Abstract

Discussions of how to reform the international financial system took center stage in 1998 in the aftermath of the crises in the Asian countries. Since then, much has been done to improve the IMF’s capacity for crisis prevention and the architecture of the international financial system more generally. Specifically, initiatives have been launched to improve the IMF’s analysis of countries’ vulnerability; to increase the transparency of economic policymaking by member countries as well as of the IMF’s own policies and operations; to promote timely and accurate reporting to the IMF and publication of economic data within a framework of internationally accepted standards; to strengthen financial sectors, including through prudential supervision; and to encourage the adoption of consistent monetary and exchange rate regimes less prone to crisis. As a result, policies have been strengthened in many countries. The resilience of the global economy and the international financial system in the face of the economic slowdown of 2001 and the events of September 11 suggests that these efforts are beginning to bear fruit.