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Northwestern Pritzker School of Law
World Financial Authority; IMF; World Financial Unit; international liquidity; monetary policy
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Solving Global Financial Imbalances: A Plan For A World Financial Authority, Carlos Mauricio S. Mirandola
Solving Global Financial Imbalances: A Plan For A World Financial Authority, Carlos Mauricio S. Mirandola
Northwestern Journal of International Law & Business
This paper will propose a plan to reform international finance—the World Financial Authority (WFA) Plan. Under such a plan, the IMF and other existing international financial institutions would be reformed and coordinated around a newly created WFA. The WFA would have two core functions. The first function would be to manage international liquidity, thus reducing externalities arising from domestic monetary policies adopted by its members, and addressing global liquidity problems involving financial activities of transnational private banks. The second function would be to help countries make their domestic monetary policies more effective, thus regaining traction and preventing contagion. A central …