Global governance

Future of the world trading system: Asian perspectives

Richard Baldwin, Masahiro Kawai, Ganeshan Wignaraja, 12 June 2013

The WTO risks losing its centricity in the world trading system due to its focus on 20th century trade issues and lack of progress in the Doha Round. This column introduces a new eBook that looks at how Asia meanwhile built a deep network of supply chains and is experimenting with new forms of regional trade governance. Asia’s experience of open trade-led development offers lessons for other regions. Better coherence is also vital between Asia’s regional trade rules and global trade governance.

Balance-sheet repairs in European banks

Nadege Jassaud, Heiko Hesse, 13 April 2013

The recent IMF assessment of Europe’s financial sector found that much has been achieved to address the recent financial crisis in Europe, but vulnerabilities remain, and intensified efforts are needed across a wide front, one of which being bank balance sheet repair. This column looks at progress with bank restructuring in Europe.

Measuring the clarity of central-bank communication

Aleš Bulíř, Martin Cihák, David-Jan Jansen, 10 April 2013

Quality, clear communication is a very powerful tool for central banks because it influences expectations. This column presents new research on central-bank communications, using a formal measure of clarity – the ‘Flesch-Kincaid grade level’. The picture is varied: there are significant and persistent differences in clarity over time and across countries. However – and worryingly – the financial crisis is associated with unclear communication for some central banks.

Mega-regionalism in Asia

Ganeshan Wignaraja, 6 April 2013

Asia’s trade-policy landscape is set to change with the start of negotiations on a Regional Comprehensive Economic Partnership involving ASEAN and major regional economies. This column argues that such a deal could bring economic benefits, but that realising them depends on tackling several challenges during the negotiations and afterwards.

The 'Good Global Citizen' remit for the international community: A novel responsibility for the IMF

Biagio Bossone, Roberta Marra, 16 March 2013

Since 2008, we have learned that the root causes of global economic instability are more than the sum of domestic instabilities. This column calls for a broad reconsideration of the principles underpinning current global economic governance; arguing that in a globalised world, isolated domestic economic policymaking is not enough. The international community needs to adhere to a ‘Good Global Citizen’ remit – housed by the IMF – if we are to tackle global economic policy under collective responsibility.