Literature review in internationally recognized dissertation format. At the same time, I need you to review this dissertation done by previous expert and what is the problem of this dissertation. I...

2. Literature review
2.1 Financial System Relevant Theories
2.1.1 The IMF role in the Asian financial crisis and global financial crisis
Large number of studies tried to explore or to figure out clearly the role of IMF in the Asian
financial crisis and global financial crisis as it is believe all over the world that IMF made
stronger the bitterness of the crisis.
During the 1990s and the early 2000s, given the extent of capital flow reversals, and the spread
of a behavior pattern emerging market economies faced more than nine major financial crises,
the crisis were chiefly driven by capital account problems in contrast to cu
ent account factors.
Injured by the 1997–1998 crisis, Asian high level development policy setter a
ived at an
agreement that the then existing international financial architecture — the official operating body
that facilitated the consistently even flow of goods, services, capital and help in maintaining
global financial stability with the International Monetary Fund (IMF) at its core —was
ineffective in working with the crisis-dominated economies who were trying their best to
overcome the crisis, and that the IMF even exace
ated the cruelness of the crisis. Consequently,
many Asian policymakers and observers questioned the credibility of the IMF. (Kaiwai 2010)
2.1.1.2 A Need for a New International Financial Architecture (kaiwai 2011)
 Lessons from the Asian financial crisis of 1997–1998 (Kaiwai)

There are at least two crucial lessons to comprehend from the Asian financial crisis:
First, if a nation is to rapidly integrated with world capital markets, its policy making authority
must have the ability to wisely handle the forces of financial globalization in a manner to deal
with any of its non desirable influences. In other word, it is important that emerging market
economies increase the strength of their nation economic supporting structure- by adding
effective frameworks to attain financial and macroeconomic stability which means policymakers
must augment their abilities to target various shocks, through macroeconomic policy options as
well as effective scaffold of financial-sector regulation and guidance.
Second, the world financial architecture should be improved by the removal of faults. The
iggest thrust of the reform idea was that the global financial market involved step-by-step
methods which could damage the stability and condition of many raising market economies that
were being integrated and exposed to international financial markets. Therefore, both emerging
market and developed economies must make efforts to make smooth and stable global capital
flows from emerging market to developed economies; to enhance economic observation of a
nation so as to catch early signals of risks that can give up to a financial crisis; to make sure
substantial global liquidity available at the beginning of a crisis; and to motivate the IMF to
make co
ect policy conditionality, related with crisis lending, reflecting the particular picture of
the nation in crisis.
 Lessons from the global financial crisis of 2007–2009

There are at least two crucial lessons to comprehend from the Global financial crisis:
First, a nation undoubtedly requires the ability to avoid a financial crisis. It means a country
policymakers must make concentrated efforts to enhance supervision, macroeconomic policy and
effective financial regulation. If policymaker’s action cannot help in avoiding a building up step-
y step risk, then the central bank should make effort against credit booms, increasing leverage,
sharp asset price increases, and the financial threats through tighter financial policy. Every nation
should make an effective, strong "step-by-step stability regulator" that is in charge of crisis
prevention, management and resolution...