External publications

Regional financial integration in East Asia against the backdrop of recent European experiences

Volz, Ulrich
External Publications (2016)

in: International Economic Journal 30 (2), 272-293

DOI: https://doi.org/10.1080/10168737.2016.1148426
Information

This article discusses recent trends in regional financial integration in East Asia and the current efforts of the Association of Southeast Asian Nations (ASEAN) member countries to foster regional financial integration against the backdrop of three decades of experience with financial integration in Europe. It reviews the two major crisis episodes of the recent European financial history to illustrate the risks associated with comprehensive capital account liberalisation and financial integration without commensurate supervisory structures. The article highlights the importance of targeted macroprudential policies and the development of an adequate region-wide regulatory and supervisory framework to reduce the risks associated with regional – and hence international – financial integration.