But we need a system that better balances the immediate imperatives of the short run with the important building blocks for longer-run prosperity. That’s what I want to talk about today. We aspire to an international monetary and financial system that favours inclusive and sustainable growth.
In the long run, that is best achieved by a system that promotes economic integration—with free trade, open capital markets and flexible exchange rates. But the current system isn’t there yet, and while we aspire to the long run, we live in the short run. For both these reasons, policy-makers face a delicate balance.