Avoiding Fragmentation of Global Financial Governance

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Regions of the world have developed an increasing number of financial arrangements to underpin the stability of capital markets and combat crises. But these arrangements vie for influence over international finance with the International Monetary Fund (IMF), as has been dramatically illustrated during the euro crisis, and threatens to fragment global financial governance. This article reviews the regional financial arrangements (RFAs) and their relationships to the IMF, examines the sources of conflict between these institutions, draws lessons from the euro crisis for institutional cooperation, and proposes a set of guidelines and principles to avoid fragmentation of financial governance in the future.