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...

This paper discusses the role of state intervention for prevention, containment, and resolution of financial crises based mainly on the Korean experience during the 1997 Asian financial crisis. Crises in emerging market and developing economies tend to be more complicated than those faced by...

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...