ASIA’S RESERVE ACCUMULATION: PART OF A NEW PARADIGM
Journal Title: Asian Economic and Financial Review - Year 2016, Vol 6, Issue 8
Abstract
So far, various contributions have failed to explain Asia?s fat foreign currency reserve accumulation. In this paper, I analyze reserve holding decisions in a wider social, political, and economic context. Using Weber?s heuristic of ideas and interests as determinants of actions, I show that Asian countries? reserve accumulation is caused by a paradigm shift. In Asia?s former Development State paradigm, accumulation of huge reserves was not of central importance because of closed and heavily regulated financial markets. After the Development State paradigm had collapsed in the 1980s, a new paradigm was built around the ideas of liberalism, the unconditional avoidance of any further financial crisis, and high employment. In order to harmonize the requests of liberal politics and open financial markets in addition to ?full? employment driven by export-led growth and the avoidance of further crises, hoarding reserves was a suitable strategy.
Authors and Affiliations
Florian Brugger| University of Graz, 8010 Graz, Universitätsstraße 15 Bauteil G/IV Austria
Keywords
Related Articles
- EP ID EP2292
- DOI -
- Views 542
- Downloads 39
THE EFFECT OF ENERGY CONSUMPTION ON ECONOMIC GROWTH IN CAMEROON
This study was carried out to determine the Effect of Energy Consumption on Economic Growth in Cameroon from the period of 1980 to 2014. The energy sources used to test for this relationship were Petroleum and electricit...
TRADE-GROWTH NEXUS IN DEVELOPING AND DEVELOPED COUNTRIES: AN APPLICATION OF EXTREME BOUNDS ANALYSIS
In this study, we investigated the relationship between foreign trade and economic growth in the developing and developed countries by using extreme bounds analysis approach. For this we used unbalanced panel data of 103...
THE EFFECT OF HIV/AIDS ON ECONOMIC GROWTH OF SOUTHERN AFRICAN COUNTRIES
This paper contributes to the existing literature by investigating the effect of health on overall economic growth in southern African nations. We examine interactions between health and economic growth by including both...
The Corruption and the Quality of Auditing Standards
The paper uses cross country regression analysis on a data set consisting of one hundred thirty countries for the year 2008 to test whether better auditing standards lead to lower levels of corruption. The results are co...
UNDERSTANDING DIAMOND PRICING USING UNCONDITIONAL QUANTILE REGRESSIONS
This paper investigates the relationship between the selling price of diamonds and their weight in carats. For this purpose, we use a unique sample of 112,080 certified diamonds collected from www.info-diamond.com during...