Problems of the global monetary system

But the Decision also includes a principle recommending that members avoid exchange rate policies that result in external instability, regardless of their intent, thereby newly capturing exchange rate policies that have proven to be a major source of instability over the past decades.

Olivei eds. And the latest financial market volatility has brought new challenges. Slide 5. To better respond to the challenges of an increasingly globalized economy, the IMF is in the process of reforming our surveillance framework. Although we have already marked down our growth projection for the United States, a weaker housing market and a sustained tightening of credit conditions could further depress economic activity.

factors affecting international monetary system

This has counterbalanced a period of softness in the United States. The idea of a global currency is not new.

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Problems of the International Monetary System