The rise of emerging markets' financial market architecture: constituting new roles in the global financial goverancen

Martina Metzger and Günther Taube

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses the impact of the global financial crisis on Brazil, India and South Africa whose financial markets have shown strong resilience to the global financial turmoil. The paper shows, that in contrast to advanced countries in these emerging market economies there is contagion from the real sector through a slump in exports and a decline in industrial production. Although exposure to toxic assets has been very low, financial markets of the economies under consideration have come under pressure in the second half of 2008 resulting in steep stock market corrections, and a strong volatility of prices, in particular exchange rates. However, there was no bail-out of financial institutions and in 2009 financial markets of these countries strongly recovered. The paper identifies a combination of a reduction of foreign debt exposure, a macro-prudential approach in supervision and rule-based approach in regulation complemented by a variety of country-specific rules applied by these countries already before the crisis together with non-orthodox monetary and fiscal policy during the crisis as the main features of their success. The paper concludes that this achievement has already changed policy coordination between advanced countries and emerging markets and will continue to do so both in terms of voice and content.

Keywords: emerging markets; financial sector resilience; art of supervision; foreign debt; global financial governance (search for similar items in EconPapers)
JEL-codes: E63 G01 G18 (search for similar items in EconPapers)
Date: 2010-10
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31433/1/MPRA_paper_31433.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31433

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().