The BRICS contingent reserve arrangement and its position in the emerging global financial architecture
- Cattaneo, Nicolette S, Biziwick, Mayamiko, Fryer, David
- Authors: Cattaneo, Nicolette S , Biziwick, Mayamiko , Fryer, David
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470366 , vital:77352 , ISBN
- Description: In its present shape and size the BRICS Contingent Reserve Arrangement (CRA) should be regarded as symbolic and exploratory rather than as a substantive challenger to the International Monetary Fund (IMF). However, the momentum of the BRICS process and the experience of the similar Association of Southeast Asian Nations plus Three (ASEAN+ 3) process suggest that the CRA has the potential to develop in two directions. Firstly, it should aim to become an adequate safety net and provide high-quality macroeconomic monitoring, and hence ensure participating countries’ independence from the IMF. Secondly, it should aim to draw in other emerging economies. However, the CRA in itself does not represent a significant break from prevailing orthodoxy. Its limited scope may condemn it to playing a bit part in the global financial system.
- Full Text:
- Date Issued: 2015
- Authors: Cattaneo, Nicolette S , Biziwick, Mayamiko , Fryer, David
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470366 , vital:77352 , ISBN
- Description: In its present shape and size the BRICS Contingent Reserve Arrangement (CRA) should be regarded as symbolic and exploratory rather than as a substantive challenger to the International Monetary Fund (IMF). However, the momentum of the BRICS process and the experience of the similar Association of Southeast Asian Nations plus Three (ASEAN+ 3) process suggest that the CRA has the potential to develop in two directions. Firstly, it should aim to become an adequate safety net and provide high-quality macroeconomic monitoring, and hence ensure participating countries’ independence from the IMF. Secondly, it should aim to draw in other emerging economies. However, the CRA in itself does not represent a significant break from prevailing orthodoxy. Its limited scope may condemn it to playing a bit part in the global financial system.
- Full Text:
- Date Issued: 2015
The rationale for and potential role of the BRICS Contingent Reserve Arrangement
- Biziwick, Mayamiko, Cattaneo, Nicolette S, Fryer, David
- Authors: Biziwick, Mayamiko , Cattaneo, Nicolette S , Fryer, David
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470386 , vital:77354 , https://doi.org/10.1080/10220461.2015.1069208
- Description: This article examines the potential role the BRICS Contingent Reserve Arrangement (CRA) could play in stabilising countries experiencing a high degree of economic volatility. The CRA is a US$100 billion pooled reserve fund that has its origins in the fifth BRICS Summit hosted in Durban. The CRA was set up to help emerging nations deal with liquidity shortages and to strengthen financial systems during crisis. The article examines the debate on the effect of capital market liberalisation and collates some relevant macroeconomic data on the BRICS economies in order to explore the case for a contingent reserve facility. It is found that emerging economies that rapidly liberalised their capital accounts experienced increased economic volatility, creating an uncertain macroeconomic environment and hampering the ability of policymakers to conduct appropriate stabilisation policy. The article takes the position that the CRA could play an important role in providing liquidity to distressed emerging economies. However it concludes that the CRA facility does not signal a significant break from the Bretton Woods institutions on the part of the BRICS countries.
- Full Text:
- Date Issued: 2015
- Authors: Biziwick, Mayamiko , Cattaneo, Nicolette S , Fryer, David
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470386 , vital:77354 , https://doi.org/10.1080/10220461.2015.1069208
- Description: This article examines the potential role the BRICS Contingent Reserve Arrangement (CRA) could play in stabilising countries experiencing a high degree of economic volatility. The CRA is a US$100 billion pooled reserve fund that has its origins in the fifth BRICS Summit hosted in Durban. The CRA was set up to help emerging nations deal with liquidity shortages and to strengthen financial systems during crisis. The article examines the debate on the effect of capital market liberalisation and collates some relevant macroeconomic data on the BRICS economies in order to explore the case for a contingent reserve facility. It is found that emerging economies that rapidly liberalised their capital accounts experienced increased economic volatility, creating an uncertain macroeconomic environment and hampering the ability of policymakers to conduct appropriate stabilisation policy. The article takes the position that the CRA could play an important role in providing liquidity to distressed emerging economies. However it concludes that the CRA facility does not signal a significant break from the Bretton Woods institutions on the part of the BRICS countries.
