The introduction of private market discipline to the prevention and resolution of liquidity crises in international financial markets

This paper intends to examine the relationship between the public sector and private market forces in the international financial system. The analysis will attempt to highlight how existing public sector institutions and practices act to pervert the incentive structures of the market, and will call for an alteration to this structure. It will present a considered argument for a policy shift in the international financial realm away from continued excessive reliance on public sector institutions and actors toward the introduction of greater private sector responsibility.; The research project is divided into four main sections. The first chapter will provide some background on the various perspectives attributed to the globalization of finance and will also survey some of the theoretical literature on the subject of financial crises. Chapter Two will then apply the specific case of the Asian crisis of 1997–1998 against the backdrop of the theoretical insights garnered in the opening chapter.; The third chapter will then proceed to explore the role of the public sector in international finance.; Chapter Four will then turn to an examination of some specific initiatives that would attempt to attach greater responsibility to the actions and incentives of the private sector. (Abstract shortened by UMI.)...