International Coordination of Economic Policies in the Global Financial Crisis: Successes, Failures, and Consequences

Abstract

The global financial crisis dominated the international financial landscape during the first 20 years of the 21st century. This paper assesses the contribution of the international coordination of economic policies to contain the crisis. The paper evaluates international efforts to diagnose the crisis and decide on appropriate responses, the treatments that were agreed and adopted, and the successes and failures as the crisis unfolded. International economic policy coordination eventually contributed importantly to containing the crisis, but the authorities failed to agree on a diagnosis and the consequent need for joint action until the case was obvious. The policy actions that were adopted were powerful and effective, but they may have undermined prospects for coordinated responses to crises in the future.

Keywords: International Economic Policy Coordination, Group of Seven (G-7), Group of Twenty (G-20), Federal Reserve, Central Banks, Swap Arrangements, International Monetary Fund, Multilateral Development Banks, Special Drawing Rights, Global Financial Crisis, Banking Crises, Financial Crises, Bank for Intern

JEL Classification: E50, E60, F00, F02, F30, F33, F42, F55