Financial Resilience of Integrating Emerging Economies

This project analyses financial resilience of emerging economies in response to post-crisis policy responses by investigating cross-border financial and regulatory interconnections between advanced and emerging economies. Based on the evidence we find, we assess financial resilience of key emerging economies and propose measures to strengthen resilience.

The past decade has seen profound shifts in the global environment in which emerging economies operate. Unconventional monetary policies in advanced economies have given rise to capital flows of previously unseen magnitude and volatility.  Post-crisis overhauls of financial regulations have focused on problems in advanced country financial systems, but they have also had significant repercussions for less developed financial systems. Meanwhile, as emerging economies have grown larger and their financial systems more integrated into the global economy, feedback loops from them have become material. 

To assess financial resilience of emerging economies, the project focuses on three interrelated issues in the interface of economics and political science: (1) advanced country monetary policy constraints on emerging economies; (2) economic integration with distorted and underdeveloped financial systems; (3) the impact of all this on the role of central banks in emerging economies, also taking into account ongoing changes in the role of central banks in advanced economies.

Period: 24 months

Investigators

Piroska Nagy Mohacsi

Piroska Nagy Mohacsi

Piroska is Programme Director in the Institute of Global Affairs at the London School of Economics (LSE) since September 2015.  

She is responsible for various global policy initiatives and for setting up the Institute’s Eurasia centre and INet hub. Previously she was Director at the Office of the Chief Economist of the European Bank for Reconstruction and Development (EBRD), overseeing the EBRD’s strategic directions in Emerging Europe, Central Asia and North Africa as well as key policy initiatives such as local capital market development, food security, health and climate change. She was also responsible for the EBRD’s economic forecast exercise and co-led the Vienna Initiative, a public-private crisis management and coordination platform in emerging Europe, and headed its Secretariat.

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Mario-Blejer

Dr Mario Blejer

Dr Mario Blejer is a Visiting Professor in the Institute of Global Affairs at the London School of Economics.He has held the positions of Governor of the Central bank of Argentina, Senior Adviser to the Governor of the Bank of England and Director of its Centre for Central Banking Studies, and held senior positions at the International Monetary Fund and the World Bank. Currently he is Deputy Chairman of Banco Hipotecario, one of Argentina’s largest commercial banks and Board Director, IRSA, Argentina’s largest real estate company. Mario held the Walter Rathenau Chair in European Economics at the Hebrew University of Jerusalem and was Director of the Helmut Kohl Institute.

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Keyu Jin

Dr Keyu Jin

Dr Keyu Jin is Associate Professor of Economics, at the Department of Economics, London School of Economics and Political Science.

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Outputs

Kilian Huber (October 2017): Are Bigger Banks Better? Firm-Level Evidence from Germany

Vito Tanzi (Janaury 2019): Fiscal Resilience - Termites of the State: The Elusice Search for Harmony Between State and Market

Ousmène Jacques Mandeng (January 2019): Basic principles for regulating crypto-assets

Dimitri G Demekas (April 2019): Building an Effective Financial Stability Policy Framework: Lessons from the Post-Crisis Decade

Ousmène Jacques Mandeng (June 2019): Digital currencies: New technologies and old monetary ideas