OFFICIAL RECORD of PROCEEDINGS Thursday, 22 June
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From Asian to Global Financial Crisis
This page intentionally left blank FROM ASIAN TO GLOBAL FINANCIAL CRISIS This is a unique insider account of the new world of unfettered finance. The author, an Asian regulator, examines how old mindsets, market fundamental- ism, loose monetary policy, carry trade, lax supervision, greed, cronyism, and financial engineering caused both the Asian crisis of the late 1990s and the cur- rent global crisis of 2007–2009. This book shows how the Japanese zero inter- est rate policy to fight deflation helped create the carry trade that generated bubbles in Asia whose effects brought Asian economies down. The study’s main purpose is to demonstrate that global finance is so interlinked and interactive that our current tools and institutional structure to deal with critical episodes are completely outdated. The book explains how current financial policies and regulation failed to deal with a global bubble and makes recommendations on what must change. Andrew Sheng is currently the Chief Adviser to the China Banking Regulatory Commission and a Board Member of the Qatar Financial Centre Regulatory Authority, Khazanah Nasional Berhad and Sime Darby Berhad, Malaysia. He is also Adjunct Professor at the Graduate School of Economics and Management, Tsinghua University, Beijing, and at the Faculty of Economics and Administration at the University of Malaya, Kuala Lumpur. Mr Sheng was Chairman of the Securities and Futures Commission of Hong Kong from 1998 to 2005. A former central banker with Bank Negara Malaysia and Hong Kong Monetary Authority, between 2003 and 2005 he was Chairman of the Technical Committee of IOSCO, the International Organization of Securities Commissions, the standard setter for securities regulation. -
Who We Are and What We Do
Who We Are and What We Do The Securities and Futures Commission (SFC) is an independent statutory body established by the Securities and Futures Commission Ordinance (SFCO). The SFCO and nine other securities and futures related ordinances were consolidated into the Securities and Futures Ordinance (SFO), which came into operation on 1 April 2003. We are responsible for administering the laws governing the securities and futures markets in Hong Kong and facilitating and encouraging the development of these markets. Our statutory regulatory objectives as set out in the SFO are: >> to maintain and promote the fairness, >> to minimise crime and misconduct in the efficiency, competitiveness, securities and futures industry; transparency and orderliness of the >> to reduce systemic risks in the securities securities and futures industry; and futures industry; and >> to promote understanding by the >> to assist the Financial Secretary in public of the operation and maintaining the financial stability of functioning of the securities and Hong Kong by taking appropriate steps in futures industry; relation to the securities and futures >> to provide protection for members of industry. the public investing in or holding financial products; In carrying out our mission, we aim to ensure Hong Kong’s continued success and development as an international financial centre. The SFC is divided into four operational divisions: Corporate Finance, Intermediaries and Investment Products, Enforcement, and Supervision of Markets. The Commission is supported by -
Central Banks Can and Should Do Their Part in Funding Sustainability Andrew Sheng
FIXING CLIMATE GOVERNANCE SERIES PAPER NO. 1 — JUNE 2015 CENTRAL BANKS CAN AND SHOULD DO THEIR PART IN FUNDING SUSTAINABILITY ANDREW SHENG CENTRAL BANKS CAN AND SHOULD DO THEIR PART IN FUNDING SUSTAINABILITY Andrew Sheng Copyright © 2015 by the Centre for International Governance Innovation The opinions expressed in this publication are those of the author and do not necessarily reflect the views of the Centre for International Governance Innovation or its Board of Directors. This work is licensed under a Creative Commons Attribution — Non-commercial — No Derivatives License. To view this license, visit (www.creativecommons.org/ licenses/by-nc-nd/3.0/). For re-use or distribution, please include this copyright notice. 