International Coordination of Economic Policies in the Global Financial Crisis: Successes, Failures, and Consequences

Working Paper
19-11
July 2019
Photo Credit: 
REUTERS/Stephen Jaffe-IMF/Handout (UNITED STATES)

This paper evaluates international efforts to diagnose the global financial crisis and decide on appropriate responses, the treatments that were agreed and adopted, and the successes and failures as the crisis unfolded. International coordination of economic policies eventually contributed importantly to containing the crisis, but the authorities failed to agree on a diagnosis and the consequent need for joint action until the case was obvious. The policy actions that were adopted were powerful and effective, but they may have undermined prospects for coordinated responses to future crises.

Data Disclosure: 

The data underlying this analysis are available here. Data for figures 2, 3, 5, and 7 are not included because they are proprietary.