Systemic risks of asean+3 financial integration: challenges, opportunities and the future

There has been rapid de facto trade integration in ASEAN+3 over the past decades, and experts have noted that this leads to greater de facto financial integration. These two therefore have reinforcing effects on each other. However, this cycle brings with it systemic financial risks that could lead to balance of payments crises, capital reversals, and exchange rate variability from current account imbalances which have caused global disruptions historically. The way to keep history from repeating itself is to address these risks. The Chiang Mai Initiative Multilateralization (CMIM) is one way of doing so, by providing an insurance mechanism that can safeguard the trigger points for said crises. However, the development of de jure integration policies such as this has been slow, much slower than policies that further trade integration, posing a systemic risk. This paper clarifies the implications of this; discusses the possible reasons for this discrepancy; and provides potential solutions that will enable ASEAN+3 to speed up the process of prudent financial integration.

• Autores: Oropeza García, Arturo
• Fecha de publicación: 2015
• Institución: Universidad EAFIT
• Repositorio: Repositorio EAFIT
• Idioma: eng
• OAI Identifier: oai:repository.eafit.edu.co:10784/14843
• Acceso en línea: http://hdl.handle.net/10784/14843
• License: Copyright (c) 2015 Chikako IWATA, Jose Ma. Luis MONTESCLAROS, Xiao QI