In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis?
Firstly, there have to be a multinational safety net to safeguard the world financial system from the Asia-type crisis. Secondly, international institutions such as IMF and the World Bank have to monitor problematic countries more nearly and provide timely advice to those countries. Countries have to be required to completely disclose economic and financial information so that devaluation surprises can be prevented. Thirdly, countries have to depend more on domestic savings and long-term foreign investments, instead of short-term portfolio capital. There can be other suggestions.