Tetangco Welcomes Expansion of IMF Surveillance Mandate over Its Members
MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) welcomed the International Monetary Fund's expansion of its surveillance mandate to improve its oversight of the global economy.
"Improvements in surveillance are always welcome, especially moves to incorporate domestic policies," BSP Gov. Amando M. Tetangco Jr. said in a statement.
The IMF's executive board will make permanent a pilot program that studies how some countries' policies may be harming other economies and threatening to destabilize the global system of trade, finance and output. The new oversight tools, according to IMF Managing Director Christine Lagarde, are "important steps in rebooting the way the fund conducts surveillance."
Tetangco agreed: "There has long been a tradition in multilateral surveillance to focus on exchange rates and external stability. Given that policies to improve domestic demand
have principally supported global growth during this crisis, it will be instructive to compare and determine how these policies can spill over or may have spilled over across jurisdictions."
"In the current challenging and highly interconnected global economic environment, it is critical to have effective surveillance to enable the early detection of risks and provide timely policy advice," Ms. Lagarde said.
The IMF's assessment could help give weight to debates in the international arena over countries' economic policies. Trying to stabilize an off-kilter global economy last year, the Group of 20 largest industrialized and developing economies looked to the IMF to help establish a basic set of economic measurements that would help the G-20 gauge when a country's policies were potentially destabilizing. …