The article assesses changes in the global financial architecture and related global governance. Despite useful reforms lacunae remain. Analysis of financial regulations and measures to address global imbalances show serious weaknesses in addressing risks from shadow banking and large banks that...

Three open economy puzzles are, first, the price level of an advanced economy (AE) is higher compared to that of an emerging or developing economy (EDE) measured in the same currency. But, second, inflation tends to be much higher in EDEs. Third, there is a persistent deviation of real exchange...