In this case, international cooperation is mainly designed to ensure global financial stability and enhance the architecture of the international monetary system. The economic rationale for this kind of cooperation can be summarised as follows.
First, financial instability can materialise even with sound macroeconomic policies, as a result of factors such as inadequate supervision in emerging market economies and so-called “contagion”, ie the international transmission of instability. Second, a world divided into sovereign states has inevitably moved more rapidly towards full capital mobility than towards common rules.