Increasingly, transnational corporations, developed countries and private actors are broadening the boundaries of their investments into new territories, in search of a higher return on capital. This growth in direct foreign investment involves serious concerns for both the investor and host state. Various exponents of international civil society and non-governmental organisations persuasively claim that such growth in foreign investments constitutes potential and serious hazards both to the environment and the fundamental rights and freedoms of local populations. This book explores from an international law perspective the complex relationship between foreign investments and common concerns, i.e. values that do not coincide, or do not necessarily coincide, with the interests of the investor and of the host state. It pays particular attention to the role of the main international development banks in reconciling the needs of foreign investors with the protection of common concerns, such as the environment, human rights and labour rights. Among its collection of essays, the volume asks how much "regulatory space" investment law leaves; whether international investment law is an effective means of balancing contrasting interests, and whether investment arbitration currently constitutes a mechanism of global governance. In collecting the outlooks of various experts in human rights, environmental and international economic law, this book breaks new ground in exploring how attention to its legal aspects may help in navigating the relationship between foreign investment and common concerns. In doing so, the book provides valuable insights into the substantive issues and institutional aspects of international investment law.

This book focuses on the interaction between equilibrium real exchange rates, optimal external debt, endogenous optimal growth and current account balances, in a world of uncertainty. The theoretical parts result from interdisciplinary research between economics and applied mathematics. From the economic theory and the mathematics of stochastic optimal control the author derives benchmarks for the optimal debt and equilibrium real exchange rate in an environment where both the return on capital and the real rate of interest are stochastic variables. The theoretically derived equilibrium real exchange rate - the "natural real exchange rate" NATREX - is where the real exchange rate is heading. These benchmarks are applied to answer the following questions. * What is a theoretically based empirical measure of a "misaligned" exchange rate that increases the probability of a significant depreciation or a currency crisis? * What is a theoretically based empirical measure of an "excess" debt that increases the probability of or a debt crisis? * What is the interaction between an excess debt and a misaligned exchange rate? The theory is applied to evaluate the Euro exchange rate, the exchange rates of the transition economies, the sustainability of U.S. current account deficits, and derives warning signals of the Asian crises and debt crises in emerging markets.

This book considers foreign investment flows in major Asian economies. It critically assesses the patterns and issues involved in the substantive law and policy environment which impact on investment flows, as well as the related dispute resolution law and practice. The book combines insights from international law and comparative study and is attentive to the socio-economic contexts and competing theories of the role of law in Asia. Contributions come from both academics with considerable practical expertise and legal practitioners with strong academic backgrounds. The chapters analyze the law and practice of investment treaties and FDI regimes in Asia looking specifically at developments in Japan, India, China, Indonesia, Malaysia, Korea and Vietnam. The book explores the impact of the Asian Financial Crisis in the late 1990s and the Global Financial Crisis a decade later, examining actual trends and policy debates relating to FDI and capital flows in Asia before and after those upheavals. Foreign Investment and Dispute Resolution: Law and Practice in Asia is a valuable resource for practitioners, academics and students of International and Comparative Law, Business and Finance Law, Business, Finance and Asian Studies.

This volume presents carefully selected research by reputed scholars on diverse topics dealing with the economic life of Muslims. The book provides a perspective not only on key aspects of the moral economy but also on the behaviour and expectations of economic agents. The distinguished editors have made a valuable contribution by expanding the scope of typical Islamic economics literature and by including topics dealing with the day-to-day life of Muslim society.' - Zamir Iqbal, The World Bank Global Center for Islamic Finance DevelopmentAccording to the most recent Pew Forum on Religion and Public Life, nearly one in four people in the world are Muslim. In light of these numbers, Handbook on Islam and Economic Life is one of the first books to consider Islam within a broader economic sphere by focusing on the ways in which Islam shapes and interacts with the economy. With contributions from leading scholars, this unique Handbook explores how Islam impinges upon and seeks to condition major aspects of economic life including economic organization, business and management, finance and investment, charity, mutuality and self-help, and government. It concludes by analyzing the link between religion and development, the present economic circumstances in Arab countries and the vexed issue of the origins and causes of underdevelopment in Muslim countries. Covering a breadth of topics and research, this book will be essential reading for academics in both Muslim and western universities, graduates and postgraduates of Islamic studies as well as Islamic and other research institutes. Contributors include: B.A. Al-Foul, A.A. Adeyemi, H. Ahmed, T.A. Alias, M. Ariff, M. Chaudry, M. Cizakca, H. Furqani, I.H. Genc, R. Haniffa, M.K. Hassan, M. Hudaib, Z. Iqbal, A.A. Islahi, A.G. Ismail, A.A. Jobst, M. Kahf, M. Khan, S. Kostyshak, M.A. Laldin, M.K. Lewis, N.A. Muhamed, G. Naufal, V. Nienhaus, U.A. Oseni, B.T. Possumah, J.E. Rauch C.E. Regenstein, J.M. Regenstein, M.N. Riaz, J. Rubin, M. Safari, M.N. Siddiqi, S.A. Siddiqui, A. Subhani, R. Wilson, O. Yousfi, A. Zaman

