"This Briefing Paper reviews the causes for the current financial crisis, its effects on the world economy, and in particular the social costs for developing countries. It argues for global financial reforms that tilt the balance in favor of the democratic state over financial markets. Special attention is given to a revision of the Basel II's Three Pillars, and the creation of comprehensive market regulation to increase transparency and reduce market risk. To relieve the immediate crisis, the paper argues for additional liquidity measures targeted at the interbank market, and fiscal stimulus packages. The briefing paper summarizes the recommendations of a meeting of senior economic authorities hosted by Nobel Laureate Joseph Stiglitz of IPD on November 13, 2008 in New York."

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