The focus of international financial reform in recent years has largely been on a global level, in terms of improving the international financial architecture, and on a national level, in terms of getting domestic economic and structural policies right. But there is also a growing appetite for addressing issues on a regional level. In East Asia, for example, governments have sought deeper regional policy dialogue with the creation of the ASEAN+3 forum and enhanced financial cooperation by setting up the Chiang Mai Initiative. In order to maintain strong and effective regional institutions Financial Governance in East Asia argues that regional policy dialogue and surveillance processes will have to be improved, as well as further development of regional mechanisms to provide financial support to prevent and resolve financial crises. These developments raise many questions including: What is 'best-practice' regional policy dialogue? How is a regional financial architecture complementary to the global architecture? What sorts of institutions work well at a regional level? Do regions need a regional monetary fund?
What is going on in East Asia and how is it different to other regions? By outlining the importance of a well-designed regional architecture alongside global mechanisms and sound domestic policies, the contributors argue that although there is no single track to reduce the risks of financial crises, there is certainly a place for regional institutions and cooperation. This book will interest all those concerned with the financial future of East Asia whether from an Asian Studies, economics or business studies background.