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...

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...

Despite widespread skepticism concerning the feasibility of building an EWS for the currency crisis, our empirical evidence suggests that the prudent monitoring of the contagion effect as well as key macroeconomic and financial variables is an essential measure to guard against the fragile...

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...

In the wake of the Asian crisis in 1997, policy efforts have been largely devoted to installing various safety devices in the region, e.g. FX reserves and other swap arrangements of CMIM and extra backup with IMF liquidity facilities. Despite comprehensive progresses in regional monetary...

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...