67 Erb Street West Waterloo, Ontario N2L 6C2 Canada tel +1 519 885 2444 fax +1 519 885 5450 www.cigionline.org TABLE OF CONTENTS iv About the Fixing Climate Governance Project iv About the Author 1 Acronyms 1 Executive Summary 1 Introduction 2 The Potential Supply of Investments Is Sufficient to Meet the Demand 3 Central Banks Can Hold Diverse Types of Assets 4 Central Banks Should Factor Social Objectives into Their Investment Decisions 7 Concluding Observations 8 Acknowledgements 9 Works Cited 12 About CIGI 12 CIGI Masthead FIXING Climate GOVERNANCE SERIES paper NO. 1 — JUNE 2015 ABOUT THE FIXING CLIMATE ABOUT THE AUTHOR GOVERNANCE PROJECT Project Leaders: John Odell, CIGI Senior Fellow and David Runnalls, CIGI Distinguished Fellow Climate scientists agree that human activity has been changing our planet’s climate over the long term. Without serious policy changes, scientists expect devastating consequences in many regions: inundation of coastal cities; greater risks to food production and, hence, malnutrition; unprecedented heat waves; greater risk of high- intensity cyclones; many climate refugees; and irreversible loss of biodiversity. -
Asia and the Global Financial Crisis: Conference Volume
ASIA AND THE GLOBAL FINANCIAL CRISIS Asia Economic Policy Conference Sponsored by the Federal Reserve Bank of San Francisco ASIA AND THE GLOBAL FINANCIAL CRISIS Edited by Reuven Glick Mark M. Spiegel Asia Economic Policy Conference Sponsored by the Federal Reserve Bank of San Francisco Santa Barbara, California October 19–20, 2009 The articles in this publication can be obtained in electronic form from the Federal Reserve Bank of San Francisco’s website: http://www.frbsf.org/economics/conferences/aepc/2009/agenda.php Contents Foreword . 1 Janet L. Yellen, President and CEO, Federal Reserve Bank of San Francisco Conference Summary . 3 Reuven Glick, Group Vice President, Federal Reserve Bank of San Francisco Mark M. Spiegel, Vice President, Federal Reserve Bank of San Francisco Welcome Address . 11 Asia and the Global Financial Crisis Ben S. Bernanke, Chairman, Board of Governors of the Federal Reserve System General Discussion . 23 The Impact of the Financial Crisis on Emerging Asia . 27 Morris Goldstein, Dennis Weatherstone Senior Fellow, Peterson Institute for International Economics Daniel Xie, Research Assistant, Peterson Institute for International Economics commentary . 81 Michael Mussa, Senior Fellow, Peterson Institute for International Economics General Discussion . 85 Lessons from Asian Financial Experience . 93 Anne O. Krueger, Professor of International Economics, Paul H. Nitze School of Advanced International Studies, Johns Hopkins University commentary . 115 Andrew Sheng, Chief Adviser, China Banking Regulatory Commission General Discussion . 123 Global Imbalances and the Financial Crisis: Products of Common Causes . 131 Maurice Obstfeld, Class of 1958 Professor of Economics, University of California, Berkeley Kenneth Rogoff, Professor of Economics and Thomas D. Cabot Professor of Public Policy, Harvard University commentary . -
REVISTA ELETRÔNICA DE DIREITO DO CENTRO UNIVERSITÁRIO NEWTON PAIVA N.30 | Setembro / Dezembro 2016
ISSN 1678-8729 REVISTA ELETRÔNICA DE DIREITO DO CENTRO UNIVERSITÁRIO NEWTON PAIVA N.30 | Setembro / Dezembro 2016 PUBLICAÇÃO DA ESCOLA DE DIREITO ISSN 1678-8729 REVISTA ELETRÔNICA DE DIREITO DO CENTRO UNIVERSITÁRIO NEWTON PAIVA N.30 | Setembro / Dezembro 2016 PUBLICAÇÃO DA ESCOLA DE DIREITO ©2016 Centro Universitário Newton Paiva 2016 ESTRUTURA FORMAL DA INSTITUIÇÃO PRESIDENTE DO GRUPO SPLICE: Antônio Roberto Beldi REITOR: João Paulo Beldi DIRETOR ACADÊMICO: Celso Braga DIRETOR AdministratiVO E FINANCEIRO: Cláudio Geraldo Amorim de Sousa SECRETÁRIA GERAL: Jacqueline Guimarães Ribeiro COORDENADOR GERAL DA ESCOLA DE DIREITO: Emerson Luiz de Castro COORDENAÇÃO ADJUNTA: Sabrina Torrês Lage Peixoto de Melo e Valéria Edith Carvalho de Oliveira CENTRO UNIVERSITÁRIO NEWTON PAIVA ESCOLA DE DIREITO Av. Presidente Carlos Luz, 220 - Caiçara Av. Barão Homem de Melo, 3322 - Buritis Belo Horizonte - Minas Gerais - Brasil EXPEDIENTE EDITOR Michael César Silva CONSELHO EDITORIAL Alejandro Marcelo Medici | Universidad Nacional de La Pampa Santa Rosa, La Pampa, Argentina Carlos Augusto Teixeira Magalhães | Escola de Direito do Centro Universitário Newton Paiva, Belo Horizonte, Minas Gerais, Brasil Carlos Frederico Marés de Souza Filho | Pontifícia Universidade Católica do Paraná, Curitiba, Paraná, Brasil Carlos Henrique Bezerra Leite | Faculdade de Direito de Vitória, Vitória, Espírito Santo, Brasil César Fiuza | Pontifícia Universidade Católica de Minas Gerais, Belo Horizonte, Minas Gerais, Brasil Claudia Lima Marques | Universidade Federal do Rio Grande -
