The global financial crisis has led to a sweeping reevaluation of financial market regulation and macroeconomic policies. Emerging markets need to balance the goals of financial development and broader financial inclusion with the imperative of strengthening macroeconomic and financial stability. The third in a series on emerging markets, "New Paradigms for Financial Regulation" develops new analytical frameworks and provides policy prescriptions for how the frameworks should be adapted to a world of more free and more volatile capital.
This volume provides an overview of the global regulatory landscape from the perspective of Asian emerging markets. The contributors discuss the many challenges ahead in developing sound and flexible financial regulatory systems for emerging market economies. The challenges are heightened by the rising integration of these economies into global trade and finance, the growing sophistication of their financial systems as globalization and emergence processes accelerate, and their potential vulnerability to instability arising from the financial markets in the advanced economies.
The contributors provide guidance about pitfalls to be avoided, general principles that should guide the creation of sound regulatory systems, and valuable analytic perspectives about how to continue to broaden the financial sector and innovate while still maintaining financial and macroeconomic stability.
About the Author
Masahiro Kawai is Professor at the Graduate School of Public Policy, University of Tokyo. He was Dean and CEO of the Asian Development Bank Institute (ADBI) from January 2007 to February 2014. He holds a PhD in economics from Stanford University.
Eswar S. Prasad is the Tolani Senior Professor of Trade Policy at Cornell University, a senior fellow at the Brookings Institution, and a research associate at the National Bureau of Economic Research. He is a former head of the IMF s China division.