Despite regular and serious systemic volatility, reform of international financial architecture remains limited, retaining market-oriented characteristics and adjustment mechanisms. A failure of the architecture to focus on the political underpinnings of global financial and monetary governance...

A dynamic stochastic model of global equilibrium, where countries outside the U.S. face higher risk than the U.S. itself, predicts current account surpluses in the RoW and U.S. deficits. With Loss Aversion, such precautionary savings can cause substantial 'global imbalances', particularly if...

Using dynamic panel data techniques and data from 43 developing countries during 1980-2001, we provide evidence which suggests that openness and institutions are important determinants of financial development. Openness, in terms of trade and capital flows, is particularly potent in promoting...