Since the East Asian financial crisis, the need for regional financial cooperation has been greatly emphasized. With integrated markets, financial instability is unlikely to remain within national borders. Indeed, cooperative efforts at both regional and global levels are needed to counter the negative spillovers. In particular, the increased regional economic interaction through both financial and trade channels affords a basis for higher financial cooperation. (The rest is omitted.)

Executive Summary

I. Introduction

II. Conceptual Framework
1. The Rationale for Surveillance and Monitoring
2. Spectrum of Regional Financial Cooperation
3. Monitoring and Early Warning Systems
4. Enforcement Mechanisms: Does Peer Pressure Work?

III. European Experiences
1. Surveillance Mechanisms in the European Payment Union
2. The Bretton Woods System and the Treaty of Rome
3. The Snake System: 1972-1978
4. European Monetary System (EMS): 1979-1992
5. Economic and Monetary Union (EMU): 1993- present
6. Lessons out of the European Experience

IV. IMF's Global Surveillance and Regional Initiatives
1. IMF Surveillance
2. Regional Initiatives

V. Future Challenges
1. Clear Specification of the Objectives
2. Construction of a Surveillance Mechanism
3. The Chiang Mai Initiative and the Surveillance Mechanism
4. Forming a Core Group for Integration
5. Preparing for a Long-Term Vision
6. Building Institutional Arrangements

References