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Tag Archives: Debt

When Disaster Strikes: Preparing for Climate Change

By Seán Nolan and Krishna Srinivasan Earlier this year, Cyclone Idai devastated Mozambique, Malawi, and Zimbabwe by leaving more than 1,000 people dead, thousands more missing, and damages in the billions. These storms were among the recent reminders of how natural disasters can cause severe and catastrophic damage. Natural disasters destroy lives and property and have large and lasting effects on economies by reducing production and increasing debt burdens. They also tend to...

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Chart of the WeekMapping the World’s Financial Weak Spots

By IMFBlog Español, Português Where will the next financial crisis come from? The short answer is: We don’t know. We can, however, look for vulnerabilities in the system that, if left untreated, can develop into problems. What do we mean by a vulnerability? It is an area of weakness that can amplify and spread an unexpected economic shock, increasing the level of risk to the financial system. Imagine the impact of an earthquake on a house built on sand, as opposed to bedrock. In the...

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A Review of IMF-Supported Lending Programs

By Petya Koeva Brooks, Martin Mühleisen, and Chad Steinberg The IMF’s Review of Program Design and Conditionality provides a deep look into the design of 133 IMF-supported lending programs in operation between September 2011 and December 2017. This review is the first major stocktaking of IMF programs since the Global Financial Crisis, a period of unexpectedly slow economic growth. Programs as shock absorbers Countries often come to the IMF when they already face major threats to economic...

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Financing for Sustainable Development: Tackling Big Challenges

By Chris Lane Français (French) Without adequate financing, the best intentions of the global community expressed in the Sustainable Development Goals (SDGs) will remain beyond reach. Recent setbacks in financing for development should therefore focus policymakers’ attention on the need for decisive national strategies so these best intentions might be realized. Harnessing the necessary resources could be achieved through a combination of revenue mobilization, attracting private finance,...

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The IMF 30 Years After Brady

By Rhoda Weeks-Brown and Martin Mühleisen Last month marked the 30th anniversary of the announcement of the “Brady plan”. In response to the 1980s Latin American debt crisis, this plan, named after then US Treasury Secretary Nicholas Brady, allowed countries to exchange their commercial bank loans for bonds backed by US Treasuries, bringing an end to a tumultuous period with possible systemic consequences for the global banking system at the time. In what was then a novel approach, banks...

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High Debt Hampers Countries’ Response to a Fast-Changing Global Economy

By Vitor Gaspar, John Ralyea, and Elif Ture عربي, 中文, Español, Français, 日本語, Português, Русский Economic growth is slowing and public debt remains high across the world. Meanwhile, demographic changes and technological advances are reshaping the global economy. Everyone’s opportunities for a good education, along with their job prospects, healthcare, and retirement income depend on the tax and spending choices governments make as they respond to these challenges. What should policymakers...

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The Global Economy: A Delicate Moment

By Gita Gopinath عربي, 中文, Español, Français, 日本語, Português, Русский A year ago, economic activity was accelerating in almost all regions of the world. One year later, much has changed. The escalation of US–China trade tensions, needed credit tightening in China, macroeconomic stress in Argentina and Turkey, disruptions to the auto sector in Germany, and financial tightening alongside the normalization of monetary policy in the larger advanced economies have all contributed to a...

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Latin America and the Caribbean in 2019: A Moderate Expansion

By Alejandro Werner Español, Português Economic activity in Latin America continues to rise, but at a slower rate than previously anticipated. The weakening global economy and rising policy uncertainty are contributing to slowing Latin America’s growth momentum. Overall, the region is expected to advance by 2 percent in 2019 and 2.5 percent in 2020—still well below peer countries in other regions. A tightening of global financial conditions and lower commodity prices brought on by...

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Building Defenses Against the Next Economic Downturn

By David Lipton عربي, Français,  日本語, Русский The global economy faces a number of complex challenges from technological change and globalization, and the lingering effects of the 2008-9 financial crisis. At the same time, we are witnessing lower levels of trust in the core institutions that have helped to deliver tremendous growth and prosperity over the past 40 years. These developments threaten to fragment the international order that has governed the global economy. History suggests...

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Countries in the IMF Financial Spotlight in 2019

By IMFBlog In 2019, the IMF will complete 14 assessments under the Financial Sector Assessment Program (FSAP). Eight of this year’s assessments are mandatory: Australia, Austria, Canada, France, Italy, Poland, Singapore, and Switzerland. The other six are voluntary: Algeria, Bahamas, Kuwait, FYR Macedonia, Malta, and Thailand. The FSAP is an in-depth analysis of a country’s financial sector. It serves as the principal tool for assessing countries’ financial stability. The IMF conducts about...

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