Asian Regional Financial Arrangements and the IMF

European debt crises and the expansion of international financial arrangements during the global financial crisis have dramatically elevated the importance of cooperation between regional institutions and the International Monetary Fund. While the case for coordination between regional and multilateral institutions is generally accepted, the need to organize it on an ex ante basis is not fully appreciated. The relatively successful cooperation among the European Commission, European Central Bank and IMF on recent financial rescues is not likely to be easily replicated in joint programs for countries in other regions, and the costs of coordination failure could be very large...