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 CMI (Chiang Mai Initiative) is designed to provide regional liquidity facility after Asian financial crisis of 1997. The current setting of the CMI is centered on four areas: swap network, regional surveillance, monitoring capital flows, and training personnel. However, since the size of...

Some of the most visible causes for booms and busts in a small, open, financially developing economy include a fragile financial market, exchange rate shocks, and asset price volatility that often result in credit constraints. Because these shocks tend to exaggerate the credit cycles of...

The prevailing international monetary system suffers from a shortage of good collateral for nonbank secured lending. Given that the global financial crisis was mainly triggered by the collapse of the collateral pool for dealer-based credit intermediation, there is a need for reforms to prevent...

The level of household debt had already exceeded the threshold level in 2002 and began to exercise contractionary impact on consumption, jeopardizing the prospects for a sustained recovery. Given that a sizable number of households are now credit constrained, and that the maturity structure of...

One of the most visible causes for booms and busts in emerging economies is financial market friction. Some of the features of a small, open, financially developing economy include a fragile financial market, exchange rate shocks, and asset price volatility that often result in credit...