Strengthening the Banking System in China: Issues and Experience
BIS BIS POLICY PAPERS No. 7 – October 1999 STRENGTHENING THE BANKING SYSTEM IN CHINA: ISSUES AND EXPERIENCE A joint BIS/PBC conference held in Beijing, China, 1–2 March 1999 BANK FOR INTERNATIONAL SETTLEMENTS Monetary and Economic Department Basel, Switzerland ISSN 1027-6297 POLICY PAPERS No. 7 BIS Policy Papers are based on papers prepared for meetings sponsored or co-sponsored by the BIS. They are published by the Bank with the aim of stimulating discussion of the topics with which they deal. The views expressed in this paper are those of their authors and not necessarily the views of the BIS, the People’s Bank of China or any other institution represented. Copies of publications are available from: Bank for International Settlements Information, Press & Library Services CH-4002 Basel, Switzerland Fax: +41 61 / 280 91 00 and +41 61 / 280 81 00 © Bank for International Settlements 1999. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1027-6297 Also published in Chinese. Available in English on the BIS website (www.bis.org). BIS POLICY PAPERS No. 7 – October 1999 STRENGTHENING THE BANKING SYSTEM IN CHINA: ISSUES AND EXPERIENCE A joint BIS/PBC conference held in Beijing, China, 1–2 March 1999 BANK FOR INTERNATIONAL SETTLEMENTS Monetary and Economic Department Basel, Switzerland Table of contents Page PREFACE . 1 PARTICIPANTS IN THE MEETING . 7 OPENING ADDRESS Dai Xianglong . 11 THE MACROECONOMIC CONTEXT The challenge of bank restructuring in China Nicholas R Lardy . 17 Heading off China’s financial crisis Rudi Dornbusch and Francesco Giavazzi . -
The Decision by the Court of Final Appeal to Seek An
Legislative Council Secretariat FS17/11-12 FACT SHEET The decision by the Court of Final Appeal to seek an interpretation of the Basic Law from the Standing Committee of the National People's Congress regarding the controversy of state immunity raised in the debt litigation of the Democratic Republic of Congo 1. Background 1.1 In respect of the case of Democratic Republic of Congo & Ors v FG Hemisphere Associates LLC ("Congo Case"), the judgment of the Court of Final Appeal ("CFA") of the Hong Kong Special Administrative Region ("HKSAR"), dated 8 June 2011, ordered to seek an interpretation of Articles 13(1) and 19 of the Basic Law 1 from the Standing Committee of the National People's Congress ("SCNPC"). In view of the great importance of the CFA decision, Members agreed at the House Committee meeting on 7 October 2011 to invite the Secretary for Justice to attend a meeting of the Panel on Administration of Justice and Legal Services to brief them on the matter. To facilitate Members' discussion on the Congo Case, this fact sheet provides a summary of relevant news reports and commentaries. 2. Highlight of the Congo Case 2.1 The Democratic Republic of Congo ("Congo") entered into contract with a Yugoslav company for construction of hydroelectric facilities, and broke the contract at last. The ensuing arbitration ruled in favour of the Yugoslav company, but Congo defaulted on the arbitral awards granted against it. FG Hemisphere Associates LLC ("FG"), a United States debt fund, later purchased the awards from the Yugoslav company. A consortium of Chinese state-owned companies acquired mineral exploitation rights in Congo had to pay entry fees to the country. -
Download SUR 13 In
