Instead, countries will prefer to proceed through more exchange of information, peer review processes and ad hoc international agreements depending on the situation prevailing at any point of time. In other words, we will have to proceed by encouraging voluntary compliance by members, while also using peer group/multilateral spillover assessments as a soft pressure.
The template for such an approach is the G-20 MAP process. The forthcoming reports on country imbalances, and how they might affect the other G-20 members, will give us an opportunity to exert peer pressure on countries whose policies may lead to dangerous spillovers. 20.