The choices we make in advance of the next financial crisis will have a major impact in determining the magnitude of the economic damage. Our vulnerability to crisis depends on the strength of the protections we build into the financial system through prudential regulation, as well as on the...

As the Federal Reserve’s statutory objectives are defined as specific goals for the U.S. economy-to pursue maximum sustainable employment and price stability-and its policy decisions are targeted to achieve these dual objectives, there might seem to be little need for its policymakers to pay...

Since the grave disruption of the subprime market at the start of the global financial crisis triggered major turbulences in the functioning of money markets in all large advanced economies, central bankers have experienced extraordinarily demanding and difficult times, characterized by a...

The future of finance, and in particular saving it from a popular backlash against the global financial crisis and related crisis management policies, has become a matter of great concern. In this brochure, which presents in written form a lecture from the Per Jacobsson Foundation’s lecture...

This paper discusses that as the IMF had been designed to assist countries with current account deficits, its role came under discussion. It subsequently regained some importance during the Latin American crises in the 1980s and the emerging market crises in the 1990s. It became apparent that an...

This paper describes a financial system that should be adopted for the 21st century. The paper highlights that the financial crisis of 2008 has raised fundamental questions about how the financial industry is structured, managed, and regulated. The paper discusses that a well-functioning...

The October 2009 Per Jacobsson Lecture, delivered in Istanbul in conjunction with the 2009 Annual Meetings of the IMF and World Bank, examined the issue of longer-run growth prospects for the global economy following the recent global economic crisis. Will the world be able, in the five to ten...

This paper discusses about the fact that longer the recognition problems persist, the greater the risk of continued 'active inertia' and disappointing outcomes. The possibility of policy mistakes and business accidents will increase further, it will become harder for industrial country...

This paper discusses the need for Asian Monetary Integration. The original motivation for proposals for Asian monetary Integration had to do with a desire to reduce Asia's susceptibility to shocks, particularly financial shocks. There was also a broader sense that Asia had to be more...