Table of Contents
Preface v
Acknowledgments vii
I Special Addresses 1
Through the Looking Glass: The Links between Financial Globalization and Systemic Risk John Lipsky 3
The Current Financial Crisis: Will Latin America Be Caught in the Web, Again? Guillermo A. Calvo 11
Remarks on Systemic Risk and the International Lender of Last Resort Frederic S. Mishkin 27
The Crisis of 2007: The Same Old Story, Only the Players Have Changed Michael D. Bordo 39
II Current State of Financial Globalization 51
Financial Globalization and Stability Falko Fecht Hans-Peter Grüner Philipp Hartmann Marco Lo Duca 53
Does Financial Integration Improve Countries' Growth Opportunities? Gianni De Nicolò 85
Financial Globalization in the Asian Region Philip Lowe 97
The Current State of Financial Globalization-Good News, and Bad Gerard Caprio 113
III Globalization and Systemic Risk-Theory 119
Incentive Conflict in Central Bank Responses to Sectoral Turmoil in Financial Hub Countries Edward J. Kane 121
Systemic Risk and Prudential Regulation in the Global Economy Xavier Freixas 145
The Broad Yen Carry Trade Hyun Song Shin Masazumi Hattori 169
Systemic Risk in a Global Context: Comment on Freixas, Hattori and Shin, and Kane Richard J. Herring 191
IV Globalization and Systemic Risk-Nonbank Financial Intermediaries 205
Remarks on Globalization and Systemic Risk: Nonbank Financial Intermediaries Julian Adams 207
Globalization Duality and Nonbank Financial Intermediaries Mohamed A. E-Erian 217
Pension Plans and Systemic Risk Dennis E. Logue 225
V Globalization and Systemic Risk-Banks 231
International Integration, Common Exposure and Systemic Risk in the Banking Sector Nicole Allenspach Pierre Monnin 233
The Systemic Risk Implications of Originate and Distribute Andrew G. Haldane 251
Quantitative Modeling of Systemic Risk in a Globalized Banking System: Methodological Challenges Martin Summer 275
Globalization and Systemic Risk Grant Spencer 291
VI Globalization and Systemic Risk-Capital Markets 297
The Sub-Prime Crisis and Systemic Risk: Evidence from US Securities Markets Leonce Bargeron Kenneth Lehn Mehmet Yalin 299
Systemic Risks in Our Global Marketplace Chester S. Spatt 313
What Can Central Bankers Learn from Hedge Fund Replication Strategies? David A. Hsieh 331
Comments on Session VI: Globalization and Systemic Risk-Capital Markets Liliana Rojas-Suarez 349
VII Crisis Resolution in a Global Context 355
Global Crisis Management John Lane 357
EU Financial-Stability Framework: Analytical Benchmarks for Assessing Its Effectiveness Maréa J. Nieto Garry J. Schinasi 361
Crisis Resolution in a Global Context: Regulation and Supervision for Cross-Border Banking Mattias Persson 379
Crisis Resolution in a Global Context Pascual O 'Dogherty 389
VIII Where to Go from Here-Policy Panel 395
Speaking Points for Where to Go from Here? Policy Panel Jaime Caruana 397
The US Government's Approach to Financial Decisions Kenneth W. Dam 403
Globalization and Systemic Risk: Where to Go from Here-Policy Panel William L. Rutledge 409
Comments on Session VIII: Where to Go from Here-Policy Panel Andrew Sheng 415
Basel II, Regulation and the Sub-Prime "Crisis" Michael W. Taylor 429
International Agenda 437
Index 441