Below we give updates of recent activities from our projects onpolitical economy and data and on financial crises and from our China-Asia-Pacific program


Professor Thomas Willett and alum Penny Angkinand have edited a two part special issue of the Journal of Financial Economic Policy on international comparisons of financial policies and their interactions. The papers in the volume give students, faculty, and researchers in government and think tanks introductions to the many new data sets that recently have become available for use in quantitative studies of the effects of domestic and international financial policies. Many of the major econometric techniques used to study these effects are also surveyed.   

These data sets give detailed measures of various types of financial policies and their institutional environments such as more detailed measures of financial liberalization and the quality of financial supervision and methods of estimating their influences on   economic developments such as financial crises and aspects of international interdependence such as the recent debates about international contagion.

These papers give students , faculty, and researchers in Government and think tanks introductions to the many new data sets that recently become available of financial policies and their institutional environments such as more detailed measures of financial liberalization and the quality of financial supervision and methods of estimating their influences on   economic developments such as financial crises and aspects of international interdependence such as the recent debates about international contagion.

Besides summarizing the content of these data sets and indicating where they are available, their quality and that of the major approaches to quantitative estimation are critically evaluated and it is argued that the most appropriate data to use will often vary by the issue being studied. 

The quality of these data sets and approaches to quantitative measurements are critically evaluated and it is argued that the most appropriate data to use will often vary by the issue being studied. As would be expected from a SPE project the importance of political economy factors in influencing these relationships is stressed.

This special issue is part of the Claremont Institute for Economic Policy Studies ongoing project on political economy and financial data and measurement. It complements the recent book on political economy data edited by alum King Banaian which includes contributions from a number of SPE faculty, students and alums. (See Banaian, K. and Roberts, B. (2008), The Design and Use of Political Economy Indicators: Challenges of Definition, Aggregation, and Application, Palgrave MacMillan: New York, NY).

Preliminary versions of a number of the papers were presented at sessions of the Annual Meetings of the Western Economics Association in San Diego in July.

A number of alums participated as well as current students and faculty.

As with the earlier volume the special issue will contain contributions from several Claremont faculty and students as well as a number of alums. A full list of contributors will be on the CIEPS web site.


With the spread of the global financial crisis and the subsequent eurozone crisis we have been putting considerable effort into our crisis research and policy analysis. The spread of the global crisis was analyzed in a 2010 publication by Professor Willett with alum Priscilla Liang and then PhD student and now recent graduate Nan Zhang in the Journal of International Commerce, Economics and Policy edited by alum Ramkishen Rajan.

This trio also recently published an analysis of the effects of the crisis on growth in emerging market economies and the implication for the debate about whether these economies have effectively decoupled from economic growth in the advanced economies.

Professor Willett's discussion of the implications of the crisis for financial economics was also published in 2010 in the Indian Growth and Development Review co edited by alum Chetan Ghate. His paper on the role of defective mental models in the generation of the crisis, which began with a presentation in Taiwan organized by alum Eric Chiu was recently accepted for publication in the Journal of Financial Economic Policy.

We have also been providing analysis of the euro crisis. Before the crisis broke out Professor Willett with CIEPS associates Clas Wihlborg and Nan Zhang began to study the adjustment process within the euro zone and discovered that it was working quite poorly. A revision of this analysis was recently published under the title.” The Euro Crisis: It isn't just fiscal". A broader paper on European crises by Professors Willett and Wihlborg is in press for the Encyclopedia of Financial Globalization.

Professor Willett has been updating this analysis for recent presentations at the SPE Tuesday lunch series and in talks at Duke, University of North Carolina, University of Wisconsin at Milwaukee and at Whitewater, where alum Nancy Tao teaches, at National Chung Hsing University, where Eric Chiu teaches, National Sun-Yat Sen University and at an international conference on sovereign debt issues organized by the Federal Reserve Bank of Atlanta.

A number of dissertations are underway on various aspects of the recent crises as are several new studies by Research Associates of CIEPS including several alums.


Angkinend, A., Wihlborg , C. and Willett, T.D. (2012), "Market Discipline for Financial Institutions and Markets for Information” in James Barth et al. (Eds), Research Handbook on Intertnational Banking and Governance, Edward Elgar, (forthcoming)

Kim, J.S., Li, J., Rajan, R. Sula O. and Willett, T.D. (2004), “Reserve Adequacy in Asia”, Korea Institute of International Economic Policy Conference proceedings, edited by Oh, Y., Willett, T.D. and Yoon, D.R.

