About Tarisa WatanagaseTarisa Watanagase had a long career at the Bank of Thailand and was Governor from 2006 to 2010. She was instrumental in the 1997 Thai crisis resolution and the ensuing supervisory and financial sector reforms. Currently, Dr. Watanagase speaks extensively on central banking and financial sector issues and is advisor to IFIs and central banks in Asia.
By Tarisa Watanagase. Posted July 5, 2012
The recent global financial crisis has renewed concerns about the inherent instability of the current international monetary system in which the world’s demands for asset or liquidity are met predominantly using the currency of one country, the United States dollar. If the supply of the global currency is inadequate to support global trade, the world faces deflationary risks. However, since the country issuing the global currency has the privilege of borrowing abroad in its own currency cheaply, its borrowing and, hence the supply of global currency, may become excessive. This may eventually become unsustainable, and may have significant systemic implications for the rest of the world, as witnessed in the global financial crisis.
Subscribe / Connect to Asia Pathways
- Agriculture and rural development
- Industry and Trade
- Information and Communications Technology
- Poverty Reduction
- Public-Private Partnership
- Regional Cooperation
- Social Development and Poverty
- Video Blog
- Does skilled emigration matter for real exchange rate volatility?
- Kuznets beyond Kuznets: Structural transformation and income distribution in the era of globalization in Asia
- Is female entrepreneurship a coping strategy during crises?
- “Theory of change” as a solution to the global sanitation crisis
- Do solar lights help kids do better in school?
- Sustainable funding schemes for the development of waste management projects in Asia on
- Minimizing the Cost of Fecal Sludge Management through Co-Treatment on
- Energy Efficiency: The Cornerstone for Achieving SDG 7 on
- Spillover effects of quantitative easing on the Asian credit market and policy options on
- Energy strategies must consider all parts of the ‘energy trilemma’ on