The SDR: Giving An Old Idea New Life

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 to strengthen the world economy. Continue reading “The SDR: Giving An Old Idea New Life” »

By | June 2nd, 2017|Financial markets, financial policy, IMF, technology, trade|0 Comments

The Elusive Quest for International Policy Cooperation

By Olivier Blanchard, Atish R. Ghosh, Mahvash S. Qureshi

As with previous crises, the global financial crisis has prompted greater calls for international policy cooperation, but it still remains very much like Nessie, the lovable Loch Ness monster: oft-discussed, seldom seen. To reflect on the obstacles to international policy cooperation, and how to make progress, the IMF recently hosted a panel discussion, Toward a More Cooperative International Monetary System: Perspectives from the Past, Prospects for the Future, with Maurice Obstfeld (CEA; University of Berkley), José Antonio Ocampo (Columbia University), Alexandre Swoboda (The Graduate Institute, Geneva), and Paul Volcker (Former Chairman, Federal Reserve).

Continue reading “The Elusive Quest for International Policy Cooperation” »

iMFdirect—Our Top 10 Posts

As iMFdirect looks back at two years since our blog on global economics was launched in August 2009, we've compiled a list of the posts that have drawn the most attention.

Global Challenges, Global Solutions

The April 2011 IMF-World Bank Spring Meetings are upon us here in Washington DC. With global challenges that require global solutions—the theme of the meetings—IMF Managing Director Dominique Strauss-Kahn reminds us that this is “not the time for complacency.” Here’s a snapshot of what you need to know to get you through the meetings….

Nanjing and the New International Monetary System

I am delighted to be back in China this week for a high-level seminar in Nanjing on the international monetary system. Every time I come to this part of the world, I am impressed by the dynamism of the economies and the optimism of the people. The region’s economic performance over the past few decades has been nothing short of remarkable. To sustain this progress, Asia needs to grapple with numerous challenges today and these relate directly to our discussions in Nanjing. The current international monetary system has certainly delivered a lot. But it also has flaws that need to be fixed, especially if the next phase of globalization is to succeed in bringing a strong and broad-based increase in living standards. I see four pressing issues.

All Eyes on Paris and the G-20

As G-20 Finance Ministers and Central Bank Governors gather in Paris this weekend, their meeting—the first ministerial level meeting of France’s G-20 presidency—comes at a critical juncture, critical for the global economy, with tensions and risks emerging that require strong policy responses, and critical for ensuring actions on international policy cooperation and reform. So, with all eyes turning to Paris, here is some recommended reading for G-20 watchers.

A Stronger Financial Architecture for Tomorrow’s World

The international monetary system is a topic that encompasses a wide range of issues—reserve currencies, exchange rates, capital flows, and the global financial safety net, to name a few. Some are of the view that the current system works well enough. I take a less sanguine view. Certainly the world did not end with the crisis that began in 2008 and a recovery is under way. But, it is not the recovery we wanted—it is uneven, unemployment is not really going down, there are widening inequalities, and global imbalances are back. Reform of the international monetary system may be wide-ranging and complex. But concrete reforms are needed to achieve the kind of well-balanced and sustainable recovery that the world needs, and to help prevent the next crisis.

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