How do we prevent future financial crisis in emerging markets?

The discussion with Professor Anton Cornick from John Hopkins University explores the challenges and importance of regulating capital flows in a globalized world. It examines the role of the Federal Reserve's policies on emerging economies and the potential for international cooperation to mitigate negative spillovers. The conversation also delves into the complexities of capital controls within trade agreements and the necessity for international coordination to address monopolistic interventions and economic stability.

What is the main challenge in regulating capital flows in a globalized world?

• Increased difficulty and importance

• Overregulation of domestic markets

• Lack of financial institutions

• Absence of capital account liberalization

What should the Federal Reserve focus on according to Professor Cornick?

• Emerging market economies

• Global economic stability

• Domestic mandate

• International mandates

How can US regulators assist emerging economies according to the discussion?

• By imposing strict capital controls

• By increasing investments in emerging markets

• By reducing investments in overheating economies

• By focusing on domestic policies only

What is a significant legal challenge for countries wanting to implement capital controls?

• Insufficient domestic policies

• Clauses in trade agreements

• Lack of international support

• Overreliance on foreign investments

In what situation have global policymakers advocated for capital controls?

• In periods of low inflation

• During economic booms

• When trade agreements are signed

• In full-blown financial crises

What is one of the problem areas that require international cooperation?

• Currency devaluation

• Domestic financial stability

• Trade surplus management

• Monopolistic interventions

What role do classic trade agreements play in the world economy?

• They encourage currency devaluation

• They focus on domestic policies

• They prevent monopolistic interventions

• They restrict capital flows