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Message from ADB's President Contributors Acknowledgements Executive Summary and Recommendations Jeffrey D. Sachs, Masahiro Kawai, Jong-Wha Lee, and Wing Thye Woo Paper Summaries (full papers downloadable) International Monetary Advisory Group Global Financial Crisis, its Impact on India and the Policy Response Nirupam Bajpai To What Extent Should Capital Flows be Regulated? Maria Socorro Gochoco-Bautista The Case for a Further Global Coordinated Fiscal Stimulus Willem Buiter Managing a Multiple Reserve Currency World Barry Eichengreen From the Chiang Mai Initiative to an Asian Monetary Fund Masahiro Kawai An Asian Currency Unit for Asian Monetary Integration Masahiro Kawai The International Monetary System at a Crossroad Felipe Larrain B. Towards a New Global Reserve System Joseph Stiglitz A Realistic Vision of Asian Economic Integration Wing Thye Woo An Asian Monetary Unit? Charles Wyplosz Will US fiscal Deficits Undermine the Role of the Dollar as Global Reserve Currency? If So, Should US Fiscal Policy be geared to Preserving the International Role of the Dollar? Yongding Yu International Monetary Working Group International Reserves and Swap Lines: the Recent Experience Joshua Aizenman, Donghyun Park and Yothin Jinjarak The Future of the Global Reserve System Daniel Gros, Cinzia Alcidi, Anton Brender, and Florence Pisani Renminbi Policy and the Global Currency System Yiping Huang Will the Renminbi Emerge as an International Reserve Currency? Jong-Wha Lee Asia's Sovereign Wealth Funds and Reform of the Global Reserve System Donghyun Park and Andrew Rozanov Reforming International Monetary System Kanhaiya Singh Designing a Regional Surveillance Mechanism for East Asia: Lessons from IMF Surveillance Shinji Takagi

Contributors

International Monetary Advisory Group

Nirupam Bajpai is a Senior Development Advisor at the Earth Institute at Columbia University in New York and Director of the South Asian Program. He is also a member of the United Nations Millennium Project on the Millennium Development Goals. Dr. Bajpai’s research interests include the links of health and development, economic geography, globalization, emerging markets, economic development and growth, global competitiveness, and macroeconomic policies in developing and developed countries.

Maria Socorro Gochoco-Bautista is currently a Senior Economic Advisor at the Economics and Research Department, Asian Development Bank. She is the Bangko Sentral ng Pilipinas Sterling Chair in Monetary Economics at the School of Economics, University of the Philippines and was formerly an Assistant Professor of Economics at the University of Hawaii.

Willem Buiter is currently the Chief Economist of Citigroup, before which he was professor of European Political Economy at the European Institute of the London School of Economics and Political Science. He was a member of the Monetary Policy Committee of the Bank of England (1997-2000) and Chief Economist and Special Adviser to the President at the European Bank for Reconstruction and Development (EBRD) (2000-2005). He has held academic appointments at Princeton University, the University of Bristol, Yale University and the University of Cambridge and has been a consultant to the International Monetary Fund, The World Bank, and a number of national governments and government agencies.

Barry Eichengreen is the George C. Pardee and Helen N. Pardee Professor of Economics and Professor of Political Science at the University of California, Berkeley, where he has taught since 1987. He is a Research Associate of the National Bureau of Economic Research and Research Fellow of the Centre for Economic Policy Research. He was also a Senior Policy Advisor at the International Monetary Fund. A regular monthly columnist for Project Syndicate, he is also the convener of the Bellagio Group of academics and economic officials and chair of the Academic Advisory Committee of the Peterson Institute of International Economics.

Masahiro Kawai is currently the Dean and Chief Executive Officer of the Asian Development Bank Institute (ADBI). He joined ADBI in 2007 after serving as Head of ADB's Office of Regional Economic Integration (OREI) and Special Advisor to the ADB President in charge of regional economic cooperation and integration. He taught at The Johns Hopkins University and Tokyo University. He also worked as Chief Economist for the World Bank's East Asia and the Pacific Region from 1998 to 2001, and as Deputy Vice Minister of Finance for International Affairs of Japan's Ministry of Finance from 2001 to 2003. He has been a consultant at the Board of Governors of the Federal Reserve System and at the International Monetary Fund.

Felipe Larraín B. is currently Minister of Finance, Republic of Chile, and Professor of Economics (on leave), Pontificia Universidad Católica de Chile. He is former Director of the Central America Project at the Harvard Institute for International Development, Harvard University.

Jeffrey D. Sachs is the Director of The Earth Institute at Columbia University, where he is also Quetelet Professor of Sustainable Development, and Professor of Health Policy and Management. He is also Special Advisor to United Nations Secretary-General Ban Ki-moon. From 2002–06, he was Director of the United Nations Millennium Project and Special Advisor to United Nations Secretary-General Kofi Annan on the Millennium Development Goals, the internationally agreed goals to reduce extreme poverty, disease, and hunger by the year 2015. He was named as one of the 100 most influential people in the world by Time Magazine in 2004 and 2005.

Joseph E. Stiglitz is currently University Professor at Columbia University in New York and Chair of Columbia University's Committee on Global Thought. He is also the co-founder and Executive Director of the Initiative for Policy Dialogue at Columbia. In 2001, he was awarded the Nobel Prize in economics for his analyses of markets with asymmetric information, and he was a lead author of the 1995 Report of the Intergovernmental Panel on Climate Change, which shared the 2007 Nobel Peace Prize. He has taught at Princeton, Stanford, MIT and was the Drummond Professor and a fellow of All Souls College, Oxford.

