HANSGENBERG An international monetary system should provide a
stable and predictable environment for international trade and
investment. At the very least, it should not by itself be a source
of disturbances in the world economy, and it should be designed so
that policy errors or unforeseen shocks are not unduly transmitted
between countries. In this perspective, worldwide integration of
goods and financial markets present a particular challenge. Such
integration increases the cross-border effects of economic policies
at the same time as interlocking payments and financial systems
transmit financial disturbances rapidly throughout the world. As
the degree of integration and interdependence changes over time, is
not a foregone conc1usion that international monetary institutions
and mechanisms always remain well adapted to the state of the world
economy. Occasional review of the performance of the system as well
as proposals for improvements are therefore necessary. The
contributions to this volume have l been brought together with this
in mind.
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