Other countries such as China have pegged their currencies to the dollar, which meant that monetary policy in the world as a whole became very expansionary. This supported strong growth in the world during the years 2002-2006 and gradually led to an increase in oil and other commodity prices. There are also several causes that have interacted and led to the financial crisis. The credit rating agencies have given the new financial products too high ratings because of they have not taken sufficient account of the risk that it would not be possible to sell these products in the market. The supervision of the financial markets has not given sufficient consideration to the problems that can arise from a house price bubble. The regulations in the financial markets are procyclical, that is, they tend to reinforce fluctuations in economic activity. The remuneration structure in the private sector has moreover encouraged short-term thinking and substantial risk-taking. Massive measures have helped avoid a financial meltdown Massive measures by governments, central banks and other authorities around the world have meant that a financial meltdown could be avoided. The central banks have contributed large liquidity injections, that is, lent money to the banks against collateral. Several central banks have also provided emergency liquidity assistance to individual institutions. The Fed, the ECB and other central banks have moreover lent money through swap agreements to other central banks to alleviate the crisis in other countries.
Some issues which may warrant closer examination include: •  Ensuring that resources in the Poverty Reduction and Growth Facility – our main lending instrument for developing countries – remain adequate to meet future demands;  •  New ways to help low-income countries deal with economic shocks;  •  In the case of low-income countries which do not need or want IMF lending, how to enhance the IMF’s role in signaling to others the strength of these countries’ policies;  •  The role of the Fund in supporting low-income countries’ poverty reduction strategies; and  •  Our relationship with donors and aid agencies. As a partner of the 2002 Monterrey Consensus, the IMF is committed to supporting countries in their efforts to reduce poverty and reach the Millennium Development Goals. Our unique position gives us the potential to contribute to building both pillars of the Monterrey Consensus. On one side, we can work with countries to design policies and build institutions that will help them grow out of poverty. On the other, we can advocate for more and better international support, and help with its coordination. Nevertheless, examining the issues highlighted earlier will help frame a better understanding of the areas of low-income country work for which the IMF can take responsibility, and those that will fall to other institutions and actors. It would be helpful to have greater definition in this area as we approach the U.N. Millennium Summit in September. Fifth, the IMF’s internal governance and management.