The 2008 global financial crisis undermined the market confidence of the US financial market, challenging the current IMS which heavily relies on the USD. In light of this, this paper suggests that some changes in the IMS are possible by promoting the use of the RMB at the regional level. An...

We use the approach used by Lee et al. (IMF WP/13/83) to estimate the optimal levels of investment for G20 Countries (Panel first-differenced GMM). We found that the G20 countries as a whole are investing 0.09 percentage point of global GDP above the desired level. More specifically, the...

Emerging economies are struggling to keep their growth momentum alive in the face of waning global demand. Yet, they are partly handicapped by the loss of monetary policy independence and greater exposure to potential capital reversal. Against this background, a comprehensive review of all their...

Two Koreas have been apart for 70 years under very different political regimes and economic systems. A preferable approach for socially stable path of unification would be to allow both Koreas to remain independent states for about 20 years after an agreement is reached on gradual integration....

Among multitude of issues, global imbalance has attracted more attention than may be warranted because it is perceived to be policy induced and constrain global growth, or a zero sum game in the sense of growing at another countries' expense. Yet many of those with a current account surplus face...

There is partial consensus that the size of money — or liquidity — in China should be large reflecting the high savings rate. Even so, with a sense of a liquidity overhang from the recent monetary expansion, many caution against expanding liquidity further lest it translate into a property...

Despite a few landmark achievements such as the Chiang Mai Initiative, financial deepening and monetary integration in East Asia has been slow. Meanwhile, proliferation of FTAs and China's successful accession to the WTO have enabled faster progress on trade integration among the East Asian...