The consequent shortage of safe assets globally, however, is a significant impediment to the functioning of the global financial system. How can we, as policy-makers, address this recurrent problem? First, emerging market economies should develop an efficient financial system and sound legal, regulatory and macroeconomic policy frameworks in order to create safe, globally accepted financial assets.
Indeed, with the growing interdependence of the world’s economies, the need for such statistics - which reflects in part the underlying movement towards greater liberalization and integration of markets - has increased over time.