ISSN 1806-6445 13 international journal on human rights Glenda Mezarobba Between Reparations, Half Truths and Impunity: The Diffi cult Break with the Legacy of the Dictatorship in Brazil v. 7 • n. 13 • dec. 2010 Gerardo Arce Arce Biannual Armed Forces, Truth Commission and Transitional Justice in Peru English Edition REGIONAL HUMAN RIGHTS MECHANISMS Felipe González Urgent Measures in the Inter-American Human Rights System Juan Carlos Gutiérrez and Silvano Cantú The Restriction of Military Jurisdiction in International Human Rights Protection Systems Debra Long and Lukas Muntingh The Special Rapporteur on Prisons and Conditions of Detention in Africa and the Committee for the Prevention of Torture in Africa: The Potential for Synergy or Inertia? Lucyline Nkatha Murungi and Jacqui Gallinetti The Role of Sub-Regional Courts in the African Human Rights System Magnus Killander Interpreting Regional Human Rights Treaties Antonio M. Cisneros de Alencar Cooperation Between the Universal and Inter-American Human Rights Systems in the Framework of the Universal Periodic Review Mechanism IN MEMORIAM Kevin Boyle – Strong Link in the Chain By Borislav Petranov EDITORIAL BOARD ADVISORY BOARD Christof Heyns University of Pretoria (South Africa) Alejandro M. Garro Columbia University (United States) Emilio García Méndez University of Buenos Aires Bernardo Sorj Federal University of Rio de Janeiro / Edelstein (Argentina) Center (Brazil) Fifi Benaboud North-South Centre of the Council of Bertrand Badie Sciences-Po (France) Europe (Portugal) Cosmas Gitta UNDP (United States) Fiona Macaulay Bradford University (United Kingdom) Daniel Mato Central University of Venezuela (Venezuela) Flavia Piovesan Pontifical Catholic University of São Paulo (Brazil) Daniela Ikawa Public Interest Law Institute (United States) J. -
Andrew Sheng Transcript
THE BROOKINGS INSTITUTION Brookings - Tsinghua Center for Public Policy (BTC) Andrew Sheng Presentation Transcript Andrew Sheng: From 1993 to Sept 98 I was deputy chief executive of the Hong Kong monetary authority. I was in charge of the reserves. In the earlier phase I was in charge of the Hong Kong Dollar, and I then was also in charge of […] which meant that I was the major interface with the regional central banks of trying to maintain regional currency stability. The timeline for the Asian crisis is very important. Because if you really look at it, all of it could go back to ‘85, when because of the Japan-US trade imbalance, very much similar to what is happening now, the Americans put pressure on Japan to revalue the yen. And the yen was revalued from 240 to 120. But once the yen gets revalued, as you know, Japan had no exchange control. There was a massive stock market and property bubble. And the Japanese market peaked in December 1989, when the Nikkei index reached 39,400. What is the Nikkei today? 10000. What was it at its lowest point? 6008. So, the Japanese stock market never recovered from its bubble. Now in 1994 there was a Mexican crisis. Mexico was overvalued, had far too much in terms of, what is called the “peso bono,” which is basically the treasury bills in Mexico, and then the US had to lend a large amount of money to rescue Mexico. Then in 1995, the yen went all the way from 240 in 85 to 80. -
Conference Proceedings Financial Reform and the Real Economy
Conference Proceedings Levy Economics Institute of Bard College th ANNUAL HYMAN P. MINSKY CONFERENCE ON THE STATE OF THE US AND 20WORLD ECONOMIES Financial Reform and the Real Economy April 13–15, 2011, New York City A conference organized by the Levy Economics Institute of Bard College with support from the Contents FOREWORD 1 PROGRAM 2 WELCOME AND INTRODUCTION 5 Leonardo Burlamaqui Dimitri B. Papadimitriou SPEAKERS Gary Gensler 10 Stephen S. Roach 19 Paul A. McCulley 24 Andrew Sheng 31 Phil Angelides 45 Charles I. Plosser 54 Gary B. Gorton 63 Mercedes Marco Del Pont and Arturo O’Connell 72 Paul Tucker 81 Athanasios Orphanides 98 Charles L. Evans 106 Vítor Constâncio 117 Sheila C. Bair 134 Martin Mayer 145 SESSIONS 1. The Ford–Levy Institute Project on Financial Instability and the 148 Reregulation of Financial Institutions and Markets 2. Financial Journalism and Financial Reform: What’s Missing from the Headlines? 