Coordinating Regional and Multilateral Financial Institutions

49 Pages Posted: 24 Mar 2011

See all articles by C. Randall Henning

C. Randall Henning

Peter G. Peterson Institute for International Economics

Date Written: March 23, 2011

Abstract

Recent crises and the expansion of international financial arrangements have dramatically elevated the importance of cooperation between regional institutions and the International Monetary Fund (IMF). While the case for coordination between regional and multilateral institutions is generally accepted, however, the need to organize it on an ex ante is not fully appreciated. The relatively successful cooperation among the European Commission, European Central Bank, and IMF on the European debt crisis is not likely to be easily replicated in joint programs for countries in other regions, moreover, and the costs of coordination failure could be very large. Recent innovations at the IMF, on the other hand, present opportunities for cooperation with regional facilities. Henning reviews (1) the case for organizing cooperation on an ex ante basis, (2) the policy and institutional matters that should be coordinated, (3) how East Asian arrangements in particular and the IMF might cooperate, and (4) an Interinstitutional Agenda of general principles, modalities, and institutional recommendations. The G-20, member states, and institutions themselves should address this agenda proactively.

Keywords: Financial crises, IMF, regional financial institutions, regional integration, Chiang Mai Initiative, European debt crisis, international cooperation

JEL Classification: F53, F55, F33, F34, F30

Suggested Citation

Henning, C. Randall, Coordinating Regional and Multilateral Financial Institutions (March 23, 2011). Peterson Institute for International Economics Working Paper No. 11-9, Available at SSRN: https://ssrn.com/abstract=1793242 or http://dx.doi.org/10.2139/ssrn.1793242

C. Randall Henning (Contact Author)

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
219
Abstract Views
1,082
rank
197,347
PlumX Metrics