Research Paper 32, November 2010

This South Centre report argues that the G20 agenda misses some of the key issues that need to be dealt with in order to effectively reform the international monetary system so as to avert future global financial crises. The missing issues include enforceable exchange rate and adjustment obligations, orderly sovereign debt workout mechanisms and the reform of the international reserves system.

The paper also points out that there are no effective rules to control the unstable global financial market, no multilateral discipline over misguided monetary and exchange rate policies, and national policy makers are preoccupied with resolving crises by supporting those responsible for these crises rather than introducing measures to prevent future crises. This may sow the seeds for future problems.

 click here to read