In an integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing a global crisis. What kind of measures would you propose to prevent the recurrence of an Asia-type crisis?

There are several measures that can be taken to avoid an Asia-type crisis.

One measure is to strenghten the role of global institutions like the IMF and the World Bank, so that they can monitor the financial situations of the countries around the world, and present reliable data.

Another measure is to demand the same from corporations, both in the financial sector, and in the real sector. The development of international financial standards has been a significant step in this direction.

A third measure would be to demand minimum leverage and other financial indicators from the companies that engange in the global financial markets.

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