Publication

This paper argues that in the aftermath of the global economic crisis, the relatively centralized international monetary architecture set up at the Bretton Woods conference is evolving towards a more decentralized multi-layered global financial safety net (GFSN). The most significant factor explaining this evolution is the increased incidence of capital account crisis subsequent to the deepening of financial globalization. The author argues that the evolving GFSN has increased the flexibility of the international monetary architecture and enhanced the voice of emerging markets on global economic governance to some extent. However, more needs to be done. Also there is the need for institutional and other reforms to prevent and manage a systemic crisis in the future and to protect innocent bystanders. What is the role of Asia and what can Asia do?