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International Financial Architecture (international + financial_architecture)
Selected AbstractsTowards a More Rational IMF Quota Structure: Suggestions for the Creation of a New International Financial ArchitectureDEVELOPMENT AND CHANGE, Issue 3 2000Raghbendra Jha The authors of this article argue that, in the absence of a well-founded quota formula, the very basis of the creation of the IMF as an institution at the centre of international financial arrangements was flawed; that there is no clear rationale for the determinants of quota structures and their weighting scheme; and that the quota allocation as an instrument seeks to target too many objectives. As a result, large and arbitrary cross-country variations exist in the relative impact of different determinants on the quota shares of different countries. The quota formulas therefore need to be reviewed and an alternative approach evolved, in which emphasis is placed on the size of the economy rather than its openness, along with efficiency parameters. The authors suggest some principles which might underpin redefined quota structures in support of a new financial architecture. They provide illustrative calculations using India as a case study, and trace the impact of the redefined quota structures against the backdrop of the impact of the Eleventh General Review on India's quota position. [source] Analysing UDROP: An Instrument for Stabilizing the International Financial ArchitectureINTERNATIONAL FINANCE, Issue 1 2001Axel LindnerArticle first published online: 16 DEC 200 This paper analyses implications of a proposal, called UDROP, to reform the standards of international debt contracts. The idea is to give borrowers a roll-over option at maturity for a specified length of time. Using recently developed models of financial crises, the paper shows for which type of crisis UDROP is beneficial. Moral hazard of the borrower is one of the problems UDROP faces which can be addressed by appropriately designing the debt contract. [source] The International Financial Architecture: Old Issues and New InitiativesINTERNATIONAL FINANCE, Issue 1 2002Peter B. Kenen Reform of the international financial architecture has made progress but has not dealt decisively with the need to involve private sector creditors in resolving debt-related crises. It has relied unduly on voluntary approaches combined with large-scale official financing. A comprehensive approach requires the use of temporary standstills to protect debtors against litigation. These can help to resolve ,liquidity' crises as well as ,solvency' crises. Proposals by Krueger (2001, 2002) provide a way to resolve the problem of a sovereign debtor with an unsustainable debt burden but offer no solution to problems involving private sector debt or to liquidity crises. They would also require an amendment to the Articles of Agreement of the International Monetary Fund, which could prove difficult. This paper proposes a less radical approach , adding rollover clauses and collective-action clauses to sovereign and private debt contracts, backed by strict limits on IMF financing. It resembles, but goes further than, the contractual approach favoured by the US Treasury. [source] Neue internationale Finanzarchitektur: Defizite und HandlungsoptionenPERSPEKTIVEN DER WIRTSCHAFTSPOLITIK, Issue 3 2000Michael Frenkel The recent debate about a new international financial architecture, i.e. a reform of the international financial system, is strongly influenced by current events. In contrast to this the paper puts the problem into the framework of Ordnungspolitik. Beginning with the development of the recent discussion and shortcomings in the international financial system, we discuss fundamental reform proposals in brief and reform steps already realized at greater length. [source] EXCHANGE RATE REGIMES AND MONETARY COOPERATION: LESSONS FROM EAST ASIA AND LATIN AMERICA,THE JAPANESE ECONOMIC REVIEW, Issue 3 2004TAKATOSHI ITO This paper analyses the mechanisms of, and draws lessons from, currency crises in Asian and Latin American countries in the 1990s and 2000s. In Asian countries fiscal deficits were insignificant in size, and were not part of a crisis trigger, while in Latin America they played a major role in the crisis story. Crisis management by international financial institutions has been evolving over the last 10 years, and private-sector involvement (PSI) has occupied centre-stage in efforts to reform the international financial architecture. Sovereign debts, a focus of PSI discussions, were neither a cause nor a propagation of the Asian crises. [source] | ||||||||||