Capital Markets Regulation Is Stronger, but Some Gaps Still Must be Closed
Countries have made substantial progress toward implementing capital markets regulatory reform, but important gaps remain and new challenges have raised the bar.
From 1980s Debt Crisis to Crypto Era, Financial Stability Monitoring is Always Evolving
The IMF’s Global Financial Stability Report, introduced in 2002, was a step toward a more comprehensive assessment of risks in financial markets and cross-border capital flows.
Chart of the WeekDollar Dominance and the Rise of Nontraditional Reserve Currencies
The US dollar has long played an outsized role in global markets. It continues to do so even as the American economy has been producing a shrinking share of global output over the last two decades.
Financial Stability Risks Grow as War Complicates Push to Contain Inflation
While no systemic event has materialized so far, the balance of risks has tilted more firmly to the downside.
Emerging-Market Banks’ Government Debt Holdings Pose Financial Stability Risks
Banks’ holdings of sovereign debt rise to a record as governments spend to cushion pandemic impact.
First Global Bank Stress Test Highlights Increased Financial Resilience
The world’s banking systems saw significant capital increases ahead of the pandemic and are resilient to very large shocks.
Why the IMF is Updating its View on Capital Flows
In some circumstances, countries should have the option of pre-emptively curbing debt inflows to safeguard macroeconomic and financial stability.
Low Real Interest Rates Support Asset Prices, But Risks Are Rising
A large and sudden jump in real interest rates could lead to a further selloff in stocks.
Emerging-Market Central Bank Asset Purchases Can Be Effective but Carry Risks
Asset purchases can be an effective tool, but it is critical to minimize risks to central bank independence and price stability.
Chart of the WeekThe World’s Top Recipients of Foreign Direct Investment
A Japanese automobile manufacturer builds an assembly plant in Mexico. An Italian software company opens a sales office in Kenya to reach the Kenyan market with their services.