in Japanese


Ministry of Education Aid for Science Research on Priority Area


Theme: The Construction of Comparative Theories and Data Bases
in International Finance


Group Members

Shin-ichi Fukuda (Group Leader, University of Tokyo)
Shinji Takagi (Osaka University and IMF)
Eiji Ogawa (Hitotsubashi University)

Cooperative Members Outside Japan

Kiminori Matsuyama (Northwestern University)
Takeo Hoshi (University of California, San Diego)
Kar-yiu Wong (Washington University)

Objectives and Goal

This group is using funding from the research initiative: "Empirical Analysis and Design of Economic Systems" to develop new theories of international finance and to examine their empirical relevancy using international data.  Ultimately, it is expected that these results will be used to identify the characteristics of a successful financial system in the current international finance environment.  The Asian crisis that occurred in 1997 has produced a large number of papers that offer prescriptions for reducing the risks of future crises.  We have, however, not yet reached a definitive conclusion on what system is best for East Asian economies.  Some researchers have constructed excellent theoretical models.  But these models are usually too abstract to be applied to actual policy making.  In contrast, other researchers have performed excellent empirical studies using rich data sets.  The theoretical underpinnings of these analyses though are sometimes rather vague. Relatively little research to date has sought to reconcile the predictions of theoretical models with the empirical facts using unified analytical framework.

 One goal of our group is to promote research that combines theory with measurement. Two areas of current interest are exchange rates and international capital flows. With respect to exchange rates we are developing and applying state of the art theories of exchange rate movements to answer the policy question of what is a desirable exchange rate arrangement in East Asia. We are also investigating what the nature and pattern of current international capital flows to East Asia and current exchange rate regimes in this region imply about the need for rules that restrict international capital flows. From 2003 to 2004, the group will focus on the analysis of "a desirable exchange rate system in East Asia."  This group stresses the importance of joint research between domestic and foreign scholars.  We have already organized three international conferences that provide a forum where theoretical and empirical economists can present their research and exchange ideas. Our most recent conference was held at Kangwon National University in Korea on December 9-10 2003. The title of this conference was "The Asian Crisis V: New Challenges and Opportunities for the Post-Crisis." At this conference papers were presented that examined the causes and effects of the Asian crisis and the recent recovery of affected countries. We plan to hold another international conference in Tokyo with the University of Washington on August 2004.


Conferences sponsored by this project: <--Please click here.

(1) Asian Crisis III: The Crisis and the Recovery

Theme: the causes and effects of the crisis, and the recent recovery of these countries
Place: Sanjo Kaikan, University of Tokyo, Tokyo, Japan
Date: July17th (Tuesday) and 18th (Wednesday) in 2001

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(2) Asian Crisis W: Road to Recovery

Place: Taiwan National University, Taipei, Taiwan
Date: July 24-25 in 2002


(3) Asian Crisis X: New Challenges and Opportunities for the Post-Crisis

Place: Kangwon National University, Chuncheon, Korea
Date: December 9-10 in 2003

(4) Asian Crisis Y : Financial Crisis and Economic Growth

Place: University of Tokyo
Date: August 30-31 in 2004

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2004.4.8 renewal