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Financial Crises and Globalisation

Published online by Cambridge University Press:  01 January 2023

Stephen Grenville
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Abstract

Drawing on lessons learnt from an analysis of why Australia was not subject to the same degree of contagion from the Asian crisis as were our near neighbours, this paper looks at what elements of reform to the international economic architecture are desirable and why. These include: wider representation in the economic councils of the world, in part to give more legitimacy to the rules of the game; bailing in the private sector both for equity reasons and to reduce moral hazard as well as to contribute to solving the immediate problem; far reaching prudential rules e.g. restrictions on banks’ short term borrowing and on foreign currency denominated borrowing; the possibility of controls on short term capital inflow; and greater transparency with increased disclosure by all major participants including hedge funds.

Type
Symposium on Globalisation
Information
The Economic and Labour Relations Review , Volume 10 , Issue 2 , December 1999 , pp. 260 - 277
Copyright
Copyright © The Author(s) 1999

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Footnotes

*

Deputy Governor, Reserve Bank of Australia. The article was given as a paper at the Reinventing Bretton Woods Committee Conference, Canberra, 15 July 1999.

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