The UK5 facing headline inflation that is now above the central bank’s official target and, on the other hand, threats to its economic growth is a classic example. The US is in a slightly different position.
A new paradigm for international cooperation A successful exit from the crisis requires not only an enhanced role for policy cooperation but also a new paradigm. For example, even if regulation and supervision are consistently strengthened at global level, the persistence of international imbalances (if left unaddressed) will continue to render the system vulnerable to crises.