Mashiro Kawai and Eswar Prasad (eds.). Financial Market Regulation and Reforms in Emerging Markets.

Akram, Adnan

Mashiro Kawai and Eswar Prasad (eds.). Financial Market Regulation and Reforms in Emerging Markets. Asian Development Bank Institute. Washington D.C.: Tokyo and Brookings Institution Press. 2011. xiii+423 pages. $34.95.

The global financial crisis of 2008 and the resulting economic meltdown has renewed interest in understanding how financial markets work across the globe, and identifying their weaknesses--Financial Market Regulation and Reforms in Emerging Markets is an opportune contribution. Edited by Masahiro Kawai and Eswar Prasad, it is a collection of essays that critically analyse the reasons for the financial crisis of 2007-09 and advocates restructuring the financial sector to strengthen the financial systems of developed economies and emerging markets. The authors argue that financial systems in emerging markets are still in their infancy. Emerging economies (India, Indonesia, and the People's Republic of China) need to assess and understand the reasons for financial crises in order to make their own financial systems more efficient and more flexible--a condition necessary given that these economies pursue policies of high and sustainable economic growth. Reforms should be carried out in a way as to make their financial systems more resilient to domestic and external shocks. The book is divided into six parts, which cover new perspectives in financial regulation, regulatory frameworks for emerging markets, financial market development and stability, improving financial access in emerging markets, and cross-border regulation.