What potential solutions are there

Reference no: EM132139640

Question: 1. According to the Bird and Borio readings, global economic imbalances arise over time and are often the usually the result of financial or structural economic imbalances that manifest in external imbalances. What structural/political/behavioral impediments exist to restructuring the international monetary/financial system to a form that will avoid the generation of imbalances that lead to crises? What potential solutions are there?

2. Use a combination of (at least) two models from earlier in class, and the political economy analysis above, to explain why political actors will likely choose policy based on domestic targets, how this leads to imbalances, and how these imbalances lead to crises.

Reference no: EM132139640

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