I note that in some directives recently issued for the securities sector new methods of supervisory cooperation have been introduced, such as the possibility to delegate responsibilities (in the Prospectus directive) and the role of Level 3 committee  1  Joint Forum, Ageing and pension system reform: implications for financial markets and economic policies, September 2005.
This means letting real exchange rates adjust in countries with large current account surpluses, like China; reducing unsustainable fiscal deficits in the United States; and making labour markets more flexible in Europe. The IMF should play a lead role in bringing the right players together, facilitating discussion, and relying on markets to achieve the necessary adjustments.