1、<p>　　The Role of Emerging Economics in the future International Financial System</p><p>　　bstract. The global financial crisis means that international monetary and financial system call for an adequat

2、e response. However， the causes of the crisis of global imbalances remains unresolved， it will continue to threaten exchange rate stability， international reserve assets safety， and the transformation of economic growth

3、model for China and the other emerging countries. Meanwhile， it still has an adverse impact on the sustainable recovery for the United States and Europe and the other We</p><p>　　Key words： Financial crisis；

4、 International financial system； Emerging Economics </p><p>　　Introduction </p><p>　　In 2008， two important event： one is the Asian financial crisis 10 anniversary， discuss how to reform the int

5、ernational financial architecture； The other one is the most serious outbreak of the global credit crisis. </p><p>　　The impact of the Asian financial crisis is a country in "the epicenter of the financ

6、ial crisis" and more extensive international economic and financial system. A result is a about how to adapt to the emerging economies' policy and strengthening the international financial market. Contribute to

7、literature to the reform of the international financial architecture quick sorting into two camps. The first Suggestions and fundamentally reshape international system. Second， less ambitious， stressed th</p><

8、p>　　Where is the global finance heading？ </p><p>　　A stable， effective international financial system is an important guarantee for the healthy development of the world economy. The international financia

9、l system is glue， and sustains the economy of the country together. Its main function is to lend foreign exchange market order and stability， encourage eliminate the balance of international payments； provide the interna

10、tional credit destructive impact event. Countries it is difficult to get effective development trade and foreign loans without </p><p>　　The role of emerging economics in the future financial system </p&g

11、t;<p>　　What is the problem and what reform should do about it？ </p><p>　　According to the most basic macroeconomic identity， the difference between domestic savings and investment equal to balance of

12、 international payments. So， in a broader sense， if we defined the savings as the domestic savings， balance of payments current account surplus and foreign reserves， then the imbalance of international payments inherent

13、is the structural imbalance in global savings. Since 1980s， the global savings imbalance has been an objective phenomenon， especially， since the 1997-98 E</p><p>　　From the perspective of individual countrie

14、s， China’s savings rate in 2008 is as high as 51.3%，the highest in history； and the United States was only 12.6%， which also was the lowest in the theory. Theoretically， the savings rate is related to culture， family and

15、 population structure， economic growth and income levels， etc. although， there is no common sense on the determinants of global savings imbalance and the academic research does not provide a convincing explanation， but t

16、he global financi</p><p>　　Fig 1.global saving rates imbalance </p><p>　　The increasing share of emerging markets in the global economy For now， Asian countries look to be weathering the current

17、 storm. In part， their successful responses reflect the lessons learned during the Asian financial crisis of the 1990s， including the need for sound macroeconomic fundamentals. </p><p>　　Since the beginning

18、of this century， Asia accounted for more than a third of the world economic growth， improve its share of global gross domestic product （GDP） from 28% to 32%. To some extent， the rise of Asia economy since World War II ha

19、s been one of the great success stories of economic development. Japan into an economic powerhouse followed by the Asian tigers fast to ascend， and then by the China in a prominent place on the world economic stage posit

20、ion. 　　Fig 2.the source of global growt</p><p>　　Although the current financial crisis and world economic recession has made a temporary obstacles for emerging markets， in the long run， the shift of world&#

21、39;s economic center from the developed countries to emerging market countries， will be irreversible. Many authority studies have shown that in the world's total economic output share， compared to developed countries

22、， the proportion of emerging market economies will be a steady increase； and in the future emerging markets will still provide the </p><p>　　Fig 3.share of global GDP 2002 </p><p>　　It is estima

23、ted that by 2020 the BRICs the total share of in the global economy will increase to 27%， while the U.S. will drop to 17%. Therefore， the structural changes in the global economy ， means the increasing influence of emerg

24、ing markets in future global policy-making process. And the emerging markets will become important new players， not spectators， which also will make global decision-making mechanisms become more diverse. </p><

25、p>　　In short， over the past few decades， as well as a longer period of time in the future， China and other emerging economies would be the engine of world economic growth， then we hope that China can share the "d

26、rivers" of the seat， which means that forward to future international financial system， the world can listen to the voice of the emerging markets. </p><p>　　Policy adjustment： economic development model

27、 “re-balance” A lesson of we should take form this global crisis： the export-led growth model， backed up with large current account surpluses and mounting foreign exchange reserves is unsustainable. Too great a reliance

28、on external demand can also pose problems. </p><p>　　Because strong export markets helped Asia recover from that crisis， and because many countries in the region were badly hurt by sharp reversals in capital

29、 flows， the crisis strengthened Asia's commitment to export-led growth， backed up with large current account surpluses and mounting foreign exchange reserves. In many respects， that model has served Asia well， contri

