The SDR: Giving An Old Idea New Life

2019-03-25T15:03:18-04:00June 2, 2017|

By IMFBlog

June 2, 2017

The IMF’s Special Drawing Right, or SDR, was created more than 50 years ago and used only by IMF member countries to supplement their official reserves. The SDR’s value is based on a basket of five major currencies—the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound. In this podcast, Mohamed El-Erian, Chief Economic Advisor at the financial services firm Allianz, and a former deputy director at the IMF, says an expanded use of the SDR in global markets could help […]

Speed Limits for Financial Markets? Not So Fast

2019-03-25T15:06:55-04:00June 1, 2017|

By IMFBlog

June 1, 2017

Traders on the floor of the New York Stock Exchange (photo: Andrew Kelly/Reuters/Newscom)

On the afternoon of May 6, 2010, a financial tsunami hit Wall Street. Stunned traders watched as graphs on their computer screens traced the vertiginous 998-point plunge in the Dow Jones Industrial Average, which erased $1 trillion in market value in 36 minutes.

There was little in the way of fundamental […]

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