But as global markets grow and broaden, and countries become more  4  BIS Review 71/2007  interconnected, we have an increasing stake in a sound international monetary system, and in an institution to support it. Third, and finally, the IMF is best placed to be that institution. But to realize its potential, we need to modernize the way it pursues its mandate.
I will mention three issues, which I believe are especially important in a longer-term perspective: first, mitigating procyclicality; second, correcting incentives towards short-termism and third, enhancing transparency by improving the availability of data important from a financial stability perspective. First, there is a need to mitigate procyclical effects stemming from the current regulatory framework.