30、buting to the rapid growth rates in the region over the past decade. In fact， it bears repeating that evidence from the world over</p><p>　　As the global economy recovers and trade volumes rebound， however，

31、global imbalances may reassert themselves. As national leaders have emphasized in recent meetings of the G-20， policymakers around the world must guard against such an outcome. We understand， at least in principle， how t

32、o do this. The United States must increase its national saving rate. Although we should deploy， as best we can， tools to increase private saving， the most effective way to accomplish this goal is by establishing a</p&

33、gt;<p>　　The diversification of international reserve system One crucial lesson from this crisis is that it is risky for central bank to hold most of their international reserves on dollar. 　　Possible policy resp

34、onses include： 1） agreement on a new international monetary system； 2） enhancing the role of the IMF’s Special Drawing Rights； 3） diversification of national currencies. The seeming lack of political willingness to pursu

35、e a new monetary system indicates that other issues will most likely have pr</p><p>　　The adoption of a broad multi-currency regime rests on two fundamental assumptions： 1） that use of several currencies pro

36、vides greater stability and more liquidity for the international monetary system， as official asset holdings will be more balanced across currencies； and 2） that positive externality effects of using few currencies can b

37、e overcome amid technological change and low transaction costs. While the possibility of substituting the dollar is very limited in the short to medium term， t</p><p>　　Emerging markets are set to represent

38、about half of world GDP at market prices within the next 10 years and are the largest holder of international reserves. Yet their currencies are not being used internationally. This imbalance is between economic and poli

39、tical and monetary proliferation risks being inherently unstable. Emerging markets will therefore naturally be at the heart of any reform effort. They have also realized， as most pointedly told by the recent history of t

40、he euro， that any inte</p><p>　　Central banks today can be both catalyst and driver for the adoption of a broad multi-currency regime. The large accumulation of international foreign exchange reserves has be

41、stowed central banks with sufficient resources to guide and affect market behavior. Key currency attributes are also endogenous to central bank reserve holdings and reserve allocation can be a channel for currency use to

42、 result in a virtuous circle of greater stability and currency use， that is， U.S. treasury securities are</p><p>　　For many， the central bank， the vital concept in emerging market currencies of investment st

43、ill heresy. However， the crisis to the fore， brought the most basic concept needs recalibrated risk， that is it also conservative and prudent investment in a very narrow set of assets those assets are less and less of th

44、e representative of the international economy behind？ Or will be different， the current widespread international reserves to maintain consistent distribution and the central bank of the mo</p><p>　　The crisi

45、s needs an international monetary system response. Global imbalances， many have related the underlying causes of the crisis and reduce is not solved. This will have an impact， especially $exchange rate will affect the mo

46、st important emerging markets. So， the international monetary reform should not be seen as a plug-in， but as an integral element to realize the sustainable to resolve the crisis. </p><p>　　However， the pace

47、of international monetary reform will depend largely on emerging markets. Many emerging market still don't provide conditions conducive to allow greater international use of their currency. Therefore， the response is

48、 crucial reform will establish credibility his intention， and may define momentum reform debate forward. </p><p>　　The central bank today plays an important role， build more symmetrical in the international

49、economy by assuming more diversified international reserves portfolio. Will be the most clear sign， but policy makers would like to support their stated policy intentions. This may be needed a new field of vision， the in

50、ternational economic management， that is， more and more diverse world will probably be better monetary system and pluralism. It may not be very clear that a new system will look like， but </p><p>　　The 2008

51、crisis broke the hypothesis that clear. It reveals the lack of transparency in the high-income countries affected. It skewers the deficiency of the supervision and management and failure of macroeconomic policy and regul

52、atory policy coordination， omnipresent regulatory arbitrage， and motivation relevant question， compensation practices in the financial services industry. It dissolves the prevailing practice in the high-income countries

53、influence is an appropriate standards of emerging m</p><p>　　References </p><p>　　[1] Anderson， Jon. 2009， “The Asian Liquidity Primer”， UBS Investment Research. March 29. </p><p>　

54、　[2] Barry Eichengreen （2008）， “thirteen questions on the sub prime crisis”， unpublished manuscript. University of California， Berkeley. </p><p>　　[3] Barry Eichengreen （2010）， “Global imbalance and the less

55、ons of Britton woods”， http：//www.nber.org/papers/w10497 </p><p>　　[4] Barry Eichengreen （2009）， “From the Asian crisis to the global credit crisis： reforming the international financial architecture redux”，

56、 International Economics and Economic Policy， Springer， vol. 6（1）， pages 1-22， June </p><p>　　[5] Barry Eichengreen， Yeongseop Rhee and Hui Tong， （2007）， “China and the Exports of Other Asian Countries”， Rev