Cover: New Paradigms for Financial Regulation

New Paradigms for Financial Regulation: Emerging Market Perspectives

The global financial crisis has led to a sweeping reevaluation of financial market regulation and macroeconomic policies. Emerging markets need to balance the goals of financial development and broader financial inclusion with the imperative of strengthening macroeconomic and financial stability. The third in a series on emerging markets, New Paradigms for Financial Regulation develops new analytical frameworks and provides policy prescriptions for how the frameworks should be adapted to a world of more free and more volatile capital.

This volume provides an overview of the global regulatory landscape from the perspective of Asian emerging markets. The contributors discuss the many challenges ahead in developing sound and flexible financial regulatory systems for emerging market economies. The challenges are heightened by the rising integration of these economies into global trade and finance, the growing sophistication of their financial systems as globalization and emergence processes accelerate, and their potential vulnerability to instability arising from the financial markets in the advanced economies.

The contributors provide guidance about pitfalls to be avoided, general principles that should guide the creation of sound regulatory systems, and valuable analytic perspectives about how to continue to broaden the financial sector and innovate while still maintaining financial and macroeconomic stability.

Specific topics covered by the volume include:

  • Implications of global regulatory changes for emerging markets, with particular emphasis on Asian emerging markets
  • Effective design of regulatory and policy frameworks to promote financial system development and stability
  • Monetary policy frameworks to enhance financial stability and international policy coordination
  • Principles for a sound global regulatory architecture
This is the third in a series of books edited by Kawai and Prasad—copublished with the Asian Development Bank Institute—on international financial regulation and reform in the wake of global crisis, focusing on emerging markets. The first two books in the series are Asian Perspectives on Financial Sector Reforms and Regulation and Financial Market Regulation and Reforms in Emerging Markets.