Cover IMF Staff Country Reports
The United States: Spillover Report: 2011 Article IV Consultation
Author: International Monetary Fund
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2011: Issue 203
Language:
English
Publication Date:
25 Jul 2011
DOI:
https://doi.org/10.5089/9781462317349.002
ISBN:
9781462317349
ISSN:
1934-7685
Pages:
77
Keywords:
ISCR; CR; interest rate; financial market; exchange rate risk; market response; risk premium; credit default swap; global bond; asset price; Treasury yield; banking sector; Spillovers; Emerging and frontier financial markets; Yield curve; Exports; Global; Europe; Central America
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The size of the U.S. economy and, in particular, the global dominance of its financial markets creates uniquely large policy spillovers. Concerns that the end of QE2 could lead to a rapid reversal of emerging market capital flows appear overblown. A credible plan for a gradual U.S. fiscal consolidation would likely have limited short-term spillovers and substantial longer-term benefits. Overall, U.S. and foreign goals appear better aligned for U.S. fiscal and financial policies than for monetary policies. Fiscal consolidation and sounder financial regulation will help.
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund