Alexandra Zeitz (Global Economic Governance Programme, University of Oxford)
Speaker: Professor Jennifer Corbett, Australian National University
Chair: Robin McConnachie, Oxford Analytica
Though we know financial integration is deepening, we still know woefully little about how to measure or observe financial integration. In a seminar at PEFM in June, Professor Jennifer Corbett introduced a new research project that uses network analysis to try to address this gap and reveal patterns of financial interconnection.
The motivation for Corbett’s research is clear, given her focus on the East Asian economy and financial system. In the aftermath of the 1997 Asian financial crisis, many regional analysts concluded that the risks had stemmed from dependence on foreign intermediation. The policy prescription was thus to increase regional financial integration, especially in local currencies, with deeper, more tightly integrated markets seen as a driver of stability.
But, as Corbett pointed out in her presentation, the repercussions of tighter integration remain understudied. In part, this is because existing models of financial integration remain simplistic.