The IMF's External Sector Report assesses global current account imbalances, exchange rate developments, and external sustainability, providing policy recommendations to promote balanced, non-inflationary growth and reduce vulnerabilities in the international _____ system.
- trade
- monetary
- banking
- investment
Answer: monetary
The Report analyzes spillovers from major economies' policies, capital flow volatility, and reserve adequacy. It advocates for coordinated macroeconomic policies, flexible exchange rates, and strong financial frameworks to enhance stability, prevent crises, and support sustainable global growth.