The crisis of the current global financial speculative order is challenging us to critically reflect about the way this order has been driven and the development outcomes produced by its central political and economic actors.This book offers one of the few, independent and grounded investigation concerning the political economic role of the Regional Development Banks (RDBs) via an investigation of the world leading regional development bank, the Inter-American Development Bank. The book examines the impact on development of what we call the power-balance legitimisation. That is, the RDB's development capacity - via its technical, political and financial interventions - to frame policy alternatives, absorb opposition forces and justify a particular direction of development, all in order to legitimizes a specific political economic projects led by market-led pro-reform coalitions aligned with global financial forces and financial guidelines of development Applying a version of the new International Political Economy (new IPE) approach, Vivares traces the dynamics of the Latin American political economy of financing development, situating the IDB's development mission and role within the framework of globalisation, regionalism and multilateralism. This book examines the structural forces shaping the nature of the IDB and its role in the region throughout the period of the internationalisation of production and globalisation of development financing. In so doing, it draws particular attention to the IDB's changing development mandate and its interventions in the region in relation to its hemispheric, regional and global commitments, revealing the dynamics of its technical, financial and political capabilities.

The role of business in global governance is now widely recognized, but exploration of its role in global financial governance has been more haphazard than systematic. This book provides the first comprehensive analysis of the role of transnational financial associations (TFAs) in the organization of global finance. This book develops three theoretical themes of assemblage, functionality, and power as enrolment. These themes challenge approaches that treat financial power as emanating from a single location or force. Whilst existing approaches tend to treat TFAs as irrelevant or as merely transmitting power originating elsewhere, this book argues that power must be created by painstakingly assembling actors, networks, and objects that are often quite autonomous and working at cross purposes to one another-a process in which TFAs play a central role. The book explores these themes in chapters examining the roles of TFAs in interacting with public authorities, constructing global financial markets, and creating financial communities. The authors additionally analyse the roles of TFAs in the European Union, in the Global South, and in promoting goals other than profitability, including Islamic finance, microfinancing, savings banks and cooperatives. Making a distinctive contribution to our understanding of global finance and global governance, Transnational Financial Associations and the Governance of Global Finance is an important book for students and scholars of international political economy, finance, global governance and international relations.

Until recently the world has been relying on the US dollar and the Euro to lubricate the flow of global trade and finance. A newcomer, the Renminbi (RMB) or Chinese Yuan, joined the global monetary system in 2000. The rise of the RMB is both an indicator and a result of the evolution in the global macro landscape that shifts economic weight from the developed markets, led by Europe, Japan and the US, to the emerging markets, led by China.Research on RMB internationalisation is difficult because events have been unfolding fast, with frequent shifting regulations. Most financial market research is sales-driven, shallow and without serious investigation into the structural underpinning of events. Most crucially, there has been insufficient systematic research on the structural realities behind the RMB internationalisation exercise. No-one has openly questioned the credibility of the RMB as an international currency. This is the first book to address these issues by focusing on the structural factors behind the rise of the RMB. It uses a critical approach, questioning conventional wisdom and the status quo to anslyse China's currency ambition in the post-subprime world. Discussions combine rigorous research thoughts, data, facts and economic logic with real world issues to elaborate on the arguments and make them reader-friendly.

