Bini Smaghi shares thoughts on monetary system reform

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Lorenzo Bini Smaghi, a member of the executive board of the European Central Bank, discussed the reform of the international monetary system at a conference in Rome on December 16.

Bini Smaghi explored the theoretical underpinnings of international policy collaboration, looking at why in practice it seems to fall short of what is needed in today's global environment, and why countries remain trapped in short-term policy-making.

He argued it is better to prevent volatility than to cure it. "The

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