Search results

1 – 10 of 285
Open Access
Article
Publication date: 31 December 2003

Young ll Park and Seung Moon

The 1997-98 financial crisis has had a profound effect on how East Asian economies the role of the IMF and its strategic interests relative to those of the United States in the

Abstract

The 1997-98 financial crisis has had a profound effect on how East Asian economies the role of the IMF and its strategic interests relative to those of the United States in the international financial regime. It has prompted them to create a regional mechanism for financial and monetary cooperation, ranging from deeper policy dialogue and surveillance, to a system of financial cooperation, and common exchange rate arrangements. This paper analyses the economic and strategic motivations behind this and outlines recent developments in financial cooperation in East Asia to provide possible directions for the future.

A network of bilateral swap arrangements under the Chiang Mai Initiative(CMI) needs stronger policy dialogue and surveillance to develop into a regional financing facility, a sort of East Asian IMF. The facility plays a role as an regional lender of last resort, providing short-term funds to a member country facing a temporary liquidity shortage and for market intervention to stabilize foreign exchange rate. East Asian countries need to achieve regional exchange rate stability. In the long run, the region may develop a common currency arrangement, but it cannot be expected in the very near future because there is no convergence of macroeconomic conditions, economic structure and systems. A realistic approach would be for East Asian developing countries to adopt a currency basket system to minimize the impact of dollar/yen exchange rate volatility on their economies. Strong political will and a vision for regional integration will be required to introduce it.

Details

Journal of International Logistics and Trade, vol. 1 no. 1
Type: Research Article
ISSN: 1738-2122

Book part
Publication date: 23 December 2005

Justin W. Iu

The Asian Monetary Fund, proposed during the 1997–1998 Asian Financial Crisis, was an attempt by East Asian nations to develop collective policy responses to financial crises and…

Abstract

The Asian Monetary Fund, proposed during the 1997–1998 Asian Financial Crisis, was an attempt by East Asian nations to develop collective policy responses to financial crises and provide rapid distribution of emergency funding. It was envisaged that policy prescriptions would exhibit greater regional sensitivity and prevent contagion. The proposal was rejected because of the perceived perpetuation of moral hazard, duplication and conflict with the International Monetary Fund and belief that historical disunity would prevent successful collaboration. This paper advocates, in the context of international financial architecture reform, enhanced East Asian regionalism is crucial to prevent and manage future financial crises.

Details

Asia Pacific Financial Markets in Comparative Perspective: Issues and Implications for the 21st Century
Type: Book
ISBN: 978-0-76231-258-0

Article
Publication date: 28 December 2018

Guoyou Song

The purpose of this paper is to study key economic strategies in Asia laid out by the Chinese Government since Xi Jinping became the General Secretary of the Central Committee of…

Abstract

Purpose

The purpose of this paper is to study key economic strategies in Asia laid out by the Chinese Government since Xi Jinping became the General Secretary of the Central Committee of the Communist Party of China.

Design/methodology/approach

The paper is composed of six parts. The first part analyzes China’s Asian trade strategy with a focus on the free-trade agreement. The second part elaborates the Asian finance and currency strategy with the core being the regionalization of RMB. The third part introduces China’s newly proposed Belt and Road Initiative (B&R). The fourth part deals with the China–USA economic relationship with a view to China’s economic strategy in Asia. The fifth part explains China’s domestic economic policy which forms the basis of the Asian Economic Strategy.

Findings

A marked change has taken place in China’s economic strategy in Asia, namely, giving more consideration to how to offer more public goods to the region. This is natural as China’s economic power is developed to a certain level and it is highly related to China’s attempt to growing its economic influence in this region. China believes that the B&R Initiative and Asian Infrastructure Investment Bank are both public goods China has provided to Asia. China’s economic strategy in Asia demonstrates that China, as a rising power, though faced with domination of established power and the original regional economic rule system, still promotes the cooperation, integration, participation and development of this region. In general, China’s economic strategy in Asia offers an alternative for countries in this region so that Asian countries can better safeguard their rights amid China–America competition, and a new Asian economic order can be better built.

Originality/value

The paper contributes to the researched area of China’s economic strategy in Asia by comprehensively elaborating its trade, money, B&R Initiative and so on. This paper also shows the major challenges of China’s economic strategy in Asia and therefore is helpful to fully understand China’s economic statecraft.

Details

Asian Education and Development Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2046-3162

Keywords

Open Access
Article
Publication date: 31 December 2011

Min Ha Lee and Inkyo Cheong

The major economies of East Asia, namely Japan and the Four Asian Tigers, have always prioritized the WTO-led multilateral trade liberalization over other trade arrangements…

Abstract

The major economies of East Asia, namely Japan and the Four Asian Tigers, have always prioritized the WTO-led multilateral trade liberalization over other trade arrangements primarily due to their unique economic structure with a high dependency on the world’s major markets such as the US. Along the same line, even the huge blow from the Asian Financial Crisis in 1997 only managed to trigger a few initiatives to aide East Asian regional integration while being led by different centering bodies, APEC and ASEAN. These dispersed efforts naturally resulted in no realistically significant achievements in the light of ‘integration’ until the present day. Under these circumstances, East Asia now faces a second opportunity to achieve its economic independence from the extra-regional influences via regionalization: the 2009 Global Credit Crunch. This paper hereupon critically reviews the actual progress and the likely impacts of the current global recession on the East Asian region.

