From the perspective of global equilibrium, however, for the faster recovery of world economy, capital should, by all the principles of economic structural adjustment, flow into economies with faster growth and higher productivity. As pointed out earlier, multiple local equilibria may be suboptimal rather than optimal given the external effects.
Thus, policy coordination striving for having a globaldimension equilibrium through the IMF, BIS, and the G20 is called for. Conclusions The Global Financial Crisis revealed that under excessive financial integration without appropriate regulations and financial safety nets, crises could spread around the world with amazing rapidity.