IDEAS home Printed from https://ideas.repec.org/a/wej/wldecn/405.html
   My bibliography  Save this article

Global Imbalances, the Financial Crisis and the International Monetary System

Author

Listed:
  • Ignazio Visco

Abstract

Even though the proximate causes of the crisis lie in previous financial excesses, the extent to which these have developed owes much to fundamental sources of vulnerability present in the global macroeconomic environment. However, imbalances and asset price misalignments went on basically unchecked, reflecting a climate of general macroeconomic optimism and the confidence in the ability of policymakers to cope with critical conditions in financial markets. The limits of the existing policy set-up, the main challenges ahead and the importance of rebalancing global demand in order to achieve a more sustainable pattern of economic growth at the world level are examined in this article. The risks of disorderly exchange rate movements and possible implications for the international monetary system are considered, and the exit from the exceptional monetary and fiscal stimulus currently in place are discussed, with the view that while supporting the recovery care should be taken not to create new sources of financial instability.

Suggested Citation

  • Ignazio Visco, 2010. "Global Imbalances, the Financial Crisis and the International Monetary System," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 11(1), pages 69-82, January.
  • Handle: RePEc:wej:wldecn:405
    as

    Download full text from publisher

    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=405
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dariusz Urban, 2011. "Macroeconomic Considerations and Motives of Sovereign Wealth Funds Activity," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 5(2), June.
    2. Catte, Pietro & Cova, Pietro & Pagano, Patrizio & Visco, Ignazio, 2011. "The role of macroeconomic policies in the global crisis," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 787-803.
    3. Yap, Josef T., 2011. "The Political Economy of Reducing the US Dollar’s Role as a Global Reserve Currency," ADBI Working Papers 302, Asian Development Bank Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wej:wldecn:405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ed Jones (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.