The road has been bumpy
In recent years, some economies have focused on managing immediate crises at the expense of making longer-term adjustments that will raise productivity and standards of living.
For instance, to get through short-term challenges, many emerging-market economies have relied on strategies such as controlling capital and intervening in foreign exchange markets.
These policies are important tools for coping with urgent economic crises. But using these tools without an exit strategy works against the long-term global goal of achieving an open system that supports a smooth adjustment to shocks.
The international monetary and financial system could also come under more pressure as advanced economies emerge from the pandemic more quickly than others and begin removing monetary stimulus.