Thus, the following issues assume importance •  Will the recent developments see some domestic correction in the US, leading to a decline in its CAD? •  Are there chances of investment increasing in the Asian countries and whether this would reduce their surplus? •  Can exchange rate adjustments contribute significantly towards correcting current account imbalances?
I will first talk about the main changes in the international monetary system and then comment on the institutional set-up of the international system, before touching upon reform efforts in the area of crisis prevention and resolution.