Series:

Turbulent Waters

2 total works

Cover of Crisis Prevention and Prosperity Management for the World Economy
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Turbulent Waters: Cross-Border Finance and International Governance advocates faster progress in reforming the international financial system. Its most important theme is the need for national governments and international organizations to upgrade their collective efforts at crisis prevention and prosperity management. The core of such efforts is the supranational surveillance of cross-border ""traffic regulations"" and the cooperative monitoring of nations' macroeconomic, exchange rate, and balance-of-payments policies. Concurrently, governments should streamline and strengthen the intermediation of intergovernmental lending for the liability financing of payments deficits through the International Monetary Fund. This essay gives detailed analysis supporting these conclusions and provides more technical discussion of the incremental policy measures needed to strengthen these collective efforts.

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Cover of Crisis Management for the World Financial System
As the world financial system becomes increasingly integrated, crises originating in one nation are more and more likely to spill across national borders and cause more generalized financial disruption. When financial crises do occur the world official community must be prepared cooperatively to manage the financial disruption. This background essay supports the summary analysis in "Turbulent Waters" with a careful exposition of issues that arise in the management of financial crises, first within nations and then in wider regional and world contexts. The emphasis in the later parts of the essay is on needed enhancements in collective international management, including improvements in the contingent provision of emergency lending, in the handling of moral hazard difficulties, and in the involvement of private financial institutions in concerted lending.