This paper examines Korea's recent experience with financial liberalization to find empirical evidence for the McKinnon-Shaw hypothesis regarding the effect of financial liberalization on the allocative efficiency of credit. This involves analyzing changes in the variation of average borrowing...

The recent global crisis has reminded everyone of the importance of reforming the international monetary and financial system. The current system is no longer adequate to meet the needs of a complex, integrated world economy. Various proposals, both on the demand and supply sides, have been put...