Finance and the International Economy: v. 5

These 11 essays are the prize-winning entrants in the fifth Essay Competition run by the AMEX Bank Review. The essays are divided into three groups. The first focuses on trade bloc issues, asking whether a yen bloc is emerging, whether trade blocs are to be welcomed or discouraged and whether growth maximization by Japanese firms offers some explanation for their international competitiveness. The second group focuses on the economic issues associated with the integration of Eastern Europe and the international economy. The opening essay in this group examines the impact of the integration of east Germany into the Federal Republic and the impact on the Deutschmark. Further papers examine the choice of exchange rate policy, inflation issues, and the relationship between the European Community and Eastern European nations. The final group covers a series of different subjects, notably on information flows and the bank-corporate relationship, the impact of information technology on international financial markets, the need for sequencing in relaxing capital controls in developing economies and a lively discussion of the competing theories of asset market pricing behaviour. While the essays vary in style, from empirical analysis to more theoretical work, each essay draws out clear conclusions for policy-makers or for the markets.Table of ContentPart 1 Trade blocks and competitiveness: is a yen bloc forming in Pacific Asia?, Jeffrey A. Frankel; emerging regional arrangements - building blocks or stumbling blocks?, Robert Z. Lawrence; profit maximization and international competition, Alan S. Blinder. Part 2 Eastern Europe - integration and economic reform: Einigkeit macht stark - the deutsche Mark also?, Daniel Gros and Alfred Steinherr; exchange rate management when there are failures of corporate control - dilemmas in Eastern Europe, Paul B. Seabright; integrating Eastern Europe into a wider Europe, James M.C. Rollo; financial adaptation and the optimal timing of liberalization in Eastern Europe, Frederico A. Sturzenegger. Part 3 Banking - coroporate relationships: corporate control and financial intermediation, Joseph R. Bisignano; information technology - trade in financial services and evolving regulatory priorities, Bernard M. Hoekman and Pierre Sauve; on liberalizing the capital account, John Williamson. Part 4 Competing theories of asset market pricing: money is funny, or why finance is too complex for physics, John L. Casti.