Introduction Since the Asian financial crisis of 1997-98, emerging and developing economies (EMDEs) in Asia have strengthened their resilience to external financial shocks by upgrading macroeconomic management frameworks, reforming financial sectors, accumulating FX reserves, making exchange rates more flexible, avoiding excessive short-term dollar inflows, and introducing a regional financial safety net and surveillance process. As […]
Author Archives: Donghyun Park
Macroeconomics and Monetary Policy
Rethinking the Dollar: The International Monetary System at a Crossroads
26
Feb
Feb
This blog is based on a presentation made by Jeffrey Frankel at the SEACEN Policy Summit 2026: The Future of the International Monetary System and the Role of Asia (5– 6February 2026). The Dollar’s Legacy and Its “Exorbitant Privilege” The U.S. dollar supplanted the British pound as the dominant international currency in the 20th century. […]
Financial Stability, Macroeconomics and Monetary Policy
Capital Flow Management during the Taper Tantrum
20
Feb
Feb
Emerging market economies often face acute challenges in the wake of sudden bouts of market volatility triggered by sharp capital outflows. Managing such turbulence—particularly when macroeconomic fundamentals offer limited support—requires a calibrated mix of conventional and unconventional policy responses. There is rarely a textbook solution to crises of this nature; central banks must deploy all available instruments with agility, while maintaining credible and consistent communication to anchor expectations.