Friday, February 28, 2014

FONAD - JJT - Global Imbalances and Developing Countries: Remedies for a Failing International Financial System

Forum on Debt and Development (FONDAD)
FONDAD is an independent policy research centre and forum for international
discussion established in the Netherlands. Supported by a
worldwide network of experts, it provides policy-oriented research on a
range of North-South problems, with particular emphasis on international
financial issues. Through research, seminars and publications,
FONDAD aims to provide factual background information and practical
strategies for policymakers and other interested groups in industrial,
developing and transition countries.
Director: Jan Joost Teunissen

Global Imbalances and Developing Countries Remedies for a Failing International Financial System

Edited by
Jan Joost Teunissen and
Age Akkerman

Acknowledgements ix
Notes on the Contributors x
Abbreviations xv

I/ Introduction 1
Jan Joost Teunissen

II/ Global Imbalances and the Implications for Africa 8
Louis Kasekende

1 Why Worry About the Global Imbalances? 9

2 Global Adjustment Scenarios 11

3 Where is Africa in All These? 12

4 Conclusion 17

III/ East Asia’s Role in Resolving the New Global Imbalances 19
Masaru Yoshitomi, Li-Gang Liu and Willem Thorbecke

1 The Nature of the New Global Imbalances 20

2 The Sustainability of the New Global Imbalances 23

3 Necessary Adjustment Policies in the US 25

4 East Asia’s Role in Resolving the Current Global Imbalances 27

5 Conclusion 32

IV/ An African Perspective: Comments on Yoshitomi, Liu and
Thorbecke 37

Brian Kahn

1 The Investment-Savings Balance and Exchange Rate Policies 37

2 Systemic Crises and Concerted Action 39

3 Accumulation of Foreign Reserves 40

4 Concluding Remarks 41

V/ Rebalancing Savings-Investment Gaps in East Asia 42
Yonghyup Oh and Seeun Jeong

1 Should East Asian Capital Be Relocated Within the Region? 44

2 Barriers to Capital Market Integration in East Asia 49

3 Concluding Remarks 52

VI/ The Need for a Longer Policy Horizon: A Less Orthodox Approach 57
William R. White

1 Secular Trends 59

2 Current Exposures: Do They Warrant a Policy Response? 71

3 Towards a Domestic Macrofinancial Stabilisation Framework? 77

4 Towards an International Macrofinancial Stabilisation Framework 86

5 Conclusion 88

VII/ Global Imbalances and the Role of the IMF 93
Ariel Buira and Martín Abeles

1 The Risk Posed by Global Macroeconomic Imbalances 95

2 The Fund’s Potential Role in Dealing With Global Imbalances 109

3 A G-20 Accord and the Need for a Counter-Cyclical Facility 114
4 Conclusion 119

VIII/ Global Imbalances and the Role of the IMF: A Comment on
Ariel Buira and Martín Abeles 124

Mark Allen

IX/ The Future of the International Monetary System 128
John Williamson

X/ A More Balanced International Monetary System 133
Jane D’Arista

1 Creating a Public International Investment Fund for Emerging Economies 135

2 Reforming the International Payments System 137

XI/ Reforming the International Monetary System: Comments on
Jane D’Arista and John Williamson 141

Henk Brouwer

XII/ A Response to the Comments of Henk Brouwer 145
Jane D’Arista

 Contents of the Previous Volume

Global Imbalances and the US Debt Problem: Should Developing
Countries Support the US Dollar?

I/ Should Developing Countries Support the US Dollar?
By Way of Introduction
Jan Joost Teunissen

II/ Global Imbalances and Emerging Markets
Barry Eichengreen and Yung Chul Park

III/ Global Imbalances and Latin America: A Comment on
Eichengreen and Park

Barbara Stallings

IV/ The Dilemmas and Dangers of the Build-Up of US Debt:
Proposals for Policy Responses

Jane D’Arista and Stephany Griffith-Jones

V/ Currency Asymmetry, Global Imbalances, and Rethinking of the
International Currency System

FAN Gang

VI/ China’s Macroeconomic Imbalances: The Liquidity Tango Mechanism
Wing Thye Woo

VII/ How Effective Is Monetary Policy in China? A Comment on
Woo’s “Inflationary Tango”

Zdenĕk Drábek

VIII/ Asian Monetary Coordination and Global Imbalances
Yonghyup Oh

IX/ Understanding Imbalances in a Globalised International
Economic System

Jan A. Kregel

X/ Policy Recommendations for the US, Europe and Asia:
By Way of Epilogue

Jan Joost Teunissen