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"This is a unique insider account of the new world of unfettered finance. The author, an Asian regulator, examines how old mindsets, market fundamentalism, loose monetary policy, carry trade, lax supervision, greed, cronyism, and financial engineering caused both the Asian crisis of the late 1990s and the current global crisis of 2008-2009. This book shows how the Japanese zero interest rate policy to fight deflation helped create the carry trade that generated bubbles in Asia whose effects brought Asian economies down. The study's main purpose is to demonstrate that global finance is so interlinked and interactive that our current tools and institutional structure to deal with critical episodes are completely outdated. The book explains how current financial policies and regulation failed to deal with a global bubble and makes recommendations on what must change"--Provided by publisher

Human society and nature interact through complex interconnections and interdependencies. Using Chinese scientist Qian Xuesen's concept of Giant Open Complex Systems, this paper argues that if human beings are themselves such open complex systems, their interaction with other human beings and nature create co-relative, co-creative interactions that cannot be reduced to simple reductionist principles that enable prediction and control. We should therefore have few illusions that we can fully control human destinies under current theories and policies.

The Chinese One Belt, One Road (OBOR) strategy will have profound implications for the emerging EuroAsia Great Game. This article suggests that the geopolitical risks are such that it may be better for the fast-growing South and East Asia to work more closely together to achieve development in an environment of cooperative peace.

This paper reviews the key insights of Hyman P. Minsky in arguing why finance cannot be left to free markets, drawing on the East Asian development experience. The paper suggests that Minsky's more complete stock-flow consistent analytical framework, by putting finance at the center of analysis of economic and financial system stability, is much more pragmatic and realistic compared to the prevailing neoclassical analysis. Drawing upon the East Asian experience, the paper finds that Minsky's analysis has a system-wide slant and correctly identifies Big Government and investment as driving employment and profits, respectively. Specifically, his two-price system can aid policymakers in correcting the systemic vulnerability posed by asset bubbles. By concentrating on cash-flow analysis and funding behaviors, Minsky's analysis provides the link between cash flows and changes in balance sheets, and therefore can help identify unsustainable Ponzi processes. Overall, his multidimensional analytical framework is found to be more relevant than ever in understanding the Asian crisis, the 2008 global financial crisis, and policymaking in the postcrisis world.

AbstractAsia was not directly or significantly hurt through financial channels by the global financial crisis, but rather was hurt through trade channels. This article reviews the current regulatory reforms of global financial markets and how these affect Asia. The current crisis has exposed many weaknesses in the existing financial architecture, including the fragmentation of regulatory jurisdiction at the national and institutional levels. What is required is a system‐wide and global view of market behaviour. The article uses a network perspective to analyse the issues and to propose solutions. The globalisation of finance and its fragmented regulatory oversight is a collective action problem that easily slips into a tragedy of the commons. Given the fact that there is no unanimity of views on how finance should be structured, there are differences in approaches to the reforms. Because Asian financial institutions and structures are less sophisticated, Asia is still struggling with how to make the financial system more efficient and responsive to real sector needs. The article suggests that Asia needs to identify its financial needs and can develop its markets through greater regional cooperation. Identifying the need to see financial markets as ecosystems through diversity, the article suggests that Asia can evolve through simpler but more robust financial systems.Policy Implications

As a matter of priority, Asia needs to strengthen domestic capital markets according to international standards.
The Asian approach will tend to be more pragmatic, focusing on simpler rules more effectively enforced. Financial innovation should be encouraged with an emphasis on functionality for the real sector, rather than leverage for the financial system.
Using the network approach means that Asians should build financial markets on a modular basis, ensuring that failure of one module will not destroy the whole system.
Since it is recognised that global problems cannot be solved at national levels alone, Asia can increase its voice in the international arena through regional subsets of the Financial Stability Board, central bank grouping within the Bank for International Settlements (BIS), and the International Organisation of Securities Commissions (IOSCO) to help push implementation and enforcement according to global standards and to have regional input into global policy decisions.

This paper attempts to use network theory, drawn from recent work in sociology, engineering, and biological systems, to suggest that the current crisis should be viewed as a network crisis. The author surveys the concepts of networks, their defining characteristics, applications to financial markets, and the need for supervision and implications for national and global governance. Then, author briefly examines the current financial crisis in the light of the network analysis and surveys the recent reforms in financial regulation and architecture. The paper concludes with an analysis of the policy implications of network analysis.

My perspective of China's economic reform is in the context of a so‐called transitional socialist economy, i.e., a centrally planned economy moving to a market‐based economy. Extensive literature on this covers theories on the big‐bang approach as opposed to the gradualist approach, etc. But the issue is much more subtle than these approaches suggest. It involves what I call the troika, which comprises budgetary reform, enterprise reform, and banking reform.

"This book puts China's shadow banking developments into perspective and clarifies the misconceptions surrounding its potential risks due to definitional and measurement differences, including double counting. It identifies the Chinese characteristics of shadow banking and attributes its rapid growth to a market response to prevailing constraints on credit (esp. by SMEs) and a demand for higher-yielding investment/saving products by the household/private sector"--

The focus of the EDI's program on the financial sector is on the improvement of decisionmaking in seven important areas dealing with the structure, reform, and development of financial systems in developing countries. The areas covered are: (1) reform of the structure of financial systems, (2) policies and regulations to prevent or deal with insolvency and illiquidity of financial intermediaries, (3) the development of markets for short- and long-term financial instruments, (4) the role of institutional elements in the development of financial systems, (5) the links between the financial sector and the real sectors, particularly in the case of restructuring financial and industrial institutions or enterprises, (6) the dynamics of financial systems management in terms of stabilization and adjustment and (7) access to international financial markets

The world spins in economic turmoil, and who can tell what will happen next? Cold numbers and simple statistical projections don't take into account social, financial, or political factors that can dramatically alter the economic course of a nation or a region. In this unique book, more than twenty leading economists and experts render thorough, rigorously researched prognoses for the world's major economies over the next five years. Factoring in such varied issues as the price of oil, the strength of the U.S. dollar, geopolitics, tax policies, and new developments in investment decision making, the contributors ground their predictions in the realities of current events, political conditions, and the health of financial institutions in each national economy.The most comprehensive volume on the global economy available today, this book presents up-to-date research on Russia, Australia, Europe, sub-Saharan and South Africa, the major Asian economies, North America, and the largest economies of Latin America. With unsurpassed expertise, the authors explain what's going on in individual countries, how important current global issues will impact them, and what economic scenarios they most likely will face in upcoming years

With the target date for the Millennium Development Goals (MDGs) behind us, this book asks did they work? And what happens next? Arguing that to effectively look forward, we must first look back, the editors of this insightful book gather leading scholars and practitioners from a range of backgrounds and regions to provide an in-depth exploration of the MDG project and its impact. Contributors use region-specific case studies to explore the effectiveness of the MDGs in addressing the root causes of poverty, including resource geographies, early childhood development and education, women's rights and disability rights as well as the impact of the global financial crisis and Arab Spring on MDG attainment. Providing a critical assessment that seeks to inform future policy decisions, the book will be valuable to those working in the development community as well as to academics and students of international development, international relations and development economics