Buckley, Ross P. --- "Beyond the Multilateralized Chiang Mai Initiative: An Asian Monetary Fund" [2011] ELECD 474; in Buckley, P. Ross; Hu, Weixing Richard; Arner, W. Douglas (eds), "East Asian Economic Integration" (Edward Elgar Publishing, 2011)

Book Title: East Asian Economic Integration

Editor(s): Buckley, P. Ross; Hu, Weixing Richard; Arner, W. Douglas

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849808682

Section: Chapter 12

Section Title: Beyond the Multilateralized Chiang Mai Initiative: An Asian Monetary Fund

Author(s): Buckley, Ross P.

Number of pages: 14

Extract:

12. Beyond the Multilateralized
Chiang Mai Initiative: an Asian
monetary fund
Ross P. Buckley

In the preceding chapter, Paul Lejot explained the current state of play of
the Multilateralized Chiang Mai Initiative (CMIM) and perspicaciously
analysed its institutional incompleteness. Perhaps its greatest inadequacy
at the moment is its scale. If the CMIM is to deter contagion and serve to
reassure markets, for all the reasons Lejot identifies, its scale needs, in my
view, to be increased substantially.
So today the CMIM's potential impact is limited. This is reinforced
by the requirement that 80 per cent of the amounts available for drawing
thereunder are not available unless a participant has an IMF program in
place (because the CMIM has but rudimentary surveillance and technical
capacity of its own). Given that the negotiation of IMF programs typically
requires months, this further limits the potential of the credit lines to calm
panics and deter contagion.
However, another perspective is available on the CMIM when one
asks where it might lead. As Lejot has so ably established, the initiative
is incomplete and must be developed further or in time will fail. How it
might be developed, and where it might lead, are the topics of this chapter.
Or, in the words of Lejot, a cautious author, he has built the structure of
the high diving platform and left it to me to dive off.


BACKGROUND AND CONTEXT

Before moving on to those two issues, however, some background
and contextual analysis might assist. ASEAN ...