Second, the negative effect of international shocks may be kept in check by ongoing improvements in the resilience of the financial sector. This month, the IMF reported (in its WEO) that the global financial system is in its strongest shape over the past three years.
Many of the participants are from large countries with well-developed and sophisticated financial systems, and yet, they understand that individual country action is not enough. They understand that there is an imperative to come together and take collective action to minimise contagion risk in an international financial system that is highly interconnected and yet increasingly diversified.