Globalization and the International Financial System
What's Wrong and What Can Be Done

This book discusses the problematic side of the international financial system.

Peter Isard (Author)

9780521605076, Cambridge University Press

Paperback, published 20 December 2004

384 pages, 15 b/w illus. 5 tables
22.8 x 15.3 x 2.6 cm, 0.51 kg

'… it is important … there is a general sense that the international financial architecture needs serious reform … Secondly, how do we deal with sovereign financial distress without running up against 'nationalist resistance' as well as extra-economic issues such as national security and political governance? Thirdly, given the global nature of the desired reforms, how will the new financial architecture deal with issues of accountability and representation, as whatever shape the reform takes has crucial implications for many people? Isard's thesis could be summarised thus: globalisation, and in particular economic globalisation, has speeded up large international capital flows with greater possibilities for financial crisis, to which the international system is prone because a host of things are wrong with the way the current international financial architecture is shaped … Globalisation and its consequences, not just for the financial system, but also for areas such as energy, the environment, migration, public health, etc. will be issues for debate for some time to come and rightly so. In that context, Isard's contribution is a useful and recommended addition.' Development Policy Review

Economic globalization has given rise to frequent and severe financial crises in emerging market economies. Other countries are also unsuccessful in their efforts to generate economic growth and reduce poverty. This book provides perspectives on various aspects of the international financial system that contribute to financial crises and growth failures, and discusses the remedies that economists have proposed for addressing the underlying problems. It also sheds light on a central feature of the international financial system that remains mysterious to many economists and most non-economists: the activities of the International Monetary Fund and the factors that influence its effectiveness. Dr Isard offers policy perspectives on what countries can do to reduce their vulnerabilities to financial crises and growth failures, and a number of general directions for systemic reform. The breadth of the agenda provides grounds for optimism that the international financial system can be strengthened considerably without revolutionary change.

List of figures, tables and boxes
List of abbreviations
Acknowledgments and disclaimer
Part I. Background: 1. Introduction
2. The evolution of the international monetary system
3. The international monetary fund
Part II. International Financial Crises and Obstacles to Growth: 4. Factors contributing to international financial crises
5. The effects of crises and controversies over how to respond
6. Perspectives on economic growth and poverty reduction
Part III. The Agenda for Reform: 7. What can individual countries do?
8. How can the international financial system be reformed?
References
Author index
Subject index.

Subject Areas: Finance & accounting [KF], Political economy [KCP], Comparative politics [JPB]