Fast forward to today. The intensity and scope of the recent crisis reflected unprecedented economic disequilibria among national economies. Integral to the buildup of vulnerabilities in many asset markets were large, unsustainable current account imbalances across major economic areas. Once again, the international monetary system failed to promote timely and orderly economic adjustment.
Some emerging markets today face challenges similar to those of Canada in the 1950s. Last November, the G-20 launched an important process to address the challenges. Countries committed to promote strong, sustainable, and balanced growth in global demand and agreed on a framework that stresses the shared responsibility of member countries to ensure that their policies support the commitment.