The Current International Monetary and Financial System

Dr. Antony MuellerDr. Antony Mueller

Core International Finance Institutions Group of Seven (G7)Group of Seven (G7) Extended Groups (G10, G20)Extended Groups (G10, G20) InternaInternational Monetary Fund (IMF)tional Monetary Fund (IMF) Bank for International Settlements (BIS)Bank for International Settlements (BIS) World Bank GroupWorld Bank Group OOrganization for Economic Cooperation and rganization for Economic Cooperation and

Development (OECD) Development (OECD) Financial Stability Forum (FSF)Financial Stability Forum (FSF)

Proposals for Enhanced Regulation  Improvement of the standards of Improvement of the standards of

information and know-howinformation and know-how Installation of early warning systemsInstallation of early warning systems International coordination of monetary International coordination of monetary

and fiscal policiesand fiscal policies Creation of specific regulatory and Creation of specific regulatory and

supervisory bodiessupervisory bodies Control (taxation) of international Control (taxation) of international

financial flows (Tobin Tax)financial flows (Tobin Tax) Implementation of target zones for currenciesImplementation of target zones for currencies

Proposals for Enhanced Liberalization Abolishment or reduction of the role of the International Abolishment or reduction of the role of the International

Monetary FundMonetary Fund Abolishment or reduction of bailout measuresAbolishment or reduction of bailout measures Internal banking supervision according the principles of Internal banking supervision according the principles of

‘good governance’‘good governance’ Abandonment of inflexible exchange rate schemesAbandonment of inflexible exchange rate schemes   Continuation of ‘capital account convertibility’ as a Continuation of ‘capital account convertibility’ as a

necessary complement to ‘current account convertibility’necessary complement to ‘current account convertibility’   Internal financial market liberalization with the Internal financial market liberalization with the

continuing transition form ‘structural regulation’ to continuing transition form ‘structural regulation’ to improved ´prudential supervision’improved ´prudential supervision’

Fostering domestic fiscal and monetary austerityFostering domestic fiscal and monetary austerity

“Consensus” Reform Proposals   Fostering the implementation of ‘Core Principles for Effective Fostering the implementation of ‘Core Principles for Effective

Banking Supervision’Banking Supervision’ Improving global macroeconomic transparencyImproving global macroeconomic transparency Improving microeconomic transparency at the corporate levelImproving microeconomic transparency at the corporate level Establishing an international ‘Financial Stability Forum’Establishing an international ‘Financial Stability Forum’ Re-concentrating IMF-facilities on Stand-By Arrangements Re-concentrating IMF-facilities on Stand-By Arrangements

(SBA) with the potential facility of a Contingent Credit Line (SBA) with the potential facility of a Contingent Credit Line (CCL)(CCL)

Decelerating the pace of financial liberalization in favor of Decelerating the pace of financial liberalization in favor of appropriate ‘sequentialism’ appropriate ‘sequentialism’

Bail-in of the private sectorBail-in of the private sector Acceptance of control on short-term capital movementsAcceptance of control on short-term capital movements Support for managed floating currency systemsSupport for managed floating currency systems