Details

Journal of International Logistics and Trade, vol. 9 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Book part
Publication date: 28 August 2015

Tsutomu Kikuchi

Why have so many overlapping regional institutions been established in the Asia-Pacific? Is there any possibility of a convergence of these institutions into a single (or a few…

Abstract

Why have so many overlapping regional institutions been established in the Asia-Pacific? Is there any possibility of a convergence of these institutions into a single (or a few) “authoritative” regional institution(s)? What implications do the emerging overlapping regional institutions have for an evolving regional architecture in Asia? I argue first that the proliferation of regional institutions reflects complicated strategies taken by the countries to respond to the increased insecurity and uncertainty caused by the structural changes. Second, the countries of the region are taking a variety of national strategies through regional institutions, ranging from engagement to soft balancing and risk-hedging, to respond to these changes. Third, all the states of the region want to maintain a variety of institutional choices to respond to their uncertain futures. Fourth, what makes the institution-building so complicated lies in the fact that there are two major (and uncertain) powers to whom the regional countries have to respond through regional institutions: the United States and China. This makes the bargaining game for regional institution-building more complicated and competitive. Fifth, the amalgamation or convergence of the existing institutions into a single (or few) “authoritative” institution(s) through “institutional competition” will not take place in the foreseeable future. Sixth, the countries of the region may engage in “forum shopping.” Seventh, the roles of these institutions have been and will be quite modest. However, the regional institutions could to some extent contribute to moderating inter-state tensions and putting institutional constraints on the deviant behaviors of member countries.

Details

Asian Leadership in Policy and Governance
Type: Book
ISBN: 978-1-78441-883-0

Keywords

Book part
Publication date: 8 March 2011

Junko Shimizu and Eiji Ogawa

We investigate fluctuations in the nominal effective exchange rates (NEERs) of East Asian currencies and the Asian monetary unit (AMU), which is computed as a weighted average of…

Abstract

We investigate fluctuations in the nominal effective exchange rates (NEERs) of East Asian currencies and the Asian monetary unit (AMU), which is computed as a weighted average of East Asian currencies during the global financial crisis. We find that NEERs were more stable for countries that continued to follow a currency basket system during the global financial crisis.

Furthermore, we investigate the relationships among NEERs, AMU, and AMU deviation indicators, which indicate the extent of the deviation in the exchange rate of each East Asian currency from a benchmark rate given in terms of the AMU. By comparing NEERs with a combination of AMU and AMU deviation indicators, we find that there is a strong relationship between them, both before and after the global financial crisis. These results indicate that a coordinated exchange rate policy aimed at stabilizing the AMU deviation indicators will be effective in stabilizing the NEERs of East Asian currencies. In this respect, the AMU deviation indicators, which indicate intraregional exchange rates among East Asian currencies, play a crucial role.

Because NEER trade weights are widely similar among East Asian currencies, a policy aimed at stabilizing a home currency against its NEER may lead to a coordinated exchange rate policy without a common consensus among East Asian countries. In the future, however, coordinated monetary policies should be considered along with coordinated exchange rate policies.

Executive summary
Publication date: 7 December 2023

ASEAN/EAST ASIA: Key facility would boost ties

Article
Publication date: 1 March 2005

Iwan J. Azis

Managing financial sector under a liberalized system is always difficult; it faces a risk of financial crisis. Financial managers in most emerging markets, be it in the corporate…

565

Abstract

Managing financial sector under a liberalized system is always difficult; it faces a risk of financial crisis. Financial managers in most emerging markets, be it in the corporate, banking or public sector, have experienced such a challenge, and those in East Asia have learned the hard lesson during the 1997–98 financial crisis. Although efforts have been made to restructure the domestic financial sector by imposing a better risk analysis, in a world of free capital flows there is no guarantee that the system can be totally impervious to a crisis. This implies that financial managers will continue to face a major challenge in terms of how to manage and prevent a financial catastrophe. They have given a particular attention to a possible cooperation with one another. In the case of East Asia, this will lead to the formation of a Regional Financial Arrangement (RFA). This study analyzes this process by focusing on the search for a particular form of RFA that would enable financial managers to better deal with the challenge of a crisis and prevent it whenever possible. Given the fact that the issue and the process of forming a regional cooperation/arrangement involves not only economic considerations but also political factors and other intangibles, a specific model known as the Analytic Network Process (ANP) is employed. It is revealed that financial managers and policy makers alike should not only consider the benefits and costs of each alternative form of RFA, but also the possible risks and opportunities that may arise. The extent to which financial managers will be able to cope with the challenge of a financial crisis depends on all these factors.

Details

International Journal of Organizational Analysis, vol. 13 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

Expert briefing
Publication date: 25 July 2019

Efforts in South-east Asia to reduce reliance on the dollar.

Expert briefing
Publication date: 6 February 2017

Cooperation between South-east Asian countries on currencies.

1 – 10 of 285