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You are looking at 1 - 10 of 15 items for :

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Cover Policy Papers
Assessing Reserve Adequacy - Specific Proposals
International Monetary Fund
Reserves have a central place in the policy tool kit of most economies, providing insurance against shocks. In conjunction with sound policies, they can help reduce the likelihood of balance of payment crises and preserve economic and financial stability. Reserves, however, can result from both precautionary and non-precautionary policy objectives and institutional settings. While they can bring several important benefits, reserve holdings can sometimes be costly. This paper brings together recent Fund work on reserve adequacy issues aiming to strengthen their discussion in bilateral surveillance. Despite the ongoing debate on reserve issues, there is little consensus about how to assess reserve holdings in different economies, even though this is an important aspect of a member’s external stability assessment. The work stream of which this paper is part aims to fill this gap by outlining a framework for discussing reserve adequacy issues in different economies. In this regard, the paper also forms part of the Fund’s response to the 2012 IEO evaluation of the Fund’s advice related to international reserves, which recommended, inter alia, that assessments of international reserves in bilateral surveillance reports should be more detailed and reflect country circumstances. To this end, the paper proposes that, where warranted, individual country Article IV reports include a fuller discussion of the authorities’ stated objectives (precautionary and non-precautionary) for holding reserves, an assessment of the reserve needs for precautionary purposes, and a discussion of the cost of reserves. The aim would be to ensure evenhandedness so that countries with similar circumstances are assessed in similar ways, while allowing the depth and emphasis of this discussion to vary depending on country conditions and needs
Keywords:
PP; broad money; reserve adequacy; adequacy issue; exchange rate; mature economy; foreign exchange; balance of payments; central bank; precautionary motive; short-term debt; reserve currency; bond yield; external shock; Assessing reserve adequacy (ARA); Reserve positions; Capital controls; Currencies; Global; ADEQUACY purposes country; crisis probability; Reserves accumulation
Cover What Have We Learned? Macroeconomic Policy After the Crisis
What Have We Learned? Macroeconomic Policy After the Crisis
International Monetary Fund

Abstract

Since 2008, economic policymakers and researchers have occupied a brave new economic world. Previous consensuses have been upended, former assumptions have been cast into doubt, and new approaches have yet to stand the test of time. Policymakers have been forced to improvise and researchers to rethink basic theory. George Akerlof, Nobel Laureate and one of this volume’s editors, compares the crisis to a cat stuck in a tree, afraid to move. In April 2013, the International Monetary Fund brought together leading economists and economic policymakers to discuss the slowly emerging contours of the macroeconomic future. This book offers their combined insights.

The contributors consider the lessons learned from the crisis and its aftermath. They discuss, among other things, post-crisis questions about the traditional policy focus on inflation; macroprudential tools (which focus on the stability of the entire financial system rather than of individual firms) and their effectiveness; fiscal stimulus, public debt, and fiscal consolidation; and exchange rate arrangements.

