The Global Financial Governance Architecture, Developmental Finance, and the Hirschmanian Mindset

I advance three claims in the paper. The first claim is positive. The Asian and especially the global financial crisis occasioned meaningful though ad hoc, partial, and uneven discontinuities in developmental finance and financial governance architecture. The conjunction of discontinuities and continuities is imparting incoherence to the financial governance architecture and developmental finance. The second claim is normative. I hold, contrary to the common narrative, that the emergent incoherence is productive rather than debilitating. In the absence of an over-arching, coherent model of financial governance EMDEs today are experiencing a dramatic expansion in policy space and room for institutional experimentation. Especially in comparison with the stultifying coherence of the neoliberal era, EMDEs enjoy a degree of autonomy to pursue economic and human development and to introduce reforms that promote financial stability, resilience in the face of disturbances, and financial inclusion. Emergent redundancy and networks of institutional cooperation are increasing resilience. The third claim is that productive incoherence can be understood most fully within a “Hirschmanian mindset,” i.e., an understanding of social and regime change informed by Albert O. Hirschman’s key theoretical and epistemic commitments. The Hirschmanian vision that underpins the paper’s central theses recognizes that meaningful change can and should come about through the proliferation of small scale, disconnected, experimental, and incremental adjustments in institutions and practices that take root in the concrete demands facing policymakers with the capacity to adjust pragmatically to the changing circumstances and challenges they face

Privacy in Cross-border Digital Currency. A Transatlantic Approach

This paper is one of four publications launched at the inaugural Frankfurt Forum on US-European GeoEconomics held in Germany from September 27 – 29, 2022. Co-hosted by the Atlantic Council GeoEconomics Center and Atlantik-Brücke, the Frankfurt Forum anchors critical work on transatlantic economic cooperation. The war in Ukraine, and the G7 response, reminded the world of the impact of transatlantic coordination. As part of the Frankfurt Forum, this new research aims to advance transatlantic dialogue from crisis response to addressing the key economic issues that will underpin the US-EU partnership over the next decade. The goal of the Frankfurt Forum is to deliver a blueprint for cooperation in four key areas: digital currencies, monetary policy, international trade, and economic statecraft

Global Financial Regulatory Reforms:Implications for Developing Asia

The objective of global regulatory reform is to build a resilient global financial system that can withstand shocks and dampen, rather than amplify, their effects on the real economy. Lessons drawn from the recent crisis have led to specific reform proposals with concrete implementation plans at the international level. Yet, these proposals have raised concerns of relevance to Asia’s developing economies and hence require further attention at the regional level. We argue that global financial reform should allow for the enormous development challenges faced by developing countries—while ensuring that domestic financial regulatory systems keep abreast of global standards. This implies global reforms should be complemented and augmented by national and regional reforms, taking into account the very different characteristics of emerging economies’ financial systems from advanced economies. Key areas of development focus should be (i) balancing regulation and innovation, (ii) establishing national and cross-border crisis management and resolution mechanisms, (iii) preparing a comprehensive framework and contingency plan for financial institution failure, including consumer protection measures such as deposit insurance, (iv) supporting growth and development with particular attention to the region’s financial needs for infrastructure and for SMEs, and (v) reforming the international and regional financial architecture.financial regulatory reform; global financial architecture; G-20; Asia; national and regional reform

Virtual Currencies Bitcoin & What Now After Liberty Reserve, Silk Road, and Mt. Gox?

During 2013, the U.S. Treasury Department evoked the first use of the 2001 Patriot Act to exclude virtual currency provider Liberty Reserve from the U.S. financial system. This article will discuss: the regulation of virtual currencies, cybercrimes and payment systems, darknets, Tor and the “deep web,” Bitcoin; Liberty Reserve, Silk Road, and Mt. Gox. Virtual currencies have quickly become a reality, gaining significant traction in a very short period of time, and are evolving rapidly

Reconceptualizing Japan's Role During Economic Shocks : A Role Theory Analysis of Japan's National Role Conceptions and Shifts during the Global Financial Crisis and the Covid-19 Economic Recession

This thesis examines Japan's role within the International Monetary Fund (IMF) and the Chiang Mai Initiative Multilateralization (CMIM) during the global financial crisis (GFC) and the COVID-19 economic recession. The study utilizes role theory and document analysis and content analysis to explore how Japan's national role conceptions and role enactments within these institutions reflect its position within global and regional economic and financial governance structures. The research reveals that Japan's contributions to stabilizing global and regional economic and financial systems during times of crisis have been significant, with its role enactments encompassing supporting institutions and their reform efforts, providing liquidity, and guiding them through experience and leadership. However, Japan's role within these structures has undergone shifts, with its role enactments not always aligning with the role expectations of the institutions. The study highlights the complexity of global and regional financial governance architectures, the power struggles for leadership and responsibility, and the challenge of creating legitimacy and operationalizing loan policies during economic crises. Overall, the research emphasizes the importance of Japan's role in promoting international values and its leadership in multilateral economic cooperation

Capital account liberalization in China: the need for a balanced approach

This repository item contains a single issue of the Pardee Center Task Force Reports, a publication series that began publishing in 2009 by the Boston University Frederick S. Pardee Center for the Study of the Longer-Range Future.This is the third report stemming from the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development, a project of the Global Economic Governance Initiative (GEGI) at Boston University. This report is the collective work of experts examining the benefits and risks of accelerated capital account liberalization in China. The contributing authors – all leading scholars and practitioners from around the world (listed below) – met at Boston University in February 2014 to discuss the experiences of other emerging market countries that liberalized the capital account to glean lessons for China as it considers this delicate task. This volume is an outcome from that meeting, presenting the authors’ perspectives on important aspects of capital account liberalization that China should pay special attention to, not only for its own sake, but also in consideration of the potential impacts that China’s actions may have on other emerging markets and the global economy overall

"CROSS-TRAINING" MBA STUDENTS IN INFORMATION SYSTEMS AND FINANCE

Information Systems Working Papers Serie

Sovereign Debt and Currency Crises Prediction Models Using Machine Learning Techniques.

This research was funded by Cátedra de Economía y Finanzas Sostenibles, Universidad de Málaga, Spain. Partial funding for open access charge: Universidad de MálagaSovereign debt and currencies play an increasingly influential role in the development of any country, given the need to obtain financing and establish international relations. A recurring theme in the literature on financial crises has been the prediction of sovereign debt and currency crises due to their extreme importance in international economic activity. Nevertheless, the limitations of the existing models are related to accuracy and the literature calls for more investigation on the subject and lacks geographic diversity in the samples used. This article presents new models for the prediction of sovereign debt and currency crises, using various computational techniques, which increase their precision. Also, these models present experiences with a wide global sample of the main geographical world zones, such as Africa and the Middle East, Latin America, Asia, Europe, and globally. Our models demonstrate the superiority of computational techniques concerning statistics in terms of the level of precision, which are the best methods for the sovereign debt crisis: fuzzy decision trees, AdaBoost, extreme gradient boosting, and deep learning neural decision trees, and for forecasting the currency crisis: deep learning neural decision trees, extreme gradient boosting, random forests, and deep belief network. Our research has a large and potentially significant impact on the macroeconomic policy adequacy of the countries against the risks arising from financial crises and provides instruments that make it possible to improve the balance in the finance of the countries