Madhusudan S. Mohanty

The Future of Public Debt: Prospects and Implications

Since the start of the financial crisis, industrial country public debt levels have increased dramatically. And they are set to continue rising for the foreseeable future. A number of countries face the prospect of large and rising future costs related to the ageing of their populations. In this paper, we examine what current fiscal policy and expected future age-related spending imply for the path of debt/GDP ratios over the next several decades. Our projections of public debt ratios lead us to conclude that the path pursued by fiscal authorities in a number of industrial countries is unsustainable. Drastic measures are necessary to check the rapid growth of current and future liabilities of governments and reduce their adverse consequences for long-term growth and monetary stability.

Financial Intermediation and Monetary Policy Transmission in EMEs: What Has Changed Post-2008 Crisis?

In contrast to the benign neglect of the financial system in traditional monetary models, there has been growing evidence in recent years that the size and the structure of financial intermediation play a critical role in the transmission of monetary policy. This paper reviews the implications of three key post-2008 crisis developments in financial intermediation - the role of banks, the globalisation of debt markets and the sustained decline in global long-term interest rates - for various transmission channels of monetary policy in EMEs. The paper argues that the globalisation of debt markets means that monetary policy can no longer be conducted through the short-term interest rate alone. This raises questions about the appropriate instruments to be used for economic stabilisation in this new environment.

Capital market reform in Asia : towards developed and integrated markets in times of change

Preface Introduction I: DEVELOPMENT OF CAPITAL MARKETS IN ASIA Banks and Financial Intermediation in Emerging Asia: Reforms and New Risks - M S Mohanty and Philip Turner How to Develop Capital Markets in East Asia - Andrew Sheng II: ISSUES OF CAPITAL MARKET REFORM Capital Market Reform in Malaysia - Zarinah Anwar Non-tradable Share Reform in the Peoples Republic of China - Xinghai Fang Trends and Best Practices in Shaping OECD Public Debt Management and Government Securities Markets - Hans J Blommestein Ten Years After: Implications of the Current Financial Market Turmoil - Atchana Waiquamdee Facing the North-Atlantic Financial Crisis: A European Perspective - Hans-Helmut Kotz III: EMERGING RISKS AND CHALLENGES OF REGULATION, SUPERVISION, AND CORPORATE GOVERNANCE Corporate Governance: An IOSCO Perspective - Jeremy Cooper Governance of and by Institutional Investors in the OECD Area - Stephen Lumpkin Restoring Trust in Financial Markets - Stephen Grenville Financial Sector Supervision: What We Have Learned So Far - Stephen Grenville Investor Protection in the Asia Pacific: Survey Findings of the Asia-Pacific Regional Committee - Lynn Hew and Mohammad Nizam Ismail The Elephant in the Room: The Need to Deal with What Banks Do - Adrian Blundell-Wignall, Gert Wehinger, and Patrick Slovik IV: REGIONAL CO-OPERATION AND INTEGRATION OF CAPITAL MARKETS IN ASIA A New Financial Market Structure for East Asia: How to Promote Regional Financial Market Integration - Gordon de Brouwer and Jenny Corbett The Integration of Capital Markets in the Asian Region: Some Practical Steps Forward - Gordon de Brouwer and Lorraine Allan The Asian Bond Fund-2 and Regional Initiatives - Thirachai Phuvanatnaranubala The Role of Capital Markets in Infrastructure Financing - Worapot Manupipatpong Index