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 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...