Getting Chiang Mai right
Asia’s emergency infrastructure is on the right track, but there is still room for improvement
Asia’s flagship contribution to the global financial safety net is its Chiang Mai Initiative Multilateralization (CMIM), a regional commitment network of east Asia and South-east Asian central bank swap lines. More has been written about the Federal Reserve’s swap network (or the European Stability Mechanism for that matter) than about the CMIM – because no one has ever used it, owing to numerous design flaws. That may be changing as Asean+3 – the member nations of the Association of Southeast
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