Asian Financial Markets

Instructors

KAWAI Masahiro

Term / Language / Credits

A1A2 / English / 2

Objectives

This course will provide an overview of the structure, development and challenges of financial markets in Asia, including ASEAN member countries, China, Japan, Korea, India and other emerging and developing economies in the region. Its primary focus is how policymakers can achieve the right balance between financial development (through liberalization, innovation and inclusion) and financial stability (through macroeconomic management, financial regulation and supervision, and international financial safety nets).

Japanese and emerging Asian financial markets went through fundamental changes in the 1990s. The Japanese banking crisis and the Asian financial crisis of 1997-98 were instrumental in inducing such changes. The global financial crisis of 2007-09 again affected Asian markets and has offered several lessons to be learned globally, including in Asia which has been increasingly integrated as a region financially. Open-economy financial policy would require significant attention to be paid to the trilemma hypothesis in international finance.

At the end of the course, students are expected to understand the key drivers of Asian financial market development and deepening in the past 30 years and be familiar with a range of ongoing policy debates to influence financial development and stability in the region.

Students are expected to attend all lectures, participate actively in class discussions, produce a lecture note for the session of the student’s choice, write a term paper on any of the lecture topics or related issues, and present the term paper.

Keywords

Financial deepening and economic development, Asian financial crisis, IMF intevention, banking crisis and Japanization, Asian local-currency bond market, financing for development, finacial integration, central banking, currency internationalization, trilemma in international finance, exchange rate arrangement, monetary policy independence, financial stability regulation, international monetary system reform

Schedule

A detailed class schedule will be provided at the beginning of the lecture series.

Teaching Methods

Lecture, class discussion

Grading

Each student will be assessed as follows:
 20% - class attendance and contribution to class discussion
 20% - production of a lecture note
 40% - written term paper (individual)
 20% - term paper presentation with powerpoint

Required Textbook

No particular textbook will be used.

Reference Books

Ronald I. McKinnon. 1991. The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy. Baltimore: Johns Hopkins University Press.
Masahiro Kawai and Mario Lamberte, eds. 2010. Managing Capital Flows: The Search for a Framework. UK: Edward Elgar.
Masahiro Kawai, Peter Morgan and Shinji Takagi, eds. 2012. Monetary and Currency Policy Management in Asia. Cheltenham, UK: Edward Elgar.
Masahiro Kawai, David G. Mayes, and Peter J. Morgan, eds. 2012. Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia. Cheltenham and Northampton: Edward Elgar.
Masahiro Kawai and Andrew Sheng, eds. 2012. Capital Market Reform in Asia: Towards Developed and Integrated Markets in Times of Change. New Delhi: Sage.
Masahiro Kawai, Mario Lamberte, and Peter Morgan, eds. 2014. Reform of the International Monetary System: An Asian Perspective. Tokyo, Heidelberg, New York, Dordrecht, London: Springer.
Barry Eichengreen and Masahiro Kawai, eds. 2015. Renminbi Internationalization: Achievements, Prospects, and Challenges, Brookings Institution.

Miscellaneous Information

http://www.pp.u-tokyo.ac.jp/courses/2015/documents/5123300-20150303.pdf

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