Table of Contents
Acknowledgments v
Contributors xi
Chapter 1 Introduction 1
Chapter 2 Financial Reform after the Crisis 7
1 Introduction 7
2 The Dynamics of Financial Reform 9
2.1 TheG20 10
2.2 The IMF and the FSB 12
2.3 Individual jurisdictions 13
2.4 Crisis-induced shifts 15
3 Challenges and Outlook 18
3.1 Ongoing crisis management 19
3.2 Macroprudential approaches 21
3.3 Regulating multinational financial firms 23
3.4 Consistent implementation of global standards 24
3.5 Financial systems and growth 25
References 26
Chapter 3 Did WTO Rules Restrain Protectionism During the Recent Systemic Crisis? 29
1 Introduction 29
2 Twenty-First Century Protectionism During a Systemic Financial Crisis: Some Preliminary Considerations 32
3 The Resort to Discrimination Against Foreign Commercial Interests Since the First Crisis-Era G20 Summit in November 2008 40
4 An Assessment of the Impact of WTO Rules During the Recent Systemic Crisis 65
5 Concluding Remarks 73
References 74
Chapter 4 The International Monetary System after the Financial Crisis 77
1 The Global Reserve System 79
2 The Emergency Provision of Liquidity 85
3 Regulating Capital Flows 90
4 The Role of the IMF 93
5 Conclusion 97
References 98
Chapter 5 The Group of 20: Trials of Global Governance in Times of Crisis 101
1 Benefits from International Coordination: Reviewing the Arguments 104
2 A Narrative of the G20 in Times of Crisis 106
2.1 Washington (November 2008) 106
2.2 London (April 2009) 109
2.3 Pittsburgh (September 2009) 111
2.4 Toronto and Seoul (June and November 2010) 113
2.5 Cannes (November 2011) 117
3 Scoreboards of Success 121
4 Taking Stock and Looking Forward 124
References 127
Chapter 6 Emerging Markets in the Aftermath of the Global Financial Crisis 129
1 Introduction 129
2 Rising Prominence of EMEs 131
3 The Distribution of World Growth 136
4 What Explains the Resilience of Emerging Markets? 140
5 Global Public Debt and Implications for the Growth Gap 143
6 Risks 147
7 Concluding Remarks 149
References 150
Chapter 7 Challenges for Emerging Asia 153
1 Introduction: Asia's Recovery from the Global Financial Crisis 153
2 Transition from Exports to Domestic Demand 157
3 Killing the Inflation Dragon 160
4 Risk of the Middle Income Trap 162
5 The Rise of China and the Future of Regional Cooperation 167
6 Conclusion 169
References 170
Chapter 8 Long-Term Challenges for the Advanced Economies: Reducing Government Debt 173
1 Introduction 173
2 Projected Paths of Government Debt 175
2.1 General government primary balances 175
2.2 Size of economies (GDP) 177
2.3 Interest rates 177
2.4 Baseline debt projections 178
2.5 The optimistic and pessimistic health care cost scenarios 184
2.6 Two interest rate scenarios 185
2.7 The optimistic growth scenario 186
2.8 The pessimistic growth scenario 187
2.9 Implications of net debt projections 188
3 The Burden of Debt and Fiscal Limits 188
3.1 Effect of debt on interest rates and interest payments 189
3.2 The limits of debt 192
3.3 Fiscal crises 196
4 Paths to Safety 200
4.1 Gradual (early) adjustment 202
4.2 Abrupt (delayed) adjustment 203
4.3 Benefits of early and gradual adjustment 204
5 Conclusion 204
References 205
Index 209
