Progress and Challenges for International Financial Reform

Abstract

Although the U.S. economy continues to gain strength, global growth is weak; and several important economies face deflationary risks. Financial markets have become global, but regulation is conducted at the national level. It is essential to have global cooperation on financial regulation if future global financial crises are to be avoided. The United States has led the effort to achieve this. This paper provides an overview of the efforts under way and discusses the main objectives of future international financial regulation.