See ISR Background Paper Annex I, which provides a listing of Board engagements on surveillance priorities from 2014–17.
This review does not include an assessment of the legal framework, which will be considered in the 2019 CSR.
See Background Paper for details on the MD’s Action Plan.
The ISR assessment also considered the findings from the 2017 Risk Report.
The survey of Board members sought consolidated responses from each Executive Director’s Office.
The survey of staff solicited views of mission chiefs.
The ISD provides that “Members shall consult with the Fund regularly under Article IV to enable the Fund to …discuss with members the impact of their policies on the operation of the international monetary system,” and that such consultations “shall include a discussion of the spillover effects of a member’s exchange rate and domestic economic and financial policies that may significantly influence the effective operation of the international monetary system, for example, by undermining global economic and financial stability” (para. 26). More broadly, as noted in the Guidance Note for Surveillance Under Article IV Consultations, “in other cases, the staff can discuss outward spillovers unless the authorities object” (Footnote 11). Coverage of all types of outward spillovers was assessed in this review.
The five key areas encompass the current account, real exchange rate, capital flows and policy measures, foreign exchange intervention and reserve levels, and external balance sheets.
A fiscal stress test, combined with a fiscal risk management toolkit for policymakers were developed in the May 2016 Board paper “Analyzing and Managing Fiscal Risks—Best Practices.“
See Chapter 2 of the LIDC report, to be discussed by the Board in March.
See Staff Discussion Note “Second-Generation Fiscal Rules: Balancing Credibility, Simplicity and Flexibility.”
In the context of the 2017 Review of the Standards and Codes (S&C) Initiative, Directors generally concurred that the Fiscal Transparency Code provides a good way forward, including its outcome-focused, modular, and graduated approach, to increase the relevance of Fund-set transparency S&C.
For examples of FTE inputs to country specific Policy Notes/staff reports, see Table II. 1 in the “2017 Review of the Standards and Codes Initiative- Policy Area Background Paper.”
Recent WEOs have covered potential output and labor and product market reforms’ impact on growth and employment in advanced economies, while the Fiscal Monitor has considered how the tax system may affect resource misallocation and productivity. REOs have focused on prospects for closing the productivity gap in Asia and reform implementation in emerging Europe to raise productivity and promote faster income convergence.
For example, Fiscal Monitor, Chapter 2: Upgrading the Tax System to Boost Productivity, April 2017 and WEO Chapter 3: Time for a Supply-side Boost? Macroeconomic Effects of Labor and Product Market Reforms in Advanced Economies, April 2016.
A companion “Indicators Digest” compiles characteristics of selected indicators to inform staff judgment about their use.
See Background paper, which includes assessment of resource costs.
The CSR will include a comprehensive assessment of the impact and traction of Fund policy advice.
The twice-yearly VE identifies emerging country-level risks, reflecting both staff’s judgment and indicators. In December 2014, the Board was briefed on the ongoing updates to the VE’s underlying methodology, country coverage, and integration with other risk-based work at the Fund. The 2017 reference note on “Assessing Country Risk—Selected Approaches” describes some of the approaches used by staff to examine systemic risks, provides a high-level view of the theory and methodologies employed, and is accompanied by an on-line technical guide.
October 2017, Fiscal Monitor.
The RBM framework is described in the 2018 Quinquennial Review of the Fund’s Capacity Development Strategy—Concept Note.
The 2016 IEO report advocated formulation of a long-term overarching data strategy that recognizes data as a strategic institutional asset.