Political and social forces exert pressure on our globalized economy in many forms, from formal and informal policies to financial theories and technical models. Our efforts to shape and direct these forces to preserve financial stability reveal much about the ways we perceive the financial economy. The Handbook of Safeguarding Global Financial Stability examines our political economy, particularly the ways in which these forces inhabit our institutions, strategies, and tactics. As economies expand and contract, these forces also determine the ways we supervise and regulate. This high-level examination of the global political economy includes articles about specific countries, crises, and international systems as well as broad articles about major concepts and trends.

Table of Contents

• Editor-in-Chief
• Section Editors
• Preface
• Contributors
• I Political Economy of Financial Globalization
• China and Financial Globalization
• Emerging Markets Politics and Financial Institutions
• The Political Economy of Exchange-Rate Policy
• Financial Institutions, International and Politics
• Political Economy of Foreign Aid, Bilateral
• Interest Group Politics
• International Conflicts
• The Political Economy of International Monetary Policy Coordination
• II Theoretical Perspectives on Financial Globalization
• Theoretical Perspectives, Overview
• Capital Mobility and Exchange Rate Regimes
• Microstructure of Currency Markets
• Intertemporal Approach to the Current Account
• Endogenous Portfolios in International Macro Models
• Financial Contagion
• Financial Development and Global Imbalances
• Foreign Currency Debt
• International Trade and International Capital Flows
• International Macro-Finance
• Monetary Policy and Capital Mobility
• Theory of Sovereign Debt and Default
• Tax Systems and Capital Mobility
• Trade Costs and Home Bias
• Explaining Deviations from Uncovered Interest Rate Parity
• Valuation Effects, Capital Flows and International Adjustment
• III Safeguarding Global Financial Stability
• Safeguarding Global Financial Stability, Overview
• Resolution of Banking Crises
• Advantages and Drawbacks of Bonus Payments in the Financial Sector
• Central Banks Role in Financial Stability
• Organization, Supervision and Resolution of Cross-border Banking
• Dynamic Provisioning to Reduce Procyclicality in Spain
• Varieties of European Crises
• The Financial Sector Assessment Program
• Financial Sector Forum/Board
• Financial Stability and Inflation Targeting
• Financial Supervision in the EU
• Groups: G-5, G-7/8, G-10, G-20, and Others
• Market Structures and Market Abuse
• Development and Evolution of International Financial Architecture
• On the Role of the Basel Committee, the Basel Rules, and Banks' Incentives
• International Monetary Fund
• Innovations in Lender of Last Resort Policy in Europe
• Micro and Macro Prudential Regulation
• Role and Scope of Regulation and Supervision
• Independence and Accountability of Regulatory Agencies
• Institutional Structures of Regulation
• Organizations of International Co-operation in Standard-Setting and Regulation
• Prevention of Systemic Crises
• Lines of Defense Against Systemic Crises: Resolution