All Hands on Deck: Confronting the Challenges of Capital Flows

2019-03-25T10:54:38-04:00August 2, 2017|

By Atish R. Ghosh, Jonathan D. Ostry, and Mahvash S. Qureshi

August 2, 2017

Versions in  Español (Spanish)

Exchange rates board, Australian Securities Exchange: Emerging economies have several tools to manage capital flows. The most common are foreign exchange intervention and monetary policy (photo: wx-bradwang/iStock by Getty Images)

The global financial crisis and its aftermath saw boom-bust cycles in capital flows of unprecedented magnitude. Traditionally, emerging market economies were […]

Watch This (Fiscal) Space: Assessing Room for Fiscal Maneuver in Advanced Countries

2017-04-15T14:34:04-04:00September 1, 2010|

Today, fiscal problems are a key concern of policy makers in many industrial countries, and a reassessment of sovereign risk is a palpable threat to global recovery. At the heart of the issue is the extent to which governments have room for fiscal maneuver—“fiscal space”—before markets force them to tighten policies sharply and, relatedly, the size of adjustments needed to restore or maintain public debt sustainability. Yet, much of the talk about fiscal space—how to measure it and the policy implications—has so far been rather fuzzy. In this blog, Jonathan Ostry discusses a new staff position note that he co-authored with several IMF colleagues, which aims to remedy this by providing an operational definition of the fiscal space concept as well as estimates of fiscal space for 23 advanced economies.
Go to Top