important restatement of the purposes and objectives of financial regulation.
"This book collects the papers and discussions delivered at an October, 1998 conference co-sponsored by the Federal Reserve Bank of Chicago and the International Monetary Fund to examine the causes, implications and possible solutions to the crises. The conference participants included a broad range of academic, industry, and regulatory experts representing more than thirty countries.
This paper focuses on the private nonfinancial sectors of the affected economies, financial liberalization provided households and businesses with greater access to credit markets. This contributed to the long period of expansion during the 1980s. Partly as a result of major changes to the financial systems, several industrial countries had a boom in asset markets associated with a period of asset accumulation, an unprecedented buildup of debt, a sharp increase in relative asset prices, and related increases in household wealth. The expansion in household financial activity in the United Kingdom during the 1980s was paralleled by a sizable boom in investment spending and an increase in corporate debt. The structure of balance sheets was also affected by mergers and acquisitions that led to a further expansion in corporate debt. New types of bank loans and accounts have prevented even greater disintermediation but have also reduced net interest margins because more deposits now earn market-related rates of return.
The book includes selected papers of Morris Goldstein on the following topics in international macroeconomics: international trade, currency regimes, exchange rate policy, international policy coordination, banking, financial crises, financial regulation, IMF policies, and China's exchange rate policy. Some of the papers are empirical in nature, while others address key policy issues in international macroeconomics. Many of the papers are co-authored with other well-known international economists, including Jacob Frenkel, Mohsin Khan, Nicholas Lardy, Peter Montiel, Michael Mussa, Carmen Reinhart, and Philip Turner, among others. Taken as a group, the papers should give the reader a good picture of many of the most important issues in international macroeconomics over the past 35 years.
This book offers an overview of present day thought on the very topical subject of financial stability and central banking.
International financial relations have become increasingly important for the development of global and national economies. At present these relations are primarily governed by market forces, with little regulatory interference at the international level. In the light of numerous financial crises, this abstinence must be seriously questioned. Starting with an analysis of the regulatory problems at the international level, with only minimal powers entrusted to international organisations, this book develops various possibilities for reform. On the basis of an historical analysis, the book first adopts a comparative approach to national attempts to regulate international financial markets, then outlines the potential of relevant institutions and finally develops a policy perspective. It seeks to provide a framework for analysing options for the regulation of international financial markets from a public international law and comparative law perspective.
The behavior of actors in financial systems depends crucially on the incentives that motivate them. The right regulation, supervision, and incentives (including the scope of permissible activities, degree of contestability, and extent of safety net) for financial services can make the sector more resilient in the face of adverse shocks.
This book analyzes the evolution and impact of the concept of risk on processes of transnational banking and financial market regulation, as well as the externalities generated by speculative financial activity in developing and emerging market economies. The author provides an alternative theory for the study of international financial market regu
The seven contributions in this book examine the potential impact of a North American Free Trade Agreement (NAFTA) with Mexico on the U.S. economy. They cover such key aspects as the general sources of comparative advantage between Mexico and the U.S., regional and local effects on production and employment, and the effect on production in particular industries. The authors start from the premise that the trade agreement will have a small impact on the overall U.S. gross national product because the U.S. economy is large compared to that of Mexico and because there is already much unrestricted trade between the two countries. Several chapters consider how some sources of comparative advantag...
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