155 3. Swaps Regulation 159 4. Financial Reform and the GATS: Challenges and Opportunities 164 5. Fiscal Constraints and Macro Perspectives 169 6. Reregulating the US Financial System: Beyond Dodd-Frank 175 PARTICIPANTS 180 The proceedings consist of transcripts of the speakers’ remarks and summaries of session participants’ presentations. Foreword Welcome to the 20th Annual Hyman P. Minsky Conference, “Financial Reform and the Real Economy.” Organized by the Levy Economics Institute with support from the Ford Foundation, this year’s confer- ence marks the Institute’s 25th anniversary, and the third year of its joint initiative on reforming global financial governance. As part of its monetary policy research, that the Institute is partnering with the Ford Foundation to examine financial instability and reregulation within the context of Minsky’s work on financial crises. -
Bank of England Festschrift for Professor Charles Goodhart 15-16 November 2001
Bank of England Festschrift for Professor Charles Goodhart 15-16 November 2001 Is there a Goodhart’s Law of financial regulation? By Andrew Sheng & Tan Gaik Looi ∗ Introduction I am very grateful to the Bank of England for inviting me to this Festschrift in honour of Professor Charles Goodhart. As another doyen of central banking, Gerry Corrigan likes to say, a man may leave central banking, but his heart never leaves central banking. As a young central banker who learnt his craft in the developing world under the late and legendary Tun Ismail Mohd Ali of Bank Negara Malaysia, I met Charles at one of the Commonwealth Central Bankers’ meetings in the late 1970s. This used to be hosted by the Bank in the Oak Room just before the BIS Annual Meetings. I remember asking Charles one of those naïve questions on interest rate policy, for which I got a clear thoughtful answer that provoked my thinking for the rest of the trip. My next encounter with Charles was reading his book on Money, Information and Uncertainty. Our paths crossed again in Hong Kong in ∗ The views expressed in this paper are solely those of the authors and do not reflect the views of the Securities and Futures Commission, Hong Kong 2 1993, when I assumed duties at the Hong Kong Monetary Authority. Charles was not only a member of the Exchange Fund Advisory Committee, but was also one of the founders of the Hong Kong Link to the US dollar, commonly called the peg. He was asked by the Bank in the dire days of 1983 to advise on what to do to stabilise the Hong Kong dollar in the politically volatile days of Anglo-Chinese discussions on the future of Hong Kong. -
In the Early 20Th Century, Hong Kong Was the Source of Inspiration and the Political Base for Sun Yat-Sen in the Republican Revolution That Toppled the Qing Dynasty
Peter t. Y. Cheung Who’s Influencing Whom? exPlorIng the InfluenCe of hong Kong on PolItics and governanCe In ChIna aBSTRACt This paper explores how Hong Kong has influenced Chinese politics and governance in the constitutional, political, ideational, and intergovernmental dimensions since 1997. Despite the growing political and economic impact of the Mainland on the Hong Kong Special Administrative Region, the latter has continued to influence the Mainland, especially southern China. K e YW o r d s : China, governance, Hong Kong, intergovernmental relations, South China In the early 20th century, Hong Kong was the source of inspiration and the political base for Sun Yat-sen in the Republican revolution that toppled the Qing Dynasty. After the Communist revolution in 1949, Hong Kong continued to exist as a British colony and became one of the newly industrializing economies by the 1970s. It would be difficult to imagine Chi- na’s reform trajectory without Hong Kong’s having played a key role as a trading partner, financier, and investor in the reform era after 1978. Hong Kong had served as the main reference model for Guangdong Province, which championed reform and an open door policy for the entire country. Most studies on the relationship between the Mainland and Hong Kong since its return to Chinese sovereignty in 1997 highlight their growing integration.1 Despite Hong Kong’s significance as a gateway for China to the Peter T. Y. Cheung is Associate Professor and Director of the Master’s of Public Administration program in the Department of Politics and Public Administration at the University of Hong Kong.