Macroeconomic and Prudential Controls on International Financial Markets

This chapter provides a brief review of the author’s involvement in macroeconomic and prudential controls on international banking and financial markets since the early 1970s, and international deliberations on these issues at OECD meetings as well as the BIS Committee on Banking Regulation and Supervision where the author was a Bank of Japan representative for five years. This chapter also provides the author’s views on the implications of globalised and deregulated financial markets for prudential polices, and the causes and implications of the East Asian financial crisis. It furthermore provides the author’s view on the role of international capital controls.