## Strengthening the International Monetary System - Taking Stock and Looking Ahead

_Policy Papers, March 23, 2011_

## Source details

**Canonical URL:** [Strengthening the International Monetary System - Taking Stock and Looking Ahead](https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/strengthening-the-international-monetary-system-taking-stock-and-looking-ahead-pp4548)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2016/12/31/strengthening-the-international-monetary-system-taking-stock-and-looking-ahead-pp4548/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2016/12/31/strengthening-the-international-monetary-system-taking-stock-and-looking-ahead-pp4548/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2016/12/31/strengthening-the-international-monetary-system-taking-stock-and-looking-ahead-pp4548/bundle-manifest.json)

## Bibliographic details
- Published: March 23, 2011
- Series: Policy Papers

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### Overview
- The current IMS has survived for over forty years, underpinning strong growth in GDP and in the international exchange of goods and capital, one of its core objectives.
- Interdependence among the world’s economies has grown dramatically, increasing the importance of a sound international monetary system.
- Since the 2008 crisis, renewed international momentum has emerged for attempting to reform the IMS, but debate shows little consensus on underlying problems or solutions.
- Publication date: March 23, 2011.

### Symptoms of instability
- Frequent crises.
- Persistent current account imbalances and exchange rate misalignments.
- Volatile capital flows and currencies.
- Unprecedentedly large reserve accumulation.

### Identified root causes (four)
- Inadequate global adjustment mechanisms to prevent inconsistent or imprudent policies among systemic countries.
- Lack a comprehensive oversight framework for growing cross-border capital flows, covering both source and recipient countries.
- Inadequate systemic liquidity provision mechanisms.
- Structural challenges in the supply of safe assets.

### Policy implications and priorities (implied by findings)
- Strengthen multilateral mechanisms that support coordinated global adjustment among systemic economies.
- Develop a comprehensive oversight framework for cross-border capital flows that encompasses both capital source and recipient jurisdictions.
- Enhance systemic liquidity provision mechanisms to reduce risks from strains in global funding markets.
- Address structural constraints in the supply of safe assets to better align global demand and supply and mitigate reserve accumulation pressures.

### Subject tags (as listed)
- Capital flows
- Central banks
- Financial stability
- International cooperation
- International monetary system
- Risk management

*Strengthening the International Monetary System - Taking Stock and Looking Ahead, March 23, 2011*

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## Content in this bundle

- **Accumulated impulse responses to a one-standard deviation growth shock**
  - [Accumulated impulse responses to a one-standard deviation growth shock (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2011/_032311.pdf.md){rel="alternate" type="text/markdown"}
  - [Accumulated impulse responses to a one-standard deviation growth shock (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2011/_032311.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/strengthening-the-international-monetary-system-taking-stock-and-looking-ahead-pp4548_