Amid the increased possibility of systemic risk, where shocks arising from certain financial institutions or markets spread rapidly due to the heightened financial interconnectedness, financial stability cannot be achieved based solely on policies of individual countries, unless accompanied by international cooperation.
Mr. Gramlich reviews the benefits and problems of world capital flows Remarks by Mr. Edward M. Gramlich, a member of the Board of Governors of the US Federal Reserve System, on “World Capital Flows” at the Carnegie Bosch Institute, University Center at Carnegie Mellon, Pittsburgh, Pennsylvania on 15/9/98.