International Finance in Emerging Markets : Issues, Welfare Economics Analyses and Policy Implications

This book reviews the contemporary issues in international monetary and financial economics (such as financial liberalisation, crisis, exchange rate determination, capital control, domestic capital market reform, etc.) in an emerging financial market such as Thailand from a welfare economic p- spective, highlighting the social welfare implications of these issues. This 3 book also suggests a normative social approach (as formalised in the new welfare economics paradigm) (see Islam 2001a,b for a discussion of this ; concept) for analysing and addressing these issues and formulating appr- riate policies. Undertaking the above tasks, the asymmetric information paradigm 3 and other elements of the new welfare economics paradigm are adapted in analysing the international financial issues of Thailand, their causes and economic and social welfare consequences. The last two decades have been a critical period for Thailand’s dev- opment. From the mid-1980s to the beginning of the 1990s, the Thai economy performed remarkably well and was a showcase for the world economy. Having achieved a double-digit growth rate for a brief period, Thailand in the late 1980s was regarded as the fastest growing economy in the world by the World Bank and the IMF. With prospects of further rapid economic growth, the Thai government accepted Article VIII of the IMF, which required Thailand to liberalise and deregulate its financial system.

The book "International Finance in Emerging Markets" reviews contemporary issues in international monetary and financial economics in an emerging financial market using the example of Thailand. The book adopts the elements of new welfare economics and asymmetric information paradigms in analyzing those issues including financial liberalization, crisis, exchange rate determination, and domestic capital market reform. The book suggests for the first time a normative social approach for addressing the contemporary issues in international monetary and financial economics. It provides an example of cutting edge research in international finance and monetary economics within a welfare economics framework. It also suggests some policy implications of the welfare economic analysis of international financial issues in  an emerging market.

"This new book suggests a normative social approach for addressing international monetary and financial economic issues. To this end, the novelty of the book is to make use of new welfare economics and asymmetric information paradigms in analyzing the international financial issues in Thailand. Surely this book will soon become an important reference book by researchers, academics, professionals and postgraduate students in the areas of finance, financial economics and monetary economics."

Dr. Bruno S. Sergi, Professor of International Economics, University of Messina, Italy

" This book addresses contemporary issues in international monetary policy and finance from a welfare economics perspective, focusing on emerging market nations such as Thailand. It is a welcome contribution to the international finance literature."

Prof. Steven L. Schwarcz, Stanley A. Star Professor of Law & Business, and Founding Director, Global Capital Markets Center, Duke University, USA