The Short-term Liquidity Line: A New IMF Tool to Help in the Crisis

2020-04-23T16:39:25-04:00April 22, 2020|

By Geoffrey Okamoto

عربي,  中文, Español, Français, 日本語, Português, Русский

Challenging times for emerging markets

The COVID-19 pandemic has severely disrupted the global economy at every level. Across the world, financial conditions have tightened dramatically, with unprecedented portfolio outflows from emerging markets in terms of both size (a record of about $100 billion) and speed, and markets effectively frozen in some cases. […]

Going with the Flow: Benefits of Capital Inflows for Emerging Markets

2019-03-26T14:25:23-04:00December 6, 2016|

deniz-igan-imfBy Deniz Igan

Michael Mussa, a former Chief Economist of the IMF, famously likened capital account liberalization to fire. In his comments at the IMF Economic Forum on October 2, 1998, he said: “Fire warms our homes, it cooks our food, our internal combustion engines,” and continued: “No doubt, fire is very useful, and we are not going to give up its manifold benefits. On the other hand, fire can also burn you down and do a great deal of damage.”

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Dealing with Uncertain Economic Times: The Outlook for Asia

2017-04-15T14:18:33-04:00October 13, 2011|

Recent large equity sell-offs across Asia and safe haven flows into Japan illustrate perfectly the region’s vulnerabilities to further global shocks. While the region’s fundamentals—built up over the past decade—remain relatively strong, economic uncertainties in Europe and the United States pose large downside risks. The world economy has entered a dangerous new phase and, as the IMF’s Managing Director stated recently, “what makes the situation all the more urgent is that it has implications for every country.” Our Regional Economic Outlook for Asia and the Pacific emphasizes these risks, and stresses the need for policymakers to remain vigilant and nimble in this extraordinarily uncertain climate. The view from here in Tokyo—looking out at the region—may be more serene than the view from other advanced country capitals, but there are storm clouds on the horizon.
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