The international monetary system is a topic that encompasses a wide range of issues—reserve currencies, exchange rates, capital flows, and the global financial safety net, to name a few.
Some are of the view that the current system works well enough. I take a less sanguine view. Certainly the world did not end with the crisis that began in 2008 and a recovery is under way. But, it is not the recovery we wanted—it is uneven, unemployment is not really going down, there are widening inequalities, and global imbalances are back.
Reform of the international monetary system may be wide-ranging and complex. But concrete reforms are needed to achieve the kind of well-balanced and sustainable recovery that the world needs, and to help prevent the next crisis.
Filed under: Advanced Economies, Economic Crisis, Emerging Markets, G-20, Global Governance, Globalization, International Monetary Fund, Low-income countries, Multilateral Cooperation | Tagged: capital controls, capital flows, early warning exercise, exchange rates, Flexible Credit Line, FSAP, G-20 mutual assessment process, global financial safety net, global imbalances, international monetary cooperation, international monetary system, macrofinancial linkages, policy coordination, precautionary credit line, regional financing mechanisms, reserve currencies, Special Drawing Rights, surveillance | 17 Comments »