The editors of this work have selected the most important papers on the subject of international capital markets to make an authoritative collection. Volume I considers theories of international portfolio choice and asset pricing, and also looks at empirical evidence on international asset pricing models. Volume II covers international portfolio diversification, as well as interest and exchange rates. Volume III includes articles on theories of barriers to international investments; empirical evidence on impact barriers to international investments; international capital flows; and anomalies in international capital markets. The book is designed to be an valuable source of reference for researchers and students alike.

This book analyzes the European Great Recession of 2008-12, its economic and social causes, its historical roots, and the policies adopted by the European Union to find a way out of it. It contains explicit debates with several economists and analysts on some of the most controversial questions about the causes of the crisis and the policies applied by the European Union. It presents the cases of Iceland, Greece and Ireland, the countries that first declined into crisis in Europe, each of them in a different way. Iceland is a case study for reckless banking practices, Greece of reckless public spending, and Ireland of reckless household indebtedness. At least seven other countries, mostly from the peripheries of Europe, had similarly reckless banking and spending practices. In the center of the book are the economic and social causes of the crisis. Contemporary advanced capitalism became financialized, de-industrialized and globalized and got rid of the "straitjacket" of regulations. Solid banking was replaced by high-risk, "casino-type" activity. The European common currency also had a structural problem - monetary unification without a federal state and fiscal unification. The other side of the same coin is European hyper-consumerism. A new lifestyle emerged during two super-prosperous periods in the 1950s to 1960s, and during the 1990s to 2006. Trying to find an exit policy, the European Union turned to strict austerity measures to curb the budget deficit and indebtedness. This book critically analyzes the debate around austerity policy. The creation of important supra-national institutions, and of a financial supervisory authority and stability mechanisms, strengthens integration. The correction of the euro's structural mistake by creating a quasi-fiscal unification is even more important. The introduction of mandatory fiscal rules and their supervision promises a long-term solution for a well-functioning common currency. These measures, meanwhile, create a two-tier European Union with a fast-track core. This book suggests that the European Union will emerge stronger from the crisis. This book will be of particular interest to students and researchers of economics, history, political science and international finance, but will also prove profitable reading for practitioners and the interested public.

Microfinance is defined as the financial services offered to the poor for the purpose of promoting small-scale enterprises, and as such it is one of the most important topics in development studies and a burgeoning area in economics.

This volume provides a much-needed historical, political and economic dimension to the current knowledge on microfinance. Collectively, the contributors chart the relationship between the prevailing popularity of microfinance and the consolidation of neoliberal economic ideology worldwide. They demonstrate how microfinance, as a market-friendly approach to development, coincides with the global trend towards diminishing the role of the state in economic development, basic healthcare, education and welfare. The articles in the volume focus on the empirical analyses of the experience of microfinance in women s everyday lives, but rejects the connection between microfinance and women s empowerment so often imputed in literature.

This book offers regional, cultural and other explanations for variable assessments of microfinance and empowerment. It fills a huge gap in published microfinance literature and will be of great interest to postgraduates and professionals in the fields of economics, international finance and banking.

The whirlwind of financial globalization has descended upon emerging market economies and rapid change has brought both benefits and problems upon a dynamic group of nations. This book examines the impact of ever increasing financial globalization on emerging market economies, both in the former communist countries of Eastern Europe and the developing world in general. This impressive volume covers themes and issues such as: *global capital flows and financial liberalization *global financial architecture *financial and macroeconomic instability Financial Globalization and the Emerging Market Economies will be of interest to students and academics in many areas including international economics, international finance and international political economy. It will also provide a useful source of information for those who work in the financial industry at large.

Financial crises have dogged the international monetary system over recent years. They have impoverished millions of people around the world, especially within developing countries. And they have called into question the very process of globalisation. Yet there remains no intellectual consensus on how best to avert such crises - much less resolve them. Policymakers stand at a crossroads. This volume summarises and evaluates these issues, drawing on contributions by prominent international experts in the field. It considers whether the IMF may have actually fanned the flames of future crises through its lending decisions. It assesses the contribution made by private creditors in resolving past crises - and asks what mechanisms might best be used to involve private creditors in the future. It also assesses the merits of two recent competing blueprints for architectural reform - the so-called contractual and statutory approaches to crisis resolution. These issues will shape the debate on the future of the international monetary system over the next decade and, probably, beyond. For although crises may always be with us, better public policy can surely help mitigate their future cost and incidence. With an impressive array of internationally based contributors, this book will deserve a place on the bookshelves of economists and policy-makers in both the official and private sectors.

