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Tag Archives: Integrated Policy Framework

Fit for Purpose—Adapting IMF Advice to a New Economic Landscape

By Fabian Bornhorst and Ceyla Pazarbasioglu عربي, Русский The International Monetary Fund is responding to the policy challenges of a fast-changing global economy still reeling from the COVID-19 crisis: it is modernizing the way it provides its regular policy advice to member countries—a process known as surveillance. The regular health check of members’ economies, known as the Article IV consultations, will continue to cover fiscal, monetary, exchange rate and financial issues, which are at...

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What to do When Low-for-Long Interest Rates are Lower and for Longer

By Tobias Adrian Central banks have played a pivotal role in easing financial conditions in response to the COVID-19 shock, and helped avert a catastrophic downturn. However, their work is far from done. Yet more monetary stimulus will be needed to support economic recovery, and central banks are implementing innovative new strategies to provide it. Policymakers must weigh the pros of more stimulus today against the cons of higher financial stability risks in the future. While the new...

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Navigating Capital Flows—An Integrated Approach

By Tobias Adrian, Gita Gopinath, Ceyla Pazarbasioglu عربي, 中文, Español, Français, 日本語, Português, Русский  In a continuous effort to help countries manage volatile cross-border capital flows, the IMF has taken a major step toward a new analytical macroeconomic framework that can guide appropriate policy responses. The work reflects evolving thinking on macroeconomic policy and will feed into the upcoming review of the IMF’s Institutional View on the Liberalization and Management of Capital...

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Toward an Integrated Policy Framework for Open Economies

By Tobias Adrian and Gita Gopinath While capital mobility provides many benefits, capital flows to emerging market and developing economies are often volatile and depend critically on global financial conditions. The risks posed by volatile capital flows to macroeconomic and financial stability are often difficult to address with conventional monetary policy tools. Hence, policymakers have complemented interest rate policy with additional tools—including foreign exchange intervention, capital...

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