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All severe crises have required a reformulation of the International Financial Architecture (IFA). The G20, abruptly turned into a discussion and action forum to cope with the crisis, focused its work on two areas: first, the coordination of the macroeconomic policies to come out of the crisis...
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Financial regulation is normally imposed in reaction to some prior crisis, rather than founded on theoretical principle …. In the past, regulation has been deployed to improve risk management practices in individual banks. This was misguided …. Instead, regulation should focus first on systemic externalities (contagion) and second on consumer protection (asymmetric …
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