Globalization And Systemic Risk

by Evanoff, Douglas Darrell; Hoelscher, David S.; Kaufman, George G.

• ISBN13: 9789812833372
• ISBN10: 9812833374
• Format: Hardcover
• Copyright: 2009-01-05
• Publisher: World Scientific Pub Co Inc

Summary

The impact of globalization of financial markets is a highly debated topic, particularly in recent months when the issue of globalization and contagion of financial distress has become a focus of intense policy debate. The papers in this volume provide an up-to-date overview of the key issues in this debate. While most of the contributions were prepared after the initial outbreak of the current global turmoil and financial crisis, they identify the relative strengths of the risk diversification and risk transmission processes and examine the empirical evidence to date. The book considers the relative roles of banks, nonblank financial institutions and capital markets in both risk diversification and risk transmission. It then evaluates the current status of crisis resolution in a global context, and speculates where to go from here in terms of understanding, resolution, prevention and public policy. Book jacket.

Table of Contents

Preface	p. v
Acknowledgments	p. vii
Special Addresses	p. 1
Through the Looking Glass: The Links between Financial Globalization and Systemic Risk	p. 3
The Current Financial Crisis: Will Latin America Be Caught in the Web, Again?	p. 11
Remarks on Systemic Risk and the International Lender of Last Resort	p. 27
The Crisis of 2007: The Same Old Story, Only the Players Have Changed	p. 39
Current State of Financial Globalization	p. 51
Financial Globalization and Stability	p. 53
Does Financial Integration Improve Countries' Growth Opportunities?	p. 85
Financial Globalization in the Asian Region	p. 97
The Current State of Financial Globalization-Good News, and Bad	p. 113
Globalization and Systemic Risk-Theory	p. 119
Incentive Conflict in Central Bank Responses to Sectoral Turmoil in Financial Hub Countries	p. 121
Systemic Risk and Prudential Regulation in the Global Economy	p. 145
The Broad Yen Carry Trade	p. 169
Systemic Risk in a Global Context: Comment on Freixas, Hattori and Shin, and Kane	p. 191
Globalization and Systemic Risk-Nonbank Financial Intermediaries	p. 205
Remarks on Globalization and Systemic Risk: Nonbank Financial Intermediaries	p. 207
Globalization Duality and Nonbank Financial Intermediaries	p. 217
Pension Plans and Systemic Risk	p. 225
Globalization and Systemic Risk-Banks	p. 231
International Integration, Common Exposure and Systemic Risk in the Banking Sector	p. 233
The Systemic Risk Implications of Originate and Distribute	p. 251
Quantitative Modeling of Systemic Risk in a Globalized Banking System: Methodological Challenges	p. 275
Globalization and Systemic Risk	p. 291
Globalization and Systemic Risk-Capital Markets	p. 297
The Sub-Prime Crisis and Systemic Risk: Evidence from US Securities Markets	p. 299
Systemic Risks in Our Global Marketplace	p. 313
What Can Central Bankers Learn from Hedge Fund Replication Strategies?	p. 331
Comments on Session VI: Globalization and Systemic Risk-Capital Markets	p. 349
Crisis Resolution in a Global Context	p. 355
Global Crisis Management	p. 357
EU Financial-Stability Framework: Analytical Benchmarks for Assessing Its Effectiveness	p. 361
Crisis Resolution in a Global Context: Regulation and Supervision for Cross-Border Banking	p. 379
Crisis Resolution in a Global Context	p. 389
Where to Go from Here-Policy Panel	p. 395
Speaking Points for Where to Go from Here? Policy Panel	p. 397
The US Government's Approach to Financial Decisions	p. 403
Globalization and Systemic Risk: Where to Go from Here-Policy Panel	p. 409
Comments on Session VIII: Where to Go from Here-Policy Panel	p. 415
Basel II, Regulation and the Sub-Prime "Crisis"	p. 429
International Agenda	p. 437
Index	p. 441
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