- Full Text:
- Date Issued: 2015
Structural change, productivity and the middle income trap: South Africa in comparative perspective
- Fryer, David, Cattaneo, Nicolette S
- Authors: Fryer, David , Cattaneo, Nicolette S
- Date: 2014
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470354 , vital:77351 , ISBN
- Description: Most BRICS countries have been characterized as either being in the middle income trap (South Africa, and in most studies, Brazil) or vulnerable to it. While China and India are unlikely to stagnate to the extent of being caught in such a trap, there is concern about the impact on the global economy if their growth rates decelerate significantly. T his paper explores patterns of structural change and productivity growth in the BRICS countries with a focus on South Africa and the concept of a middle income trap. The paper is structured as follows. Section 1 considers definitions and which countries are affected. Section 2 considers competing explanations of patterns of structural change and productivity growth. Section 3 focuses on the productivity debate in South Africa from a comparative perspective. Section 4 concludes with policy implications and directions for future research in the BRICS countries.
- Full Text:
- Date Issued: 2014
- Authors: Fryer, David , Cattaneo, Nicolette S
- Date: 2014
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470354 , vital:77351 , ISBN
- Description: Most BRICS countries have been characterized as either being in the middle income trap (South Africa, and in most studies, Brazil) or vulnerable to it. While China and India are unlikely to stagnate to the extent of being caught in such a trap, there is concern about the impact on the global economy if their growth rates decelerate significantly. T his paper explores patterns of structural change and productivity growth in the BRICS countries with a focus on South Africa and the concept of a middle income trap. The paper is structured as follows. Section 1 considers definitions and which countries are affected. Section 2 considers competing explanations of patterns of structural change and productivity growth. Section 3 focuses on the productivity debate in South Africa from a comparative perspective. Section 4 concludes with policy implications and directions for future research in the BRICS countries.
- Full Text:
- Date Issued: 2014
Intra-versus inter-industry specialisation, labour market adjustment and poverty: implications for regional integration in Southern Africa
- Cattaneo, Nicolette S, Fryer, David
- Authors: Cattaneo, Nicolette S , Fryer, David
- Date: 2003
- Subjects: To be catalogued
- Language: English
- Type: text , working paper
- Identifier: http://hdl.handle.net/10962/470188 , vital:77334 , ISBN
- Description: Although there is little doubt that increasing trade enhances overall welfare, the literature provides strong theoretical arguments and empirical evidence that there may be important adverse effects for particular groups and countries. It is useful to divide these into two categories. Firstly, there are the long run distributional consequences of trade, such as those highlighted by the Stolper-Samuelson theorem. Secondly, to the extent that the adjustment to equilibrium is not smooth, there are important dislocations associated with the movement of factors between industries in the transition period. These adverse effects are important, both because of their welfare implications, and because the affected groups or countries will constitute a source of political resistance to trade. Offsetting this picture, however, is the important view that such effects, both in terms of the long-run distributional consequences and the dislocations during adjustment, are likely to be less if liberalisation leads to intra-industry rather than inter-industry specialisation.
- Full Text:
- Date Issued: 2003
- Authors: Cattaneo, Nicolette S , Fryer, David
- Date: 2003
- Subjects: To be catalogued
- Language: English
- Type: text , working paper
- Identifier: http://hdl.handle.net/10962/470188 , vital:77334 , ISBN
- Description: Although there is little doubt that increasing trade enhances overall welfare, the literature provides strong theoretical arguments and empirical evidence that there may be important adverse effects for particular groups and countries. It is useful to divide these into two categories. Firstly, there are the long run distributional consequences of trade, such as those highlighted by the Stolper-Samuelson theorem. Secondly, to the extent that the adjustment to equilibrium is not smooth, there are important dislocations associated with the movement of factors between industries in the transition period. These adverse effects are important, both because of their welfare implications, and because the affected groups or countries will constitute a source of political resistance to trade. Offsetting this picture, however, is the important view that such effects, both in terms of the long-run distributional consequences and the dislocations during adjustment, are likely to be less if liberalisation leads to intra-industry rather than inter-industry specialisation.
- Full Text:
- Date Issued: 2003
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