Who Will Provide the Next Financial Model? [electronic resource] : Asia's Financial Muscle and Europe's Financial Maturity /
Kaji, Sahoko.editor.
Ogawa, Eiji.editor.
During the past 4 years, faith in the present financial model has been shaken in terms of policy, regulation, the financial sector itself, and exchange-rate regimes. Past and present policies of the world’s most respected central banks have come under fire. Regulations that defined the system have undergone major reviews. Complicated financial instruments that provided new ways of financial intermediation have been exposed as culprits behind the financial meltdown. After 10 years of success, Europe’s single currency is under threat. In short, the established financial model not only has been unable to prevent the crisis but, arguably, has been a cause of it. There is no longer one obvious model that meets all needs. The burst of Japan’s bubble was followed by two “lost decades”. Before a contrite Japan completely adopted Western ways of finance, the “Lehman shock” hit, followed by the euro crisis. Monetary policy, financial regulation and the state of the financial sector all must be reconsidered. Currencies and exchange rates make up another important aspect of finance. If the Western model of finance is discredited, does that mean the dominance of Western currencies is also eroded? What does the crisis in the euro area tell us about exchange rate regimes in general? Clearly, a new model is needed, one that is conducive to both stability and prosperity. But who will provide it? This volume records the cumulative results of three EU Studies Institute (EUSI) conferences that have addressed these issues, and examines how Asia and Europe compare in the quest for the next financial model. While many books on Europe and Asia focus on integration and what Asia can learn from Europe, this book emphasizes mutual lessons in the common search for a new model.
Description based upon print version of record.
Who Will Provide the Next Financial Model?; Preface; Contents; List of Contributors; Editors; Authors; EU Studies Institute; Part I: Financial Regulation; The EU's Approach to Improving Financial Regulation; 1 Phases of the Crisis; 2 A Rapidly-Evolving Governance Agenda; 2.1 The Supervisory Framework; 2.2 Stress Tests and Other Measures; 2.3 Resolution Procedures; 2.4 Complementary Macroeconomic Coordination Changes; 3 The Challenges and Next Stages; 3.1 Accommodating Different Interests; 3.2 The Role of the ECB; 3.3 Unfinished Business; 4 Conclusions
Appendix: The EU Legislative Programme on Financial RegulationReferences; Asia's Approach to Improve Financial Regulation; 1 The G20 and FSB as New International Forums for Financial Regulation and Supervision; 1.1 G20; 1.2 FSB; 2.2 Asia Speaking as One Voice; 3 Asia's Approach: Efforts Towards Regional Coordination; 3.1 Multilateral Forums; 3.2 Other Regional Dialogues; 3.3 Need for Emerging and Developing Economies' Perspectives; 4 Conclusion; Comment Paper to Chapters "The EU's Approach to Improving Financial Regulation" and "Asia's Approach to Improve Financial Regulation"
Comment Paper to Chapters "The EU's Approach to Improving Financial Regulation" and "Asia's Approach to Improve Financial Regulation"Part II: Monetary Policy; The European Central Bank and Implications of the Sovereign Debt Crisis; 1 Introduction; 2 The Interaction Between Monetary and Fiscal Dominance Against a Background of Financial Stability Concerns; 2.1 Theoretical Background; 2.2 Where Do We Stand in the Euro Area?; 2.2.1 Treaty Provisions; 2.2.2 The Policy of the ECB; 3 A Chronological Bird's Eye View of the 2007-2011 Financial Crisis
3.1 Financial Turmoil: 9 August 2007-14 September 20083.2 The Global Financial Crisis: 15 September 2008-7 May 2010; 3.3 Sovereign Debt Crisis: Today; 4 What Is the Reasoning Behind the ECB Policy Decisions?; 5 Some Concluding Remarks; Appendix; References; Comment Paper to Chapter "The European Central Bank and Implications of the Sovereign Debt Crisis"; Evolution of Quantitative Easing; 1 Introduction; 2 Role of Central Bank Balance Sheet; 3 Central Bank Balance Sheet Under Financial Crises; 4 Discussion; 4.1 Unconventional Policy Versus Policy Commitment
4.2 Portfolio Rebalancing Channel on Yield Curve4.3 Border with Fiscal Policy; 4.4 Acute Pain Versus Chronic Illness; 5 Concluding Remarks; References; Comment Paper to Chapter "Evolution of Quantitative Easing"; Lessons Learned, Lessons Not Learned and the Lessons to Be Learned: From the Asian Crisis to the European Crises; 1 The Asian Crisis; 1.1 Causes; 1.2 Lesson Learned; 1.3 The Asian View of Lessons Learned; 1.4 Applying the Lessons: Coping with Large Post-crisis Capital Inflows; 2 European Crisis; 2.1 Lessons Not Learned; 2.1.1 Crisis Prevention; 2.1.2 Crisis Management
2.2 Lessons to Be Learned
Includes bibliographical references and index.
During the past 4 years, faith in the present financial model has been shaken in terms of policy, regulation, the financial sector itself, and exchange-rate regimes. Past and present policies of the world’s most respected central banks have come under fire. Regulations that defined the system have undergone major reviews. Complicated financial instruments that provided new ways of financial intermediation have been exposed as culprits behind the financial meltdown. After 10 years of success, Europe’s single currency is under threat. In short, the established financial model not only has been unable to prevent the crisis but, arguably, has been a cause of it. There is no longer one obvious model that meets all needs. The burst of Japan’s bubble was followed by two “lost decades”. Before a contrite Japan completely adopted Western ways of finance, the “Lehman shock” hit, followed by the euro crisis. Monetary policy, financial regulation and the state of the financial sector all must be reconsidered. Currencies and exchange rates make up another important aspect of finance. If the Western model of finance is discredited, does that mean the dominance of Western currencies is also eroded? What does the crisis in the euro area tell us about exchange rate regimes in general? Clearly, a new model is needed, one that is conducive to both stability and prosperity. But who will provide it? This volume records the cumulative results of three EU Studies Institute (EUSI) conferences that have addressed these issues, and examines how Asia and Europe compare in the quest for the next financial model. While many books on Europe and Asia focus on integration and what Asia can learn from Europe, this book emphasizes mutual lessons in the common search for a new model.
European Economic Community literature.
International economics.
Regional economics.
Spatial economics.
Economic growth.
European Integration.
International Economics.
Regional/Spatial Science.
Economic Growth.