Singh, Anoop, (2016),“Reforming the international monetary system”, Brookings, 19 April
It is close to a decade since the start of the global financial crisis that raised many critical questions. Among these are how the international monetary system monitors, regulates, and manages the volatility of global liquidity and the consequent risks for international financial stability. The International Monetary Fund (IMF) is also now discussing a road map for strengthening the international monetary system and better managing liquidity shocks. Today’s urgency of this consideration is reinforced by a number of factors that could have multiple effects on global liquidity:Most important among them is the ongoing historic rise of emerging markets, and the growing likelihood that tomorrow’s key financial players—official and private—will come from emerging markets. This historic shift of global activity and finance from advanced economies to emerging and developing economies and their rising financial integration will impact global liquidity. In the near term, the prospects and timing of the Federal Reserve’s further “lift-off” are immediate factors. Coupled with renewed concerns about retrenchment in global markets already affected by ongoing regulatory reforms, they have increased financial market uncertainties.
Relevant Posts
- Mosler, Warren, Silipo, Damiano B., (2016), “Maximizing Price Stability in a Monetary Economy”, Levy Economics Institute, April
- Miscossi, St., (2015), “The Monetary Policy of the European Central Bank (2002-2015)”, CEPS Special Report, 22 May