For example, our strategy directs us to the following prescription: repeated and one-sided adverse shocks which directly affect the inflation rate and may not require, if taken individually, any specific policy adjustment, could very-well become destabilising, should private agents start doubting on the commitment of the  BIS Review 142/2007  5  monetary authority to maintain low and stable inflation and should expectations become disoriented.
The IMF, the Financial Stability Board (FSB) and the G-20 should provide the effective platform for addressing global issues in a more credible manner. The IMF would have to play a more active role in crisis prevention, management and resolution. It needs to strengthen its multilateral surveillance with a greater macrofinancial focus.