What are the constraints that have stalled EMs efforts to reuse their securities in international financial centers? We discuss the economics of collateral re-use and the present institutional structure in Asian and Latin American countries. Our empirical investigation suggests pledgeability...

The limitations of a dollar-based international financial system (IFS) was at the heart of the forces that precipitated the global financial crisis. While market consolidation gathered momentum amid intensifying cross-border capital flows, the supply of dollars remained subordinate to the...

The current global debacle is first a consequence of an international financial system wobble that triggered a rush into the US dollar from a lack of reserve assets in spite of the rise of Asian economies throughout. Second, capital retraced globally and real estate bubbles burst everywhere...

Korean household debt, which has been trending conspicuously higher since 2005, has become biased towards falling asset prices. Total household debt, which topped KRW900 trillion in 2011, and a back-loaded debt repayment structure portend a fall in collateral when mindful of Korea's economic...

In Korea, growing household debts are threatening to precipitate a balance sheet recession that is hard to address with macroeconomic policies, similar to what transpired in Japan. The household debt-to-GDP ratio climbed to a significantly high level, and the debt structure is vulnerable to both...

It is an urgent issue to change the financial paradigm to foster inclusive growth with far-sighted investment, as the current mechanism loses momentum to spur economic growth and job creation, hobbled by a pursuit of short-term profits and biased capital flows. Based on the new paradigm, a...

The heated debates over the QE tapering and the Fed government shutdown in the US suggest that there will be many obstacles on the path to the global economic recovery. In particular, uncertainties over the timing of the QE tapering might set off a financial market tsunami with turbulent capital...