Asia Pacific Economic Forum), Asia Pacific Economic Forum (APEC), 21,26 21,26 Argentina
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Index A Agroprombank, 213 Argentine Congress to the Central Bank Anchor currency, 51 Charter Act (CBCA), 185 Euro as, 52 Articles of Termination mark as, 41, 43, 50 (Czechoslovakia),234 APEC (Asia Pacific Economic Forum), Asia Pacific Economic Forum (APEC), 21,26 21,26 Argentina. see also Argentine banking Association of South East Asian Nations panic (1994-1995) (ASEAN),21 fmancial history of, 183-184 Asymmetric information theory, 150- foreign reserves/monetary liabilities, 156 192 adverse selection, 150 Argentine banking panic (1994-1995), application of, 156-172 183-207,337. see also factors leading to crisis, 151-156 Convertibility Plan (Argentina) financial crisis defined, 151 banks, nominal capital asset ratios for, moral hazard, 151 202 Austria, 33, 42, 96 developments leading to (1994), 184, Azores conference (1972), 96 192-206 failing/merging banks, characteristics of, 203-206 B interaction between policy response/shock, 19 I Bahrain, 124 international interest rate evolution, Baker, James, 14 192-200 Balance sheets minimum capital regulations/new asset market effects on, 152-155 provisioning rules, 200-203 in bank panics, 155-156 Argentine Brady Bonds, 192-193 in Mexican peso crisis, 158, 159, 166 retail bank (Argentina), 196 344 INDEX wholesale bank (Argentina), 195 Basle Capital Adequacy Accord (1988), Baldwin, Robert, 281 103,219,341 Banca d'Italia, 263 Basle Committee for Banks Regulation, Banco de Mexico, 161, 166,312 188 Bank for International Settlements (BIS), Basle Committee of Banking 15 Supervisors, 218 Annual report (1995), 341 Basle-Nyborg Agreement (1987), 45, 64 in Mexico, 3 13 Belgium, 96 in Russia, 218 in EMS, 118 Banking system (Russia), 339. see also financial equilibrium of, 264, 276, Central Bank of Russia (CBR) 277--278 banks in, 213--214,223--224 Belveshkaya Accord, 211 credit organizations, 214, 224 Benin, 127, 129--130 foreign banks in, 215--216 BIS. See Bank for International history of, 213--214, 215--217 Settlements (BIS) importance of, 212 Black Tuesday, 216 loans by, 212 Bonn summit (1978), 15 Bank ofItaly Brady Bonds, Argentine, 192--193 Annual Report (1979), 61 Brady plan (1989), 310 in 1992 crisis, 63, 64, 67 Bretton Woods System Economic Bulletins, 69, 75 demise of, 12--13 foreign exchange interventions, 65, 75 EMS compared, 43 monetarypolicyof(1992), 70, 72, 73, lessons learned from, 115, 116--118 74 policies of, 12, 115 Bank ofJapan, 105 Brittan, Leon, 25 Bank of Russia. see Central Bank of Budapest Stock Exchange, 243--244 Russia (CBR) Bundesbank Bank of the Central African states, 128 Annual Report (1990), 47--48 Bank panics, 155--156, 189. see also as Europe's central bank, 35--36 Argentine banking panic monetary policy of, 43, 44, 48--49, (1994-1995) 56--57, 131 Banks. see also specific banks role in EMS, 41, 42, 132 balance sheets of, 155--156, 159, role in EU, 33 166,195--196 Burkina Faso, 127, 130 cooperative/commercial joint-stock, 213 in emerging market countries, 156 c historical failures, 10--11 retail, 194, 196, 198, 202, 203--206 CAEMC (Central African Economic and spets, 213 Monetary Community), 127 supervisory systems for, 174--175, Camdessus, Michel, 20, 218, 323 221--222,224--225 Cameroon, 127, 130 wholesale, 194, 195, 197,202,206 Capital Banque de France, 99 convertibility, 317--319 Bardi, House of, 10 flows of, 23, 340 FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 345 mobility, 117, 131 CFA Franc zone (CFA), 127-131, 132 regulations, 184 benefits of membership, 128-129 Capital flow discrimination, 23 economic indicators, 129, 142 CBK. see Central Bank of Kuwait (CBK) exchange rate policies in, 116, 128 CBR. see Central Bank of Russia (CBR) intra-CFA zone trade, 130, 141 Central African Economic and Monetary members of, 127 Community (CAEMC), 127 recent performance of, 144 Central African Republic, 127 terms of trade/real effective exchange Central Bank of Argentina, 183-184, rate, 143 185, 186 Chili, 154 Central Bank of Kuwait (CBK), 282 Chubais, Anatoli, 217 bankinglfmancial sector revival, Ciampi, Governor Carlo Azeglio, 63, 72 286-291 Clearing Agreement (Czech bank support during occupation, 284 Republic/Slovak Republic), 238 Difficult Credit Facilities Settlement Clinton, President Bill, 26 Program, 290 CMEA trade, 230, 311 post-liberation preparation, 284-285 Collateral, 152-153, 176 preinvasion adjustments, 283 Comision Nacional Bancaria, 158-159 reorganization of banks during Committee of Governors (EMS), 59, 98 occupation, 283-284 Comoros, 127, 128 Central Bank of Russia (CBR), 212, 213 Compensatory and Contingency Conceptual Framework for the Financing Facility (lMF), 310 Stabilization and Improvement Competitive devaluations, 102 of the Reliability of the Banking Convertibility Plan (Argentina), 183- System, 223, 224 184 as lender-of-the-last resort, 225 additional regulations, 189-191 regulatory powers of, 214-215 banking regulations under, 185-191 supervisory plan (1996), 