The international monetary system is a lightning rod for tensions in the world economy. Its shortcomings may fuel protectionist pressure. It is also a system in flux, no longer meeting the needs of a changing world economy. This is why Chatham House and the ESRC World Economy and Finance Programme have looked at the current system, assessed the goals and principles that underpin it and made some recommendations for the way forward.
Countries are responding in different ways, and the steps that some of them are taking signal tensions and changes ahead. In times of stress, when countries are trying to secure steady economic recovery, domestic policy goals may be in conflict with international obligations.[…]