Recurrent instability has characterized the global financial system since the 1980s. This instability and the resultant disruptions - to financial and foreign exchange markets, causing bankruptcies and sovereign debt defaults - are linked, in this book, to shortcomings of the global financial system which tend to generate cycles of boom and bust in credit flows. These cycles are set in motion by the monetary impulses of major industrial countries and are amplified and propagated through the operation of global financial markets. Fabrizio Saccomanni argues that to counter such systemic instability requires that national authorities give adequate weight to financial stability objectives when formulating their monetary and regulatory policies. He maintains that appropriate multilateral strategies to deal with unsustainable trends in credit aggregates and asset prices should be devised in the institutions of international monetary and financial cooperation.
Author(s): Fabrizio Saccomanni
Publisher: Edward Elgar Pub
Year: 2008
Language: English
Pages: 304
COVER......Page 1
Copyright......Page 4
Contents......Page 5
Figures......Page 8
Tables......Page 9
Abbreviations......Page 10
Foreword......Page 13
Preface......Page 17
PART I The tigers, the tamers, the circus......Page 21
1. An uneasy relationship......Page 23
2. Global financial players......Page 31
3. Monetary and financial authorities......Page 55
4. The global market for foreign exchange......Page 83
PART II Global finance between crisis and reform......Page 107
5. The crises of global finance......Page 109
6. In search of international monetary and financial stability......Page 160
PART III Challenging the tigers......Page 193
7. A cage for the dollar: the Plaza and Louvre Accords (1985-87)......Page 195
8. The seven-year war of the French franc (1991-98)......Page 206
9. The resistible rise of the yen (1995)......Page 218
10. Double play in Hong Kong (1998)......Page 225
11. A safety net for the euro (2000)......Page 231
12. The great wall of the Chinese renminbi (1994-2005)......Page 238
13. How did they do it?......Page 244
PART IV Epilogue......Page 247
14. The golden mean......Page 249
Bibliography......Page 269
Index......Page 293
