Publication

This paper explores ways to repair the governance of international financial regulation and its interaction with other elements of macroeconomic policies. The author argues that credibility and trust in any new international regulatory framework must first begin at home. Governments must ensure that fiscal and monetary policies work in harmony. This includes the cooperation and coordination of regulatory and supervisory functions to ensure that macro-prudential policies effectively complement domestic monetary policy. By doing so, this strengthens a macroeconomic framework that will reduce the impact of the next financial crisis.