Risks of the International Financial System
The world economy has multiple vulnerabilities that challenge the international financial system. These vulnerabilities are similar to those that stimulated the G-7 to strengthen architecture of the IFIs. The objective of this chapter is to provide a framework of information on these vulnerabilities to motivate discussion of strengthening the IFA in the following five chapters. After 10 years of efforts by the G-7 and IFIs, many of the vulnerabilities in the world economy persist in similar or new forms. Events since 2000 reveal such vulnerabilities.
KeywordsInterest Rate Monetary Policy Central Bank Fiscal Policy Public Debt
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