Willett, T.D., Oh, Y. and Yoon, D.R. (2004), Monetary and Exchange Rate Arrangements in East Asia, Korea Institute for International Economic Policy

Willett, T.D. and Kim, Y. (2006), “Korea's Post-crisis Exchange Rate Policy”, Korea’s Economy, Korea Economic Institute, pp. 5-15

Willett, T.D., Auerbach, N., Kim, K., Kim, Y.M., Ouyang, A., Permpoon, O., Sompornserm, T., Srisorn, L. and Sula, O. (2009), The Global Financial Crisis and Korea’s International Financial Policies,Korean Economic Institute

Willett, T.D., Liang, P. and Zhang, N. (2009), "The Slow Spread of the Global Financial Crisis”, Journal of International Commerce, Economics, and Policy Vol. 1, No.1, 2010: pp. 33-58       

Willett, T.D. (2010), “Some Lessons for Economists from the Financial Crisis.” Indian Growth and Development Review Vol. 3, No. 2, 2010: pp. 186-208.

Willett, T.D., Wihlborg , C. and Zhang, N. (2009), “The Euro Debt Crisis: It isn’t just fiscal”, World Economics, Vol. 11, No.4, October-December 2010.

Willett T.D. and Wihlborg, C., "Varieties of European Crises" in Gerald Caprio ed The Encyclopedia of Financial Globalization, (forthcoming).

Willett, T.D., Liang, P. and Zhang, N. (2012), “Global Contagion and the Decoupling Debate” in Cheung, Y.W., Kakkar, V., and Ma, G. (Eds), The Evolving Role of Asia in Global Finance. Emerald Group Publishing, (forthcoming).


In June 2010 we cosponsored with the Asian Development Bank Institute and George Mason University an international conference in Washington DC on current global economic policy issues. Professor Willett presented a paper coauthored with PhD student Lalana Srisorn on implications of the global financial crisis for Asia.

Professor Willett delivered an earlier version of this paper as a keynote speech at an international conference in Beijing in late 2010. While there he also lectured at the Central University of Finance and Economics where he was hosted by alums Jie Li and Alice Ouyang, both of whom have been recently promoted to Associate Professor.

In July Professor Richard Burdekin organized a session on China at the annual meetings of the Western Economics Association in San Diego. Presenters included four alums, Jie Li, Linyue Li, Alice Ouyang, and Nancy Tao.

In August we cosponsored a major international conference held in Claremont on Korea in the World Economy. Professors Sven Arndt and Thomas Willett were on the organizing committee. In addition to Claremont faculty six current and former Claremont students served as discussants and acquitted themselves quite well.

In November we have a seminar in Claremont given by Ming Lu of Fudan University and our visiting scholar from the Central Univerity of Finance and Economics in Beijing, Fengjuan Xiao arrived.

Professors Graham Bird and Thomas Willett completed a paper on the danger of currency wars between the US and Asia which has been published in World Economics.

Senior Fellow John Rutledge has continued to make frequent trips to China where he lectures at the Chinese Academy of Science and often meets with senior economic officials. He is offering a new course for us this semester on Complex & Evolutionary Economics & Finance.

A paper on the implications of optimum currency area analysis for Asian monetary cooperation was published in the Singapore Economic Review in 2010. It was coauthored by Professor Willett, alum Orawon Permpoon who is now with the Thai Foreign Ministry and current PhD student Lalana Srisorn.

In 2009 Professor Willett published a study on the global financial crisis and Korea's international financial policies which included contributions from current and former Claremont students, Kenneth Kim, Yoonmin Kim, Alice Ouyang, Orawan Permpoon, Thana Sompornserm, Lalana Srisorn, and Ozan Sula.

Richard Burdekin is editing a special issue on China after the Global Financial Crisis for Economic Research International. It includes papers by Burdekin and alum Nancy Tao on Bank Lending, Inflation, and China’s Stock Market and alums Linyue Li and Nan Zhang and Professor Willett on the effects of the global financial crisis on China.






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