Regional Financial Arrangement in Asia: Beyond CMI Scheme

초록

With growing importance as a possible stepping-stone for the regional financial arrangement, The Chiang Mai Initiative (CMI) is receiving wide attention from diverse circles of academics and policy groups of international institutions (Henning 2002). As it stands, the CMI is an incomplete backup facility, which may not be instrumental in quenching the smoldering vulnerabilities to crisis. However, the CMI has greater potential to become the regional epicenter for safeguarding the financial stability in the region. In fact, the underlying reason for increased attention to CMI lies in the potential of this arrangement to evolve into a full-fledged regional central bank. After some benchmarking against similar arrangements, the paper deals with the possible sets of conditionality associated with the disbursement of funds and the desirable path for institution building centered around the CMI. The outcome of this study would be helpful to envisage the kind of institutional arrangement for the stability in this region.