48. Promoting economic and financial stability depends crucially on political stability, but the same is true in reverse.

Failure at the Financial Stability Board

How Japan Fuels Global Financial Instability

Recalling its resolution 54 197 of 22 December 1999, entitled Towards a stable international financial system, responsive to the challenges of development, especially in the developing countries ,

It was also suggested that the international financial system needs to be reformed in order to ensure greater global financial stability.

(a) In the fifth preambular paragraph, the words are able to maintain their internal and external financial stability were replaced by the words have been more capable of maintaining their internal and external financial stability

Effective safeguard mechanisms must be implemented to ensure that financial openness would not result in the marginalization of domestic financial institutions and the destabilization of the financial system.

It needs to rethink how to address financial stability in its day to day work with members. Financial sector analysis should become fully integrated into the IMF s surveillance activities.

8. The multilateral financial institutions should continue to play a major role in development and in promoting the stability of the international financial system.

As regards financial services, there has been some concern about potential adverse implications for financial stability as a result of a liberalization of this sector.

Encouraging the efforts to enhance the stabilizing role of regional and subregional financial institutions and arrangements in supporting the management of monetary and financial issues,

215. The multilateral financial institutions should continue to play a major role in development and in promoting the stability of the international financial system.

The establishment of monetary and exchange stability enabled the financial system to recover credibility and deposits to climb back up to levels well above those that prevailed at the beginning of the crisis.

(i) Introduction of reforms in the international monetary system, so as to stabilize exchange rates and discourage international financial speculation

The international community has an essential role in contributing to the financial stability of East Asian countries.

Among the elements of a supportive external environment are global financial stability and promoting that is central to our work in the IMF and certainly also more open trade.

Global coordination of economic policies was also essential for the promotion of macroeconomic stability, especially in the monetary and financial markets.

At the same time, regulatory regimes have been toughened everywhere to prevent banks from jeopardizing the financial system again. For example, in addition to its price stability mandate, the Bank of England has been given the new task of maintaining the stability of the financial system.

One such feature is that Islamic finance emphasizes asset backing, thereby ensuring a direct link between financial transactions and real economic activities. Institutions savings and investment returns are closely linked, because they are determined by the real sector, not the financial sector.

7. Finally, referring to the report on global financial integration (A 51 388), he recalled that at its previous session the General Assembly had adopted resolution 50 91 of 20 December 1995, in response to serious concern in capital importing countries, the international financial community and even financial market regulators, at the danger represented by bouts of volatility of the international financial mechanism arising from technical changes and financial deregulation.

All of this has underpinned a much welcome calm in financial markets. Sovereign interest rate spreads have been well behaved, the euro has strengthened, and equity markets have risen robustly.

Substantial progress had been made in the establishment of a market infrastructure, privatization, the creation of a viable private sector, liberalization of foreign economic activities and financial stabilization.

Over the past few weeks the turmoil in South East Asian financial markets, in particular those of Hong Kong, had demonstrated that sound economic policies were not of themselves sufficient to ensure stability and protect a country from a financial crisis.

The IMF should see to it that there are no gaps in the surveillance of financial institutions. It can help shape a more robust global supervisory system which needs to be built in order to preserve the benefits of global financial markets.

The degree of internationalization of the RMB has continued to increase, and will benefit global economic and financial stability and growth.

Such policies were necessary to ensure financial stability and promote the efficient utilization of capital.

Here, the EU summit in December was an important step forward in terms of deepening political union and strengthening governance among the eurozone s member states. Nevertheless, more will be needed to restore financial stability, such as enlarging the total firepower of the European Financial Stability Facility.

In this combustible environment, policymakers are desperately using various vehicles including the ECB, the International Monetary Fund, and the European Financial Stability Facility in an attempt to stem the financial panic, contagion, and risk of recession. But are officials going about it in the right way?

Back to the Future in Finance

With regard to financial agenda and standard setting bodies such as the Financial Stability Forum and the Basel Committee on Banking Supervision, participants recommended that developing countries should be included in their membership and deliberations.

The aim is to improve and or stabilize incomes by providing financial services through a loan fund and training and advice in social and business matters.

Recalling that security, political reconciliation, and economic reconstruction efforts remain key to the stability of Haiti,

Recalling its resolution 55 186 of 20 December 2000, entitled Towards a strengthened and stable international financial architecture responsive to the priorities of growth and development, especially in developing countries, and to the promotion of economic and social equity ,

An increased level of long term non concessional loans from the international financial institutions could act as a stabilizing factor.

The Financial Stability Forum, created after the Asian financial crisis as an informal coordinating body the United States resisted anything stronger was renamed the Financial Stability Board. A board sounds more impressive, authoritative, and permanent than a mere forum.

A stable financial environment was critical to building confidence and generating the necessary capital flows to the developing countries.

Recalling also its resolution 2004 46 of 22 July 2004 on the support for the United Nations Stabilization Mission in Haiti,

The Economic and Social Council,

Another problem is that implementing sanctions that cannot be reversed quickly removes the incentive for Russia to return to the negotiating table, especially because the threat of an escalation of financial sanctions lacks credibility, given the risk to European and US financial stability.

The provision of specific public goods for economic development, such as financial stability, trade integration, environmental stability and knowledge dissemination, was at the heart of the corporate strategy.

We believe that the IMF needs to move decisively on financial stability issues and be more proactive to help prevent and mitigate future crises. The IMF should work closely with the Financial Stability Forum, the Bank for International Settlements and other relevant international bodies.

A tax on speculative transactions was therefore necessary to stabilize financial markets in the developing countries and finance development.

According to our tax adviser, she's only soso.

Instead of allowing a single self interested sector to dictate the economy s functioning, policymakers must determine precisely what the acceptable balance is between risky speculative activities and financial stability and ensure that the financial sector adheres to it. Governments emphasis should always be on reducing unemployment, instability, and inequality.

The international community should identify a mechanism that allowed debt to be cancelled or reduced without compromising the stability of the international financial institutions.