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Questioning the Relevance of Monetary Institution Argument: Financial Globalization and the Need for Micro-Level Framework |
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Abstract:
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In IPE literature of ?monetary institution,? two lines of study are combined: exchange rate regime choice and central bank independence. It is no doubt a huge theoretical advancement, legitimizing the literature?s self-proclamation of the ?second generation? research in the field. By focusing on states? seignorage and inflation, however, the literature concentrates only on macro-economic phenomena, and thus ignores micro-level issues. On the other hand, the currency crises of East Asian countries, whose macroeconomic conditions were fairly solid, clearly showed that the global financial market has begun to respond the soundness of states? financial system, such as the states? ability of bank supervision and informational transparency. In other words, due to economic globalization, now there are more things in the world financial market than dreamed of in the theory of monetary institution.Based on these considerations, this essay conducts three things: first, by way of data analyses, the essay verifies that the macro-centric monetary institution theory fails to keep up with recent changes in the global finance; second, the essay presents a new theoretical framework which incorporates micro-level variables; and, third, by using empirical data, the essay tries to explain when, why and how the new framework has become more relevant than the existing monetary institutional argument. |
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Association:
Name: International Studies Association URL: http://www.isanet.org
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Citation:
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MLA Citation:
| Okamoto, Itaru. "Questioning the Relevance of Monetary Institution Argument: Financial Globalization and the Need for Micro-Level Framework" Paper presented at the annual meeting of the International Studies Association, Town & Country Resort and Convention Center, San Diego, California, USA, Mar 22, 2006 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p98035_index.html> |
APA Citation:
| Okamoto, I. , 2006-03-22 "Questioning the Relevance of Monetary Institution Argument: Financial Globalization and the Need for Micro-Level Framework" Paper presented at the annual meeting of the International Studies Association, Town & Country Resort and Convention Center, San Diego, California, USA <Not Available>. 2009-05-25 from http://www.allacademic.com/meta/p98035_index.html |
Publication Type: Conference Paper/Unpublished Manuscript Abstract: In IPE literature of ?monetary institution,? two lines of study are combined: exchange rate regime choice and central bank independence. It is no doubt a huge theoretical advancement, legitimizing the literature?s self-proclamation of the ?second generation? research in the field. By focusing on states? seignorage and inflation, however, the literature concentrates only on macro-economic phenomena, and thus ignores micro-level issues. On the other hand, the currency crises of East Asian countries, whose macroeconomic conditions were fairly solid, clearly showed that the global financial market has begun to respond the soundness of states? financial system, such as the states? ability of bank supervision and informational transparency. In other words, due to economic globalization, now there are more things in the world financial market than dreamed of in the theory of monetary institution.Based on these considerations, this essay conducts three things: first, by way of data analyses, the essay verifies that the macro-centric monetary institution theory fails to keep up with recent changes in the global finance; second, the essay presents a new theoretical framework which incorporates micro-level variables; and, third, by using empirical data, the essay tries to explain when, why and how the new framework has become more relevant than the existing monetary institutional argument. |
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