Accordingly, the medium-term perspectives of the global monetary system are likely to be determined by two opposing forces (Bordo and James 2006). On the one hand, reflecting the ideas of the more traditional optimum currency area theory, some observers argue that, with emerging markets’ rapid integration, the global economy will face a growing need for a common monetary standard.
•  For the PSBs, a High Level Committee set up by the Government has recommended formation of a non-operating financial holding company (HoldCo) under a special Act of Parliament to act as an investment company for the Government; to hold a major portion of the Government's shareholdings in all PSBs; to raise long-term debt from domestic and international markets to infuse equity into PSBs.