Economic Management in a Volatile Environment Monetary and Financial Issues

Since the 1990s, several emerging market economies (EMEs) have, to varying degrees, embraced the process of 'financial globalisation', broadly defined as a set of policies that involve allowing for greater openness to cross-border capital flows as well as greater market access to foreign financial institutions. While the EMEs have surpassed the advanced economies in 2013 by accounting for over half of global output, they are not without their concerns. They have been faced with a variety of policy challenges owing to their increasing integration with global financial markets. This book discusses some of the challenges relating to macroeconomic and financial management in a volatile and uncertain world, brought about by greater financial openness. The emphasis of the book is on exploring the implications of a key set of issues emanating from financial globalisation on EMEs in a rigorous but readable manner.

Ramkishen S. Rajan is a Professor of International Economic Policy at the School of Public Policy (SPP), George Mason University (GMU). He is also a Visiting Professor and Adjunct Senior Research Fellow at the Asia Competitiveness Institute (ACI), Lee Kuan Yew School of Public Policy (LKYSPP), National University of Singapore (NUS).

Sasidaran Gopalan is Post Doctoral Research Fellow at the the Institute for Emerging Market Studies (IEMS) at the Hong Kong University of Science and Technology (HKUST).

PART I: EXCHANGE RATES, RESERVES AND CONTROLS
1. What is the Extent of Monetary Sterilisation in China? (With A. Ouyang and T.D. Willett)
2. What Determines Real Exchange Rate Fluctuations? (With A. Ouyang)
3. What is the Impact of Capital Controls? (With J. Li)
4. Can International Currency Taxation Stabilise Currency Fluctuations? (With G. Bird)
5. Why Do Countries Accumulate International Reserves? (With V. Yanamandra)
PART II: FINANCIAL CRISES, FINANCIAL LIBERALISATION AND FOREIGN BANK ENTRY
6. Comparing Financial Crises: What Lessons for Asia from the Eurozone Crisis?
7. Financial Liberalisation and Foreign Bank Entry: What is the Nexus?
8. Do Foreign Banks Enhance Banking System Efficiency?
9. How Do Foreign Banks Affect Firms' Access to Credit?
10. Why Do Banks Go Abroad?