International Financial Architecture and the Resolution of Financial Crises

In: International journal / Canadian Institute of International Affairs, Band 57, Heft 4, S. 624-630

Abstract

Maintains that Canadians, including the Bank of Canada, have been actively involved in international attempts to identify & deal with serious weaknesses in the foundation of the international financial architecture that were exposed by the financial crises of the late 1990s. Factors that led to financial crises in Mexico, various nations of Southeast Asia, Russia, & more recently in Argentina, are examined. Lessons learned from these financial upsets, & what has been done to minimize the risks of future crises, are explored. Special attention is given to the role played by the government of Canada & the Bank of Canada in the international effort to strengthen financial systems in emerging market economies & to improve risk management in leading industrial countries. An assessment of approaches aimed at alleviating future problems indicates that significant progress has been made in identifying the elements of a strategy to reduce incidences of future crises; however, much work still needs to be done, especially in the area of developing a framework for promoting orderly debt restructuring. J. Lindroth