The discourse on globalization has become polarized. Proponents consider globalization as the silver bullet for targeting growth in the world economy and for poor countries specifically, while opponents see it as the poisoned arrow of exploitation and impoverishment of the Third World. Splendidly edited, The Asymmetries of Globalization deals with the 'what' and 'how' but primarily with 'why' globalization has most often negative outcomes for developing countries. It breaks new ground in approaching globalization not only as trade commodities, but also as trade in positional goods ('decommodified trade.') The two novel and munificent forms of post-Ricardian decommodified trade, trade in services and trade in hard currency in the form of currency substitution, are sculpted in the introductory chapter as the foundation of the systematic asymmetries of globalization. The analytical approach of introducing 'positional goods' in the form of decommodified trade, in the discource on globalization, is original. It is also timely in a situation where the tail of trade in 'services' has grown enough to wag the traditional trade-in-commodities dog of globalization. The balance of the chapters in this volume constitute a tapestry of case studies that elaborate and empirically investigate the causes of systematic asymmetries of globalization. The book's appeal transcends economics to make it also highly useful to students across the disciplines of sociology and political science, especially in the fields of international political economy and the politics of international trade. It will certainly enlighten all those working in the general areas of globalization, poverty and economic development.

This book analyzes the European Great Recession of 2008-12, its economic and social causes, its historical roots, and the policies adopted by the European Union to find a way out of it. It contains explicit debates with several economists and analysts on some of the most controversial questions about the causes of the crisis and the policies applied by the European Union. It presents the cases of Iceland, Greece and Ireland, the countries that first declined into crisis in Europe, each of them in a different way. Iceland is a case study for reckless banking practices, Greece of reckless public spending, and Ireland of reckless household indebtedness. At least seven other countries, mostly from the peripheries of Europe, had similarly reckless banking and spending practices. In the center of the book are the economic and social causes of the crisis. Contemporary advanced capitalism became financialized, de-industrialized and globalized and got rid of the "straitjacket" of regulations. Solid banking was replaced by high-risk, "casino-type" activity. The European common currency also had a structural problem - monetary unification without a federal state and fiscal unification. The other side of the same coin is European hyper-consumerism. A new lifestyle emerged during two super-prosperous periods in the 1950s to 1960s, and during the 1990s to 2006. Trying to find an exit policy, the European Union turned to strict austerity measures to curb the budget deficit and indebtedness. This book critically analyzes the debate around austerity policy. The creation of important supra-national institutions, and of a financial supervisory authority and stability mechanisms, strengthens integration. The correction of the euro's structural mistake by creating a quasi-fiscal unification is even more important. The introduction of mandatory fiscal rules and their supervision promises a long-term solution for a well-functioning common currency. These measures, meanwhile, create a two-tier European Union with a fast-track core. This book suggests that the European Union will emerge stronger from the crisis. This book will be of particular interest to students and researchers of economics, history, political science and international finance, but will also prove profitable reading for practitioners and the interested public.

The countries of Central and Eastern Europe have been through a profound transition process for more than a decade now. The financial sectors and markets in the region have been subject to major structural reforms including privatization, liberalization and the acquisition by foreign banks of controlling interests in local financial institutions. This important new book includes papers that chart this process. Topics discussed include the implications of future EU membership, and the strategies pursued by the World Bank and International Monetary Fund.

This book, first published in 1983, and written by a respected leading authority, presents the essentials of international economics in a simple and straightforward way. The book contains the minimum of algebra and avoids detailed proofs. It incorporates the most recent contemporary theoretical advances and discusses contemporary issues in commercial policy. Moreover, it puts less emphasis than other textbooks on trade theory and more on balance of payments theory and on questions of international finance and international monetarism.

Combining thorough scholarship with illuminating real-world examples, this edited collection provides insights on the causes and consequences of movements in both exchange rates and external assets and has a strong focus on the policy implications of operating in an open economy, particularly the choice of exchange rate and monetary policy, exchange rate intervention and policies on capital mobility.

