Question: QUESTION TWO In an integrated global financial system, a financial crisis in one country can easily be transmitted to other countries causing a global crisis.

QUESTION TWO In an integrated global financial system, a financial crisis

QUESTION TWO In an integrated global financial system, a financial crisis in one country can easily be transmitted to other countries causing a global crisis. Required: a) What measures would you propose to prevent a crisis such as the 1997 Asian type crisis from occurring? (5 Marks) b) Describe the incompatibility trinity and discuss its implications. (5 Marks) c) Discuss the criteria for a good international monetary system. (5 Marks) [TOTAL: 15 MARKS]

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