This monograph offers an analytical perspective on recent debates about the design and reform of the international financial architecture. It is aimed at graduate students taking courses in international finance, policymakers in central banks and similar institutions with some technical background, and at researchers interested in a more organised treatment of the literature on financial crisis management. Existing books in the area often adopt a non-technical approach, concentrating on policy issues without elucidating the underpinnings necessary for a solid understanding of the architecture debate. Alternatively, there is a tendency to focus on a particular type of model in ways that are not readily amenable to the overall policy discussion. We attempt to bridge this gap by drawing together the key theoretical strands and highlighting their relevance for crisis management. The material stems from our own research while at the Bank of England, and from a course of lectures given to Masters students in economics at the Australian National University and the University of Oxford.
We owe a great many thanks to friends and colleagues at the Bank of England for the intellectual environment and support that has extended far beyond the ideas in this monograph. In particular, we are deeply grateful to Andy Haldane, Simon Hall, Simon Hayes, Adrian Penalver, Ashley Taylor, and Paul Tucker for advice and stimulus. Our intellectual debt to Hyun Song Shin deserves special mention—his steadfast encouragement and guidance has been invaluable to our research and to the development of the manuscript. We should also like to thank Patrizia Baudino, Stefan Gerlach, Paul Levine, Warwick McKibbin, Joe Pearlman, Georges Pineau, Kang Yong Tan, and David Vines for helpful comments and suggestions. It has been a pleasure for us to work with the Oxford University Press, and we are grateful to Andrew Schuller for his help throughout this enterprise. Last, but not least, we would like to express our gratitude to the Research School of Pacific and