earticle

영어

Since the breake of the Asian Financial Crisis which engulfed the three fastest grown economies in the world, many arguments and initiatives for restructuring international financial system have emerged. This was because the old Bretton Woods System and the present international financial architecture including the IMF system were proven to be ineffective to deal with the mammoth-sized financial crisis witnessed in Asia and the subsequent similar crises in Brazil and Russia. Since the break of the financial crisis in Asia, an accelerating momentum appeares being built on the proposition that those Asian countries alone should not be blamed 100 percent for the crisis and that the vulnerability of the present international financial system also should be blamed. Those arguments for restructuring world financial system ranged from the suggestion of abolition of the IMF to establishing a world central bank and strengthening of the IMF. In reality, however, the leading initiative to deal with present weakness in the world financial architecture is moving along the lines of the G22`s suggestion by the IMF. Nevertheless, one cannot deny that the strong impulse and zeal to construct a new international financial architecture is losing strength as the world economy as well as the economies of the crisis-hit countries recover at a pace much faster than anticipated earlier. Therefore, Korea which experienced a serious setback in the economy from the financial crisis in 1997, should pursue strongly the ongoing structural reform and deploy prudent macroeconomic policies with extreme care to prevent another crisis.