Introduction
1 Policy Response to the Global Financial Crisis:
Key Issues for Developing Countries
Introduction
Policy Response in DEEs: Payments Constraint
and International Support
Reform of the International Financial
Architecture
Summary of Policy Conclusions and Proposals
2 Global Economic Prospects:
The Recession May Be Over But Where Next?
Issues at stake
Bubbles, expansion and imbalances
Crisis, recession and recovery
No return to “business as usual”
- need for US adjustment
China too needs to adjust,
but it cannot be a global locomotive
Bringing in the bystanders: Germany and Japan
Exchange rate adjustments
Removing the deflationary bias in the
international financial architecture
Conclusions
3 Export Dependence, Sustainability
of Growth and Adjustment in China
Introduction
Measurement of contribution of exports
to economic growth
Import Content of Exports
To what extent is growth in China export-led?
4 The Subprime Boom-Bust Cycle and
Capital Flows to Developing Countries
Introduction
Previous post-war boom-bust cycles
Capital flows in the 2000s
The changing nature of capital flows
Changing vulnerabilities to boom-bust cycles
The impact of recent capital flows on DEEs
What is next?
Managing capital inflows
Conclusions
5 Why the IMF and the International Monetary
System Need More Than Cosmetic Reform
Introduction
The IMF’s failures in financial analysis
and early warning
IMF surveillance and members’ obligations
The international reserves system
Crisis intervention and lending
Conclusions
References