Financial Stability and Growth in Emerging Economies: The Role of the Financial Sector


Financial stability in developing countries depends on, among other things, the robustness of their domestic financial sector, the soundness of their macroeconomic policies, the volatility of international capital flows, and the overall stability of the global financial system. This book analyses these issues in their individual capacity and their mutual relationships, based on rigorous empirical research. 

Policy insights include that: Asia should and will play a much larger role in global financial governance; to achieve stability and growth in emerging economies, more is needed than just a better regulated and supervised domestic financial system; in Argentina and Brazil the recent financial crises cannot be attributed to a poorly regulated banking system as regulation was already stricter than in the United States.

Contributors to the book include development thinkers from ECLAC (José Antonio Ocampo and Rogério Studart), UNCTAD (Heiner Flassbeck), the World Bank (Amar Bhattacharya) and the IMF (Mark Allen), deputy governors of the central banks of Hungary (György Szapáry), Germany (Jürgen Stark) and the Netherlands (Henk Brouwer), widely respected professors of economics: Yung Chul Park, Eisuke Sakakibara, Barbara Stallings, Stephany Griffith-Jones and Charles Wyplosz, and development finance experts from the private sector like banker Frans van Loon (ING).


Contents & Authors

Preface by Nout Wellink

Introduction by Jan Joost Teunissen and Mark Teunissen

Part I: Latin America: How to Achieve Stability and Growth?

1.    Changing Expectations, Capital Surges and the Banking Sector: Argentina, Brazil, Chile and Mexico in the 1990s
Rogério Studart

2.    Comment by Jürgen Stark

3.    Fiscal Discipline in Emerging Market Countries: How to Go about It?
Charles Wyplosz

4.    Comment by Mark Allen

5.    Floor Discussion


Part II: Central and Eastern Europe: The EU Convergence Challenges

6.    Banking Sector Development and Financial Stability in the Run Up to EU Accession
Henk Brouwer, Ralph de Haas and Bas Kiviet

7.    Postscript by Mark Teunissen

8.    Comment by György Szapáry

9.    Sources of Financial Fragility in the EU Candidate Countries
Marek Dabrowski


Part III: Asia: A New Agenda of Financial Reform and Regional Cooperation

10.  Financial Liberalisation and Economic Integration in East Asia 
Yung Chul Park and Kee Hong Bea

11.  Comment by Heiner Flassbeck

12.  Asian Cooperation and the End of Pax Americana
Eisuke Sakakibara

13.  Comment by Amar Bhattacharya

14.  Comment by Barbara Stallings

15.  Floor Discussion

Part IV: The Role for Market Participants and Financial Authorities

16.  Promoting Financial Stability: The Role of Central Banks  Age Bakker

17.  The Lack of Stable Capital Flows to Developing Countries  Stephany Griffith-Jones

18.  Private Sector Views on Financial Stability  Frans van Loon

19.  Fostering Financial Stability: The Role for Ministries of Finance  Wouter Raab



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September 2003
ISBN-10: 90-74208-21-5

304 pages

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