griffith-jones - time for a visible hand; lessons from the 2008 world financial crisis (2010)

[...]... of Barbados in 2006 xiii Acronyms ABS asset-backed securities ACT Association of Corporate Treasurers ADB Asian Development Bank AFL-CIO American Federation of Labor and Congress of Industrial Organizations AFTE ´ Association Francaise des Tresoriers d’Entreprise ¸ AIG American Insurance Group APEC Asia-Pacific Economic Cooperation ASBA Association of Supervisors of Banks of the Americas BCBS Basel... history, has also been dragged into the crisis Financial crises are not new, and the growing financial market liberalization since the 1970s has led to a good number of them The United States itself has experienced three of them: the banking crisis generated by excessive lending to Latin America (usually not recognized as a US banking crisis, as it was Latin America that at the end paid a heavy price a “lost... Group from 1995–2003, and previously was the Lead Financial Economist there Fernando J Cardim de Carvalho is a professor of economics at the Institute of Economics at the Federal University of Rio de Janeiro A former chairman of the National Association of Graduate Schools of Economics of Brazil, he has done consulting work for, among others, the National Development Bank of Brazil, the National Association... to the money market The final chapter in this section, Chapter 11, by Williams, attempts to analyze the national and international financial governance systems, their strengths and weaknesses A number of issues are explored and a number of recommendations made The author does not call for a total revamp of the financial governance structure, but rather for a number of improvements, among them some dealing... adequate self-insurance against reversal of capital inflows After a brief interruption, capital flows to emerging markets recovered strongly from the early 2000s, with Asia being among the main recipients Asian policy-makers did not generally opt for tighter restrictions over capital inflows In fact, Asian capital accounts are invariably more open today than they were during the 1997 crisis Rather than applying... market evaluations of risk at the heart of financial regulation, through external ratings and risk measures derived from market prices The essential problem is that market prices may improperly evaluate risk in the presence of market failures The second flaw was to assume that common standards, such as value-accounting and risk measures, are good and that diversity is bad, thus underestimating the advantages... problems played important roles in the financial market scandals of the late 1990s In this chapter, I want to show that they also have played an important role in the financial crisis of 2007–8 Financial markets are supposed to allocate capital and manage risk They did neither well Products were created which were so complicated that not even those that created them fully understood their risk implications;... incentives for market actors and regulators, have better and more transparent accounting frameworks, and provide for adequate, counter-cyclical capital requirements Stiglitz also calls for 3 Introduction institutional innovations, such as a financial products safety commission—to ensure the safety, efficacy, and appropriate use of new financial products—and a financial markets stability commission, to oversee the. .. of Financial Institutions of Brazil (ANDIMA), CEPAL, G-24 and NGOs like Ibase (Brazil), Action Aid USA and WEED (World Economy, Ecology and Development—Germany) Jane D’Arista is an economic analyst with the Financial Markets Center She has written on the history of US monetary policy and financial regulation, international and domestic monetary systems and capital flows to emerging economies She has... the wrong lessons from the last crisis It improved domestic regulation and transparency, strengthened external payments, and accumulated large reserves But its greater integration into the global financial system has meant that Asia has been exposed to greater risk, with little direct gain from access to more capital More importantly, Asia allowed itself to be more integrated into the global financial . to Latin America (usually not recognized as a US banking crisis, as it was Latin America that at the end paid a heavy price a “lost decade” of development), the savings and loan crisis of the late. Perspectives 12. The Management of Capital Flows and Financial Vulnerability in Asia 219 Yılmaz Akyu ¨ z 13. Regulation of the Financial Sector in Developing Countries: Lessons from the 2008 Financial Crisis. II. Reforming Financial Regulation 6. Central Banks, Liquidity, and the Banking Crisis 101 Philip Turner 7. Agenda and Criteria for Financial Regulatory Reform 126 Jane D’Arista and Stephany Griffith-Jones 8.