The accelerated inflation and large payment imbalances that have plagued the world economy in recent years have created new challenges for economic policy. Institutions such as the International Monetary Fund have found themselves operating in a global environment different from that for which they were originally designed, and developing countries have found their aspirations threatened by large increases in their payment deficits.

The accelerated inflation and large payment imbalances that have plagued the world economy in recent years have created new challenges for economic policy. Institutions such as the International Monetary Fund have found themselves operating in a global environment different from that for which they were originally designed, and developing countries have found their aspirations threatened by large increases in their payment deficits.