More importantly, I suggest that enabling the IMF to provide international liquidity when needed with schemes that establish a “Global Financial Safety Net” and expanding its mandate in the light of the recent global crisis to include macrofinancial surveillance and spillover analysis should be seriously considered.
It is also a set of markets where there is demand and supply and a market-clearing price. As the system evolves and is stressed in different parts, other parts of the system adjust. As supply and demand changes, the price adjusts. Does this always happen seamlessly or painlessly? No.