Multilateral surveillance: ensuring a focus on key risks to global stability

The 2007/9 crisis and the ongoing transformation of the global economy call for a rethink of the scope of the Fund’s multilateral surveillance. This paper first reviews the reforms already undertaken in response to the crisis as a basis for exploring the case for further initiatives to ensure that the Fund’s multilateral surveillance function is equipped to identify the key risks to global stability, within its areas of comparative advantage. The paper offers recommendations for further reforms within the Fund’s existing mandate, and more far-reaching changes that might be warranted over the medium term, in particular to ensure that risks from capital flows are adequately addressed.