Global Safety Nets: Crisis Prevention in an Age of Uncertainty

By Reza Moghadam

Though the recent global crisis started in the advanced economies, most emerging markets came under pressure; it seemed that no country, especially those most interconnected, was immune from tremendous economic strain. Now, as the crisis abates, there is an emerging consensus that something needs to be done. A better safety net is needed to enable countries with good policies to insure against bad outcomes, especially when they are innocent bystanders caught up in a financial turmoil.

Last week, the IMF took another step toward meeting this need by enhancing its country insurance facilities. Continue reading

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