The last two decades have seen a number of important developments in exchange rate economics, with substantial contributions to both its theory and empirics. While our understanding of exchange rates has significantly improved, a number of challenges and open questions in the exchange rate debate still remain. In these two volumes, the editors have brought together a selection of key articles which are representative of recent developments in the exchange rate economics literature. This important collection is essential for academic economists and practitioners interested in understanding and participating in the exchange rate debate.

In Discipline in the Global Economy, Jakob Vestergaard investigates the currently prevailing regulation of international finance, launched in response to the financial crises of the 1990's. At the core of this approach is a set of standards of 'best practice', ranging from banking supervision to corporate governance. Vestergaard argues that although these standards are presented as 'international', they comprise a norm for the 'proper' organization and regulation of economies which is intimately related to the Anglo-American model of capitalism. With this approach to the regulation of international finance, previous deregulation policies were replaced by a comprehensive system for the global disciplining of economies. This is a remarkable, if not paradoxical, occurrence in what is allegedly the heyday of neoliberalism and 'free market economy'. Moreover, this mode of international financial regulation has proved ineffective, if not counter-productive, in terms of its objective to enhance the stability and resilience of the international financial system. Only by abandoning 'laissez-fairy tales' about liberalism may we begin to understand our present predicament- and open a space for critical thinking on modes of international economic governance that are at the same time more conducive to financial stability and more in line with the ethos of liberalism.

This book is a collection of papers presented in the conference held at the Federal Reserve Bank of Chicago in September 2010, that examines the role of macroprudential regulation in the financial industry. Shocked by the experience of the last few years, many argue that the more traditional microprudential regulatory tools are inadequate to create a safe and stable financial system. The microprudential paradigm relies on the presumption that the financial system as a whole can be made safe by ensuring individual financial institutions are made safe. This ignores interconnections and externalities, whereby the actions of one financial institution or events in financial markets can lead to spillover effects that adversely affect general market conditions, other financial institutions, and ultimately the economy as a whole. Instead, it is argued, there is a need for both microprudential approaches to regulate individual institutions and macroprudential approaches to manage the overall financial system risks.Conference participants discussed macroprudential regulation and related issues, including: What are the theoretical motivations for macroprudential regulation? How would it interact with other regulatory and macroeconomic policies, especially monetary policy? What would be the specific macroprudential tools? Who should have control over the macroprudential tools? How should a macroprudential regulator be structured? Where should it be housed? How can macroprudential policies be structured across national borders? What role, if any, can market discipline play in supporting macroprudential objectives?Concentrating on public policy issues, the conference featured keynote addresses by influential past and present public policy figures including: Paul Volcker, Chairman of the US President's Economic Recovery Advisory Board and former Chairman of the Federal Reserve System; Tommaso Padoa-Schioppa, Chairman, Promontory Financial Group Europe and Former Chairman of the Basel Committee on Banking Supervision; Jaime Caruana, General Manager of the Bank for International Settlements and Former Chairman of the Basel Committee on Banking Supervision; and Charles Taylor, Director of the Pew Charitable Trust Financial Reform Project and Former Executive Director of the Group of Thirty.

The world of finance has been revolutionized in the last twenty years by factors such as the liberalization and subsequent integration of global financial markets and the advances in computing and communications technology. These important changes have led to a stream of financial innovations and theoretical breakthroughs in the area of pricing diverse financial instruments. More than ever before, we witness a process where international securities are traded in a global marketplace.This comprehensive collection encompasses the most recent contributions in the area of international securities. It includes the most important articles on current issues and future development in this key area of international finance. It will be an essential source of reference to researchers, students and practitioners alike.

This book considers foreign investment flows in major Asian economies. It critically assesses the patterns and issues involved in the substantive law and policy environment which impact on investment flows, as well as the related dispute resolution law and practice. The book combines insights from international law and comparative study and is attentive to the socio-economic contexts and competing theories of the role of law in Asia. Contributions come from both academics with considerable practical expertise and legal practitioners with strong academic backgrounds. The chapters analyze the law and practice of investment treaties and FDI regimes in Asia looking specifically at developments in Japan, India, China, Indonesia, Malaysia, Korea and Vietnam. The book explores the impact of the Asian Financial Crisis in the late 1990s and the Global Financial Crisis a decade later, examining actual trends and policy debates relating to FDI and capital flows in Asia before and after those upheavals.

