Strengthening the Early Warning Exercise

Enhancing IMF and FSB coordination

• Author(s): Bessma Momani, Skylar Brooks, Michael Cockburn, Warren Clarke & Dustyn Lanz • Published: September 2013
• Pages in paper: 19


Abstract

Following the 2007–2008 global financial crisis, the G20 leaders tasked the International Monetary Fund (IMF) and the newly created Financial Stability Board (FSB) to jointly undertake Early Warning Exercises (EWEs) in order to identify vulnerabilities within the global financial system and encourage appropriate policy responses. This paper argues that a series of challenges have prevented the EWE from realizing its full potential. In particular, the advantages accruing from the joint nature of the exercise have not been fully realized. The paper then puts forward recommendations intended to improve the process and encourage implementation of EWE findings among national policymakers.



Register for personal access to all papers for just £47.99

To download papers you need a subscription to World Economics Journal.
Get access to the full 20 year archive of thousands of papers and abstracts.

Order online now for 1 years immediate access for 1 user via username/password.


You do not need a PayPal account to pay by card.

Institutional Subscriptions, Contact Us
Existing Subscriber Log-in



More Papers From These Authors in World Economics:


The Oil-producing Gulf States, the IMF and the International Financial Crisis
Author: Bessma Momani

As the finance-strapped International Monetary Fund (IMF) was placed at the centre of coordinating funding and offering ideas to navigate out of the international financial crisis, it became clear that the international community needed to reinvigorate the emerging market economies’ role in the organisation and in the broader international financial architecture. At the time of the Group of 20 (G20) meetings, the Gulf states were viewed as likely contributors to IMF liquidity. Despite the UK’s Prime Minister Gordon Brown’s visit to the Gulf in November 2008, and his claim that the Gulf would assist in an injection of liquidity into the IMF, the Saudi rulers decided to go empty-handed to the G20 meetings in Washington. Unlike the 1970s, when the Gulf came to the rescue of the western and international banking system, today Gulf rulers are more responsive to a new class that is more scrutinising of petrodollar recycling.

Read Full Paper >


The EU, the Middle East, and Regional Integration
Author: Bessma Momani

The European Union’s venture into enhancing trade linkages with the Middle East, as conceived by the 1995 Barcelona Process, had high hopes but failed in producing the intended political and economic deliverables. The Euro–Mediterranean Partnerships were flawed, as they created a hub and spoke trading relationship offering few of the welfare or (often forgotten) political benefits envisioned by the Europeans. The 2004 Agadir Agreement, however, may help rectify some of these problems by helping to stimulate intraregional trade.

Read Full Paper >