(OCC42) Use and Substitution of Cash and Electronic Payments in Asia by Tanai Khiaonarong and David Humphrey
The substitution of electronic payments for paper-based non-cash transactions and the share of cash in the value of consumption are investigated for Hong Kong Japan Korea Singapore Taiwan and Thailand over 1995-2003. Five and ten-year logistic curve projections for electronic and cash payment shares are presented. While electronic payments are generally cheaper than paper-based non-cash…
(OCC 53) Central Bank Governance and Challenges Posed By the Crisis by Y.V. Reddy
In the first section of this paper it will be explained that though generalizations are misleading some of the central banks especially among the advanced and systemically important economies may have to take some though not entire responsibility for causing the global financial crisis. The second section elaborates that central banks have acquitted themselves well…
(OCC49) Marrying Monetary Policy with Macroprudential Regulation: Exploration of Issues by Don Nakornthab and Phurichai Rungcharoenkitkul
Since the eruption of the global financial crisis in 2008, macroprudential regulation has become a mantra in the regulatory world. The soon-to-be-widespread adoption of macroprudential tools will inevitably affect the dynamics of the economy and consequently have a direct bearing on the conduct of monetary policy. This paper explores theoretically several issues surrounding the interplay…
(OCC 54) How Should We Bank With Foreigners An Empirical Assessment of Lending Behaviour of International Banks to Six East Asian Economies by Victor Pontines and Reza Y. Siregar
The possible crucial role of international bank lending in the transmission of adverse economic disturbance from advanced economies to emerging economies in the recent global financial crisis has once again placed this type of capital flows into sharper scrutiny both in academic and policy discussions. We construct macro-and micro-panel data on international bank lending to…
(OCC 55) China’s Twelth Five-Year Plan and its Implications to ASEAN Economies by Somsak Tambunlertchai and Aksornri Phanishsarn
One of the reasons why some ASEAN countries are watchful of China is the sheer size of its economy compared to theirs. The rise of China poses some concern to them. However, the ASEAN economies are resilient—they have successfully competed with various other developing regions, and have survived a number of economic crises in the…
(OCC 56) Financial Contagion and Volatile Capital Flows by Gan-Ochir Doojav, Borkhuu Gotovsuren and Tsenddorj Dorjpurev
Liberalized capital accounts and financial integration can enrich a country’s welfare as long as they are appropriately coordinated with the adequate strengthening of policy frameworks. Otherwise, volatile capital flows and financial contagion, promulgated by capital account liberalization and financial integration may lead to domestic macroeconomic and financial challenges via the transmission of international shocks into…