Foreign Investment and Dispute Resolution: Law and Practice in Asia is a valuable resource for practitioners, academics and students of International and Comparative Law, Business and Finance Law, Business, Finance and Asian Studies.

The recent financial crisis has stimulated much debate on the governance of financial institutions, as well as research on the effects of governance arrangements on risk-taking, performance and financial institutions more generally. Furthermore, researchers are asking how regulation, legislation, politics and other factors influence the governance of financial institutions and their behavior in different dimensions. The specially commissioned contributions featured in this timely Handbook confront these complex issues. The contributors - top international scholars from finance, law and business - explore the role of governance, both internal and external, in explaining risk-taking and other aspects of the behavior of financial institutions. Additionally, they discuss market and policy features affecting objectives and quality of governance. The chapters provide in-depth analysis of factors such as: ownership, efficiency and stability; market discipline; compensation and performance; social responsibility; and governance in non-bank financial institutions. Only through this kind of rigorous examination can one hope to implement the financial reforms necessary and sufficient to reduce the likelihood and severity of future crises. Bringing the reader to the frontier of research on governance of financial institutions, this volume is sure to inspire future research in scholars and students of financial institutions, governance and banking. Practitioners in financial institutions and public regulatory and supervisory authorities will also find much of value and insight in this book. Contributors: E. Arbak, F. Arnaboldi, R. Ayadi, J.R. Barth, T. Berglund, A.W.A. Boot, D. Brash, B. Casu, Y. Chang, H. Choe, W.P. De Groen, J.K. Dietrich, W. Dolde, R. Galema, S. Gangopadhyay, C. Girardone, P.A. Gompers, Y. Gong, C.A.E. Goodhart, B.E. Gup, J. Hagendorff, I. Hasan, R.J. Herring, A.G.F. Hoepner, J. Houston, J. Itzkowitz, J.D. Knopf, S. Koibuchi, R.M. Lastra, B. Lee, R. Lensink, L. Li, C. Lin, Y. Ma, P. MacKay, M. Marinc, D.G. Mayes, R. Mersland, R. Mohan, P. Molyneux, A. Mullineux, A. Naranjo, A.A. Palvia, A.P. Prabha, H.L. Root, W. Sawangngoenyuang, S.K. Shanthi, C.-H. Shen, F.M. Song, L. Song, K.R. Spong, T. Subhanij, R.J. Sullivan, F. Vallascas, P.J. Wallison, I. Walter, L.J. White, C. Wihlborg, T.D. Willett, J.O.S. Wilson, Y. Xuan, Z. Zhou

In the world's developing countries, foreign investment in natural resources brings into contact competing interests that are often characterised by unequal balances of negotiating power - from multinational corporations and host governments, through to the local people affected by the influx of foreign investment. The growing integration of the world economy has been accompanied by rapid and extensive developments in the national and international norms that regulate investment and its impact - including investment law, natural resource law and human rights law. These legal developments affect the 'shadow' that the law casts over the multiple negotiations that characterise international investment projects in the developing world. Drawing on international law, the national law of selected jurisdictions and the contracts concluded in a large investment project, Human Rights, Natural Resource and Investment Law in a Globalised World explores the ways in which the law protects the varied property rights that are at play in foreign investment projects in developing countries, with a focus on Africa. Through an integrated analysis of seemingly disparate fields of law, this book sheds new light on how the law mediates the competing interests that come into contact as a result of economic globalisation, whilst also providing new insights on the changing nature of state sovereignty and on the relationship between law and power in a globalised world. This book will be of interest to scholars, students and informed practitioners working in the fields of international investment and human rights law, comparative law, socio-legal studies, and development studies.

German unification evoked ambivalent reactions outside its borders: it revived disquietingmemories of attempts by German big business during the two world wars to build an economic empire in Europe in conjunction with the military and the government bureaucracy. But thereare also high hopes that German finance and industry will serve as the engine of reconstruction in eastern Europe, just as it played this role in the postwar unification of western Europe.