Wing Thye Woo is Professor at University of California, Davis, Yangtze River Scholar at the Central University of Finance and Economics in Beijing, Director of the East Asia Program within The Earth Institute at Columbia University, and Non-resident Senior Fellow at the Brookings Institution. His current research focuses on the economic issues of East Asia (particularly the People's Republic of China, Indonesia, and Malaysia), international financial architecture, comparative economic growth, state enterprise restructuring, fiscal management, and exchange rate economics.

Charles Wyplosz is Professor of International Economics at the Graduate Institute in Geneva where he is Director of the International Centre for Money and Banking Studies. Previously, he has served as Associate Dean for Research and Development at INSEAD and Director of the PhD program in Economics at the Ecole des Hautes Etudes en Science Sociales in Paris. He also has been Director of the International Macroeconomics Program of CEPR, the leading European network of economists. His main research areas include financial crises, European monetary integration, fiscal policy, economic transition and current regional integration in various parts of the world.

Yongding Yu is an Academician with Chinese Academy of Social Sciences (CASS). He was formerly the academic member of the Monetary Policy Committee of the People's Bank of China (PBOC) and member of National Advisory Committee of the 11th Five Years Plan of National Reform and Development Commission (NDRC). He authored, co-authored and edited several books, and published numerous papers and articles on macroeconomics, international finance and other subjects in various academic journals and mediums. His main research interests are macroeconomics and world economics.

International Monetary Working Group

Joshua Aizenman is a Professor of Economics at the University of California at Santa Cruz (UCSC) and a Research Associate for the National Bureau of Economic Research (NBER). Prior to joining the UCSC faculty in 2001, he served as the Champion Professor of International Economics in Dartmouth College. His research covers a range of issues in open economy including commercial and financial policies, crises in emerging markets, foreign direct investment, capital controls, and exchange rate regimes. He has been a consultant to the International Monetary Fund, the World Bank, the Inter-American Development Bank, and the Federal Reserve Bank of San Francisco.

Daniel Gros is currently the Director of the Centre for European Policy Studies (CEPS), based in Brussels, Belgium. His expertise covers monetary and macroeconomic policy, financial market stability, transition to market economies, the enlargement of the European Union, political economy of the Wider Europe, as well as EU-US relations. He previously worked at the International Monetary Fund, in the European and Research Departments, and also as an Economic Advisor to the Directorate General II of the European Commission.

Yiping Huang is a Professor of Economics in the National School of Development/China Center for Economic Research, Peking University. From 2000 to early 2009, he held the position of Managing Director and Head of Asia Pacific Economic and Market Analysis (EMA) of Citigroup, based in Hong Kong. Prior to joining Citigroup, he served as a policy analyst with the Research Center for Rural Development of the State Council in Beijing, General Mills International Professor at the Columbia Business School, New York and Director of the China Economy Program at the Australian National University.

Jong-Wha Lee is Chief Economist of the Asian Development Bank (ADB). He worked as Economist at the International Monetary Fund and taught at Harvard University as a Visiting Professor. He was Head of ADB’s Office of Regional Economic Integration from 2007 to 2009. He is also a Professor at the Economics Department of Korea University (on leave). He has published numerous books and reviewed journal articles in English and Korean, especially on topics relating to human capital, growth, financial crisis, and economic integration. Mr. Lee, a national of the Republic of Korea, obtained his Ph.D. and Master’s degree in Economics from Harvard University, and his Master’s and Bachelor degrees in Economics from Korea University in Seoul.

Donghyun Park is a Principal Economist at the Economics and Research Department of the Asian Development Bank (ADB). Prior to joining ADB, he was a tenured associate professor of economics at the Nanyang Technological University in Singapore. His research focuses on policy-oriented topics relevant for Asia's long-term development, including rebalancing Asia, Asian sovereign wealth funds and Asian pension reform. Dr. Park has published extensively in academic journals, and he currently plays a major role in the production of the Asian Development Outlook, the ADB's flagship annual publication.

Andrew Rozanov is currently the Managing Director, Head of Sovereign Advisory (London) of State Street Corporation. In the past, he worked as a Director of the Equity Capital Markets Group at UBS Investment Bank. He is a CFA (Chartered Financial Analyst) Charterholder, and also holds designations of Financial Risk Manager (FRM) from the Global Association of Risk Professionals and Chartered Alternative Investment Analyst (CAIA) from the CAIA Association.

Kanhaiya Singh is a Senior Fellow at the National Council of Applied Economic Research (NCAER) based in New Delhi, India. Dr. Singh's areas of interest include macroeconomic modeling and analysis, money and finance, applied econometrics input-output analysis, agriculture trade & food security, growth and development economics, among many others. He has held consultancy positions with various organizations including the International Monetary Fund and the Asian Development Bank.

Lei Lei Song is a Senior Economist at the Office of Regional Economic Integration in the Asian Development Bank (ADB). He works in the area of regional economic and financial monitoring, and specializes in applied macroeconomics including macroeconomic modeling, unemployment and inflation, and international economics. He joined ADB from the Melbourne Institute of Applied Economic and Social Research where he was a Research Fellow. He was also a Visiting Academic at the Australian Treasury and a Research Fellow at the China Development Institute in Shenzhen.

Shinji Takagi is a full-time Professor of Economics in the Graduate School of Economics, Osaka University, Japan. He earlier served as an Advisor, Independent Evaluation Office of the International Monetary Fund, where he also worked as an economist several years prior. In addition, he held the position of Senior Economist of the Institute of Fiscal and Monetary Policy under the Japanese Ministry of Finance.