The IMF as Global Financial Anchor

Today’s financial market turmoil has exposed weaknesses in the current global financial system, of which many were known but went unaddressed. This lack of action reflects the increased complexity and linkages of the global financial system, and the absence of an effective anchor for financial stability. Restoring financial market confidence has had to rely on liquidity injections by major central banks. While this appears to have been successful, questions remain as to whether the turmoil could have been averted and its impact mitigated.