The Global Financial Safety Net (GFSN) is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their impacts. It has four main elements: countries’ own international reserves; bilateral swap arrangements whereby central banks exchange currencies to provide liquidity to banking systems; regional financial arrangements (RFAs) by which countries pool […]
By Laurissa Mühlich, Marina Zucker-Marques and Barbara Fritz In an era of mounting debt pressures, climate shocks and volatile international trade policies, timely and reliable financial resources are critical to stabilize economies without sacrificing essential public spending and development goals. To address this, crisis financing is provided through the Global Financial Safety Net (GFSN)—a network that includes […]
By Marina Zucker-Marques, Laurissa Mühlich, and Barbara Fritz In a world beset by lower growth prospects, unprecedented uncertainty in international trade and high debt service pressures, access to timely financial resources is essential for central banks and governments in order to stabilize their economies without compromising spending on domestic priorities. This crisis financing comes from […]
The Global Financial Safety Net (GFSN) is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their impacts. It has four main elements: countries’ own international reserves; bilateral swap arrangements whereby central banks exchange currencies to provide liquidity to banking systems; regional financial arrangements (RFAs) by which countries pool […]
Quotas are at the core of the International Monetary Fund (IMF)’s finances and governance. Beyond serving as the IMF’s primary funding source to support IMF lending and operations, quotas shape members’ access to financing, allocation of Special Drawing Rights (SDRs) and voting power. This year, the IMF stands at a crossroads as it is set to […]
By Laurissa Mühlich, Barbara Fritz and William N. Kring Following the COVID-19 pandemic, low- and middle-income countries (LICs and MICs, respectively), and in particular lower MICs, have recovered more slowly than high-income countries (HICs). LICs and MICs continue to struggle with tighter fiscal constraints in a period when they should be scaling up investments to […]
By Marina Zucker-Marques, Laurissa Mühlich, Barbara Fