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Financial crises are nothing new in the annals of history of the capitalistic path of economic development; indeed, they are part of business cycle. The theoretical basis for this is well entrenched in the concept of ‘Keynesian Cross’. Tales of crises date back centuries, but have taken a new turn as the race for more globalization goes on, which involves liberalizing trade and opening up the financial sector. This has made many nations vulnerable to crises that are likely to be repeated, perhaps frequently. Based on recent experience, warning signs can be seen in the dollar-centric exchange rate, which is the mainstay for the stability of the current global financial system. To a careful observer, there is clearly fatigue in the system.

policy uncertainty --- money demand --- the U.S.A., asymmetry --- nonlinear ARDL --- monetary policy --- cash flow --- investment --- GMM --- China --- Special Drawing Rights (SDRs) --- international monetary system --- RMB internationalization --- Belt and Road Initiative --- risk management --- Grondona system --- currency convertibility --- commodity price stabilisation --- currency crisis --- economic institutions --- currency --- monetary plurality --- Argentina --- cointegration --- exchange rate disconnect puzzle --- macroeconomic fundamentals --- emerging market economies --- NARDL --- trade balance --- exchange rates --- currency pegs --- banking crises --- China --- Special Drawing Right --- international monetary system --- reserve currency --- RMB internationalization --- mortgage crisis --- default swap --- derivative --- Asian crisis --- LIBOR