It’s Hip to Be Square—Why Good Financial Sector Supervision Is Important

Posted on May 27, 2010 by iMFdirect

As the financial crisis taught us, supervision is incredibly important. Countries with the same set of rules had very different experiences during the crisis. Why? There are clearly many reasons but one of them is “better supervision.” After all, rules are only as good as their implementation. In some countries, the financial supervisor became the unsung hero of the crisis. One might say “It’s hip to be square!”

Filed under: Financial Crisis, Financial regulation, Fiscal Stimulus, growth, IMF, Multilateral Cooperation, recession | Tagged: , , , | 2 Comments »

Downturn After Boom: Slow Credit Growth in Middle East, North Africa

Posted on May 25, 2010 by iMFdirect

Slow credit growth in the Middle East and North Africa may be constraining the strength of the recovery in the short run, in addition to limiting prospects for longer-term growth. Policymakers are understandably concerned.

Filed under: Economic Crisis, Economic research, Financial Crisis, IMF | Tagged: , , , , , , , , , , , , , , , , , , , , | 4 Comments »

Asia: The Challenge of Capital Inflows

Posted on May 18, 2010 by iMFdirect

History has shown that persistent and large capital inflows can be a double edged sword. While they bring with them numerous benefits, they do pose risks and policy dilemmas. Continued large capital flows pose, for example, the risk of overheating and runups in asset prices that may subsequently render the region vulnerable to outflows and asset price busts.

Filed under: Asia, Economic Crisis, Economic research, Financial Crisis, IMF | Tagged: , , , , , , , , , , , | 1 Comment »

Asia: Exiting from Stimulus in an Uncertain World

Posted on May 12, 2010 by iMFdirect

With Asia recovering ahead of and faster than advanced economies, policy conditions in the region will need to start normalizing sooner than in several other parts of the world. But the fragility of the global recovery means that the withdrawal of stimulus will have to be cautious and gradual.

Filed under: Asia, Economic Crisis, Economic research, Fiscal Stimulus, growth, IMF | Tagged: , , , , , , | 1 Comment »

Does Cheap Foreign Money Bring Risks for Latin America?

Posted on May 4, 2010 by iMFdirect

By Nicolás Eyzaguirre Versión en Español Not so long after the global financial crisis, the supply of foreign financing has become abundant, and cheap, for many emerging market countries.  This sounds like good news for Latin America, and it is—creating opportunities for debt management, saving on interest paid to foreigners, and expanding opportunities for investment.  But [...]

Filed under: Advanced Economies, Economic Crisis, Emerging Markets, growth, Latin America | Tagged: , , , , , , , , | 4 Comments »

Key Links for the Greek Financing Package

Posted on May 2, 2010 by iMFdirect

Greece announced May 2 it had reached agreement with the International Monetary Fund (IMF), the European Commission, and the European Central Bank (ECB) on a targeted program to stabilize its economy, become more competitive, and restore market confidence with the support of a €110 billion (about $145 billion) financing package. Negotiators over the weekend wrapped up details of the package, involving budget cuts, a freeze in wages and pensions for three years, and tax increases to address Greece’s fiscal and debt problems, along with deep reforms designed to strengthen Greece’s competitiveness and revive stalled economic growth.

Filed under: Economic Crisis, Europe, IMF, International Monetary Fund, Multilateral Cooperation | Tagged: , , , , , , | 2 Comments »

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