Reforming the International Financial Architecture : Consensus and Divergence

This paper argues that the instability experienced by the international financial system in recent years not only reflects characteristics that are inherent in financial markets, but also flaws of the 'narrow' international financial architecture relating to the prevention and management of financial crises. These shortcomings are extremely costly for developing countries. A comprehensive reform is therefore needed, including not only areas in which, according to the author's personal evaluation, there is some degree of agreement, but also those in which significant divergence of opinion remains.