The ongoing global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The crisis has called for revisiting monetary and fiscal policy and has brought to light a number of deficiencies in financial regulation and architecture. The global nature of the financial crisis has made clear that financially integrated markets, while offering many benefits, can also pose significant risks, with large real economic consequences. Deep reforms are therefore needed to the international financial architecture to safeguard the stability of an increasingly financial integrated world. Emerging markets and developing countries face some specific policy issues as they address institutional and development challenges.
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