Global Macroeconomic and Financial Governance
Working Paper #271
Viewed as a system, global macroeconomic and financial cooperation has three basic objectives. The first is global financial stability, which should be understood as the prevention of financial crises and better management of them when they occur. The second is international macroeconomic stability, and should be understood as guaranteeing an adequate supply of liquidity at the international level and the global coherence of macroeconomic policies that are designed at the national level (regional in the case of monetary policy in the Eurozone), particular those of major economies. The third objective is channeling financing to development functions, particularly to developing countries which do not access to private financing or during those periods in which private financing dries out; an additional function which has been added to these institutions is their contribution to the financing of global and regional public goods.
This paper analyzes the nature of global cooperation in these areas. It is divided in six sections, the first of which is this introduction. The three following sections deal, in a consecutive manner, with the three objective of global macroeconomic and financial cooperation just mentioned, the advances that have been made in recent years and the gaps that remain. The fifth analyzes institutional issues of global governance in these areas. The last draws some brief conclusions.
About the Author
José Antonio Ocampo
Professor of Professional Practice at Columbia University and former Minister of Finance of Colombia
Jose Antonio Ocampo is a Professor of Professional Practice in the School of International and Public Affairs and former Minister of Finance of Colombia. He is also a Fellow of the Committee on Global Thought at Columbia University. Prior to his appointment at Columbia, Professor Ocampo served as the United Nations Under-Secretary-General for Economic and Social Affairs, and head of UN Department of Economic and Social Affairs (DESA), as Executive Secretary of the UN Economic Commission for Latin America and the Caribbean (ECLAC), and has held a number of high-level posts in the Government of Colombia, including Minister of Finance and Public Credit, Director of the National Planning Department, and Minister of Agriculture . Professor Ocampo is author or editor of over 30 books and has published over 200 scholarly articles on macroeconomic theory and policy, international financial issues, economic development, international trade, and Colombian and Latin American economic history.