219-222, capital regulations, 184, 188-189, 224-225 200-203 Central Bank of the West African states, deposit insurance removal, 184, 128 185-186 Central banks. see also specific banks liquidity regulations, 184, 186-188 as bank regulators/supervisors, 175, success of, 185,206 221-222,224-225 and U.S. interest rates, 193 in emerging market countries, 179, Corporatism, 36-37 341 Corrigan, E. Gerald, 295 in European System of Central Banks, Cote d'Ivoire, 127, 130 51 Credit, excessive, 9 fixed exchange rate problems for, 42 Crises. see Financial crises G-7 country, 15, 18-19 Currencies, 21. see also specific jawboning by, 15-17 currencies as lenders-of-the-last resort, 173 basket, 118 reserves of. see Reserves foreign, in debt contracts, 177 ruling by fiat, 15, 17 replacing, 284, 286 sources of influence, 17 separation of, 233-238 346 INDEX single. see Single currency De Silguy, European Commissioner for trade weighted basket, 124 Monetary Affairs, 34 Czech National Bank (CNB), 236, 237- d'Estaing, Valerie Giscard, 32,41,97 238 Devaluations, 154-155, 166, 170 Czechoslovakia, 241 Dinar (Kuwait), 284, 286, 288-289 economic transformation of, 227- Dispute settlement understanding (DSU) 232 mechanisms, 23 state/currency separation of, 232- Dollar crisis (1985), 14 238 Dollar deposits, 12-13, 194, 199,201 Czechoslovak Koruna (CSK) Dollar (Hong Kong), 31 devaluation of, 229, 230, 231 Dollar shocks, 55, 82-86 exchange rates, official and parallel, Dollar (US), 40 231 currencies pegged to, 31, 116, 124 Czechoslovak State Bank, 228, 230, 235 effective exchange rates (1990-1992), Czech Republic, 232-238, 337 65 foreign exchange reserves, 237 fmancial effective exchange rates of, government budget, balance of, 235 83,84 Slovak Republic economy compared, GCC currencies per, 140 233 gold-exchange standard for, 12 CZK (Czech Republic), 238 lira, influence on, 82-86 trade-weighted effective exchange rate (1990-1992), 83 D as world currency, 12,97, 104 Dubinin, Sergei, 217, 222, 223-225 Danish referendum, Maastricht Treaty, 49,56,64,99 Debt, public. see Public debt crises E Debt contracts, 154,212 currency denomination of, 177 ECB. see European Central Bank (ECB) duration of, 178 Economic and Monetary Union (EMU), non-performing bank loans, 159 56, 336. see also Debt markets, 153-154 European Union (EU) Declaration of the Interim Committee developmental scenarios for, 108- (lMF), 327, 330, 332, 109, 111-112 333 exchange policy of, 103-104 Deflation, 14 international monetary system reform, de Gaulle, General Charles, 97 104-105 Delors, Jacques, 44 relationship with nonmember Denmark, 33, 49, 118 countries, 102-103 Deposit insurance single currency in, 100--102 in Argentina, 183, 185-186 Switzerland, effect on, 109, 113 in Russia, 221, 224 Economic growth, 17 Depositors, protection of, 190 ECU, 41,42, 118, 131 Depressions, world, 10--11 EEC. see European Economic Deregulation, 175-176 Community (EEC) FINANCIAL CRISIS MANAGEMENT IN REGIONAL BLOCS 347 Emergency Financing Mechanism (lMF), (1961-1994), 136 315,328 labor costs, nominal unit (1961-1995), Emerging market countries 135 banks in, 156,316,341 labor costs, real unit (1961-1995), crisis prevention policies for, 174- 121, 136 179 occupied population (1961-1995), 137 crisis recovery policies for, 172-174 price deflator (GDP at market prices), debt contracts in, 154-155, 173 133 economic characteristics of, 128 productivity growth (1977-1996), 138 IMF surveillance of, 316, 330--331 unemployment rate (1961-1995), 120, monetary policies for, 173 138 Tequila effect for, 187,328-333, wage share, adjusted (1961-1995), 337-339 139 EMS band, 97 European Economic Community (EEC) fluctuations in, 42 Finance Ministers meeting (Bath), 68 lira's position in, 85-86 history of, 40--43 margins widened (1993),50--51, 118 Monetary Committee meeting (Aug. parity adjustments in, 42 28, 1992), 68 EMS 11,107 monetary integration in, 40 EMU. see Economic and Monetary European Monetary System (EMS), 131. Union (EMU) see also Exchange Rate Enhanced Structural Adjustment Facility Mechanism, EMS (ERM) (lMF), 303, 307, 329-330 after EMU, 102-103 Equatorial Guinea, 127 benefits of, 43 ERM. see Exchange Rate Mechanism, Bretton Woods System compared, 43 EMS(ERM) crisis in (1992), 56, 59---60 ESB (European System of Central as de/acto monetary union, 47-48 Banks), 51, 122 ECU in, 41-42, 118 EU. see European Union (EU) history of, 41, 43-51, 118-123 Euro, 104. see also Single currency intervention rules in, 42, 45, 118 benefits of, 331, 338 Italy in, 60---63 exchange policy of, 53, 103 members of, 118 function of, 51-52 principles of, 43 European Central Bank (ECB), 32, 46, safeguards in, 118 52, 105, 108 stability policy, 43, 44-45 accountability of, 101 European Monetary Union, 49. see also exchange policy of, 103-104 European Union (EU) responsibilities of, 51, 102-103 European Single Market, 34, 56 European countries. see also specific European System of Central Banks countries (ESCB), 51, 122 compensation per employee European Union, Treaty on, 64 (1961-1995), 120, 134 European Union (EU), 21.