The Financial Crisis and the Global South

Yilmaz Akyüz

Description

This book is a major contribution exploring the policy options available for developing and emerging economies in response to the global economic crises.



Written by a highly respected development economist, the book gives a clear-eyed account of the issues particular to these countries and critically evaluates different policy approaches, including reforms in financial, monetary and trade policies. Informed by deep scholarship as well as practical experience, Yilmaz Akyuz draws on empirical data, historical context and theoretical expertise, with special attention paid to issues such as the role of the International Monetary Fund and China.



The Financial Crisis and the Global South is a landmark book that will be of interest to practitioners, scholars, theorists and students of economics and development studies.
Introduction

1. Policy Response to the Global Financial Crisis: Key Issues for Developing Countries

2. Global Economic Prospects: The Recession May Be Over But Where Next?

3. Export Dependence, Sustainability of Growth and Adjustment in China

4. The Subprime Boom-Bust Cycle and Capital Flows to Developing Countries

5. Why the IMF and the International Monetary System Need More Than Cosmetic Reform

Conclusions

References

Sujets

• Economic Development
• América del Sur
• Development studies
• Development economics
• South America
• Latin America
• Economics
• Central America
• Development
• SS Central America
• Business
• Asia

Informations

• Publié par: Pluto Press
• Date de parution: 05 avril 2013
• Nombre de lectures: 0
• EAN13: 9781849648943
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

The Financial Crisis and the Global South

The Financial Crisis and the Global South

A Development Perspective

Yılmaz Akyüz

In association with South Centre

FîrsT publîsed în Malaysîa by SouT CenTre în 2012 as Financial Crisis and Global Imbalances: A Development Perspective

Publîsed 2013 by PluTo Press 345 Arcway Road, London N6 5AA

www.pluTobooks.com

DîsTrîbuTed în Te UnîTed STaTes of Amerîca exclusîvely by Palgrave Macmîllan, a dîvîsîon of ST. MarTîn’s Press LLC, 175 Fît Avenue, New York, NY 10010

CopyrîgT © Yılmaz Akyüz 2012

he rîgT of Yılmaz Akyüz To be îdenTîied as Te auTor of Tîs work as been asserTed by îm în accordance wîT Te CopyrîgT, Desîgns and PaTenTs AcT 1988.

BrîTîs Lîbrary CaTaloguîng în PublîcaTîon DaTa A caTalogue record for Tîs book îs avaîlable from Te BrîTîs Lîbrary

ISBN ISBN ISBN ISBN ISBN

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hîs book îs prînTed on paper suîTable for recyclîng and made from fully managed and susTaîned foresT sources. Loggîng, pulpîng and manufacTurîng processes are expecTed To conform To Te envîronmenTal sTandards of Te counTry of orîgîn.

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SîmulTaneously prînTed dîgîTally by CPI AnTony Rowe, Cîppenam, UK and Edwards Bros în Te UnîTed STaTes of Amerîca

C O N T E N T S

I N T R O D U C T I O N

C H A P T E R 1 POLI CY RESPONSE TO THE GLOBAL FI NANCI AL CRI SI S: KEY I SSUES FOR DEVELOPI NG COUNTRI ES

A. INTRODUCTION

B. POLICY RESPONSE IN DEEs: PAYMENTS CONSTRAINT  AND INTERNATIONAL SUPPORT

C. REFORM OF THE INTERNATIONAL FINANCIAL  ARCHITECTURE

D. SUMMARY OF POLICY CONCLUSIONS AND PROPOSALS

C H A P T E R 2 GLOBAL ECONOMI C PROSPECTS: THE RECESSI ON MAY BE OVER BUT WHERE NEXT?

A. ISSUES AT STAKE

B. BUBBLES, EXPANSION AND IMBALANCES

C. CRISIS, RECESSION AND RECOVERY

D. NO RETURN TO “BUSINESS AS USUAL”  − NEED FOR US ADJUSTMENT

ix

1

1

3

12

32

37

37

40

41

44

E. CHINA TOO NEEDS TO ADJUST,  BUT IT CANNOT BE A GLOBAL LOCOMOTIVE

F. BRINGING IN THE BYSTANDERS: GERMANY AND JAPAN

G. EXCHANGE RATE ADJUSTMENTS

H. REMOVING THE DEFLATIONARY BIAS IN THE  INTERNATIONAL FINANCIAL ARCHITECTURE

I. CONCLUSIONS

C H A P T E R 3

EXPORT DEPENDENCE, SUSTAI NABI LI TY OF GROWTH AND ADJ USTMENT I N CHI NA

A. INTRODUCTION

B. MEASUREMENT OF CONTRIBUTION OF EXPORTS  TO ECONOMIC GROWTH

C. IMPORT CONTENT OF EXPORTS

D. TO WHAT EXTENT IS GROWTH IN CHINA EXPORTLED?

C H A P T E R 4

THE SUBPRI ME BOOM BUST CYCLE AND CAPI TAL FLOWS TO DEVELOPI NG COUNTRI ES

A. INTRODUCTION

B. PREVIOUS POSTWAR BOOMBUST CYCLES

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56

58

61

63

63

66

69

75

87

87

92

C. CAPITAL FLOWS IN THE 2000s

D. THE CHANGING NATURE OF CAPITAL FLOWS

E. CHANGING VULNERABILITIES TO BOOMBUST CYCLES

F.

THE IMPACT OF RECENT CAPITAL FLOWS ON DEEs

G. WHAT IS NEXT?

H. MANAGING CAPITAL INFLOWS

I.

CONCLUSIONS

C H A P T E R 5

95

108

113

115

121

126

131

WHY THE I MF AND THE I NTERNATI ONAL MONETARY SYSTEM NEED MORE THAN COSMETI C REFORM 133

A. INTRODUCTION

B. THE IMF’S FAILURES IN FINANCIAL ANALYSIS  AND EARLY WARNING

C. IMF SURVEILLANCE AND MEMBERS’ OBLIGATIONS

D. THE INTERNATIONAL RESERVES SYSTEM

E. CRISIS INTERVENTION AND LENDING

F.

CONCLUSIONS

R E F E R E N C E S

133

138

143

154

162

170

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I N T R O D U C T I O N

This book is a collection of papers written for the South Centre during 2009 2011 on the global crisis triggered by speculative lending and investment in the United States and Europe – its actual and potential effects on developing and emerging economies (DEEs), the immediate international policy response needed in order to contain the damage and to restore stability and growth, and global systemic reforms that need to be introduced with a view to reducing the likelihood of such crises and managing them better if and when they occur. Chapter 1, originally published in May 2009, provides an overview of the key issues regarding the policy response to the crisis from the point of view of DEEs. It discusses both the immediate countercyclical measures that need to be undertaken at the national and international levels and the reform of the international financial architecture. While recognizing that many DEEs had considerable policy space to counter destabilizing and deflationary impulses from the crisis, it is argued that several poorer countries faced resource constraints. Even though they could use trade and financial policies to ease the tightened payments constraint resulting from reduced private capital flows and exports, in most cases effective policy response depended crucially on the provision of adequate international liquidity on appropriate terms and conditions through multilateral financial institutions. The paper then goes on