Keywords:
BOOK; monetary policy; price; inflation targeting; central bank; capital; inflation expectation; capital control; inflation-targeting framework; house price; economic system; Exchange rate arrangements; Capital controls; Capital flows; Capital inflows; Global; Europe; Asia and Pacific; Africa; Eastern Europe; fiscal policy multiplier; government expenditure multiplier; stabilization target; Macroprudential policy; Caribbean
Cover Policy Papers
Assessing Reserve Adequacy - Further Considerations - Supplementary Information
International Monetary Fund
NULL
Keywords:
PP; exchange rate; opportunity cost; market dysfunction; foreign exchange; exchange market pressure; reserve currency; financial crisis; market economy; spot market; risk premium; Currency markets; Assessing reserve adequacy (ARA); Currencies; Reserve positions; Global
Cover Policy Papers
Borrowing Agreement with the Swedish Riksbank
International Monetary Fund
This paper reviews the Fund’s income position for FY 2010 and FY 2011. The paper updates projections provided at the FY 2010 midyear review and sets out related proposed decisions for the current and next financial years. The paper is structured as follows: Section II reviews the FY 2010 income position and the main changes from the midyear projections; Section III makes proposals on the disposition of FY 2010 net income, which includes the General Resources Account (GRA) net operational income and profits from the limited gold sales; Section IV discusses the FY 2011 income outlook, the margin on the rate of charge, and projected burden sharing adjustments; and Section V reviews special charges.
Keywords:
PP; fund; agreement; SDR; amount; maturity date; indebtedness to the Riksbank; fund's indebtedness; SDR- denominated amount; fund's notice; fund's ability; Freely usable currencies; Interest payments; Exchange rate arrangements
Cover IMF Staff Country Reports
Republic of Latvia: Request for Stand-By Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Latvia
International Monetary Fund
This paper discusses a request from the Republic of Latvia for a Stand-By Arrangement. The Latvian authorities are launching a decisive economic reform program and are seeking substantial international financial assistance to quell the crisis. With international reserves falling precipitously and reserves barely covering base money, the authorities are now seeking IMF assistance under the emergency financing procedures. The proposed IMF-supported program is part of a coordinated international effort. The program is centered on maintaining Latvia’s exchange rate peg through strong domestic policies and substantial international financial assistance.
Keywords:
ISCR; CR; authority; fund; Latvia; state administration; bank; accession to the EU; exchange rate peg; Latvia's competitiveness; government's budget; Commercial banks; Exchange rates; Loans; Global; Baltics
Cover IMF Staff Country Reports
Hungary: Selected Issues
International Monetary Fund
This Selected Issues paper reviews indicators for external competitiveness in Hungary. The paper examines recent developments in a range of indicators. These include regional comparisons of wage and unit labor cost developments, and standard indicators based on price and cost-based measures of the real effective exchange rate (REER). In addition, the paper discusses actual export performance and market shares, profitability indicators, and business survey results. The equilibrium exchange rate is estimated. The paper also analyzes financial sector regulatory governance in Hungary.
Keywords:
ISCR; CR; exchange rate; Hungary; independence; market share; equilibrium exchange rate; export profitability; FSA law; vis-à-vis euro; Board decision; Hungary's REER; unit labor cost; regained competitiveness position; equilibrium REER; Real effective exchange rates; Financial stability assessment; Exchange rates; Competition; Export performance; Global
Cover IMF Working Papers
International Financial Integration
Mr. Philip R. Lane and Mr. Gian M Milesi-Ferretti
In recent decades, the foreign assets and liabilities of advanced economies have grown rapidly relative to GDP, with the increase in gross cross-holdings far exceeding changes in the size of net positions. Moreover, the portfolio equity and FDI categories have grown in importance relative to international debt stocks. This paper describes the broad trends in international financial integration for a sample of industrial countries and seeks to explain the cross-country and time-series variation in the size of international balance sheets. It also examines the behavior of the rates of return on foreign assets and liabilities, relating them to "market" returns.
Keywords:
WP; MSCI world return index; U.S. dollar; market value; stock market index; International investment position; rates of return; portfolio equity assets; bond return; MSCI return index; asset trade; stock market index return; MSCI world stock return index; return on assets; Foreign assets; Stocks; Stock markets; Foreign liabilities; Real exchange rates; Global
Cover Capital Account Liberalization and Financial Sector Stability
Capital Account Liberalization and Financial Sector Stability
International Monetary Fund

Abstract

This paper analyzes the linkages between capital account liberalization and other policies influencing financial sector stability. Drawing on country experiences, the paper develops an operational framework for sequencing and coordinating capital account liberalization with other policies aimed at maintaining financial sector stability. Based on the general principles, a methodology for sequencing capital account liberalization is presented in this paper. This methodology, which is illustrated by an example, involves an assessment of capital controls and macroeconomic and financial sector vulnerabilities, and the design of a plan for sequencing capital account liberalization with financial sector reforms and other policies. Financial systems that have been weakened by inappropriate government involvement also face additional risks when operating in international financial markets. The absence of significant macroeconomic imbalances and the high level of official international reserves at the outset of the crisis also appear to be important factors preventing a full-blown exchange crisis. Nevertheless, the prolongation of the crisis lowered economic growth and ultimately led to a recession and increased the total cost of the crisis resolution.

Keywords:
OP; liberalization; market; bank; financial system; capital account liberalization; liberalization process; market liquidity; market discipline; policy advice; Capital account liberalization; Capital flows; Commercial banks; Africa; Global; North America; foreign currency; Financial sector
Cover IMF Staff Country Reports
Republic of Latvia: Staff Report for the 2000 Article IV Consultation and First Review Under the Stand-By Arrangement
International Monetary Fund
With the resumption in growth, the economic recession triggered by the Russian crisis has ended. Additional efforts will be needed to reduce the current account deficit and increase its financing. The IMF staff commend the intention to streamline tax benefits granted to enterprises and to eliminate the benefits that are inconsistent with EU regulations. Financial sector development is imperative for continued external sustainability and economic growth. The government’s ability to implement the privatization program and address the remaining impediments to an enabling business climate is crucial.
Keywords:
ISCR; CR; contingency expenditure reduction; government; May; minister of finance; end-June target of LVL; end-June target; draft law; consumer inflation; Latvian authorities; Current account deficits; Commercial banks; Privatization; Foreign direct investment; Pension spending; Baltics