Finally, we will need to come up with enforcement mechanisms on countries that create negative externalities for the global economy despite multilateral or peer assessment cautioning them about the spillover costs their policies generate for other economies. Since we are far away from a situation where sanctions could be employed, we will need to use incentives.
For example, perhaps policy agreements could be reached whereby some countries abandon policies that are creating negative spillovers in return for other countries taking policy action with positive external spillovers for them. Designing such deals and getting countries to agree to them, however, will remain a major challenge. 21.