Notably, due to the growing interconnectedness between countries, capital flows have been acting as a transmission channel for the worldwide spread of what was originally a national or regional crisis. In this regard, we need a global jurisdiction which can maintain stable global liquidity and monitor cross-border transmission.
It is very encouraging that regional cooperation organizations such as SEACEN, ASEAN+3 and EMEAP have recently stepped up their cooperation in promoting regional financial market development and stability, by drawing up joint response plans, such as the launch of the CMIM, to tackle such financial crises, and by seeking ways to foster regional financial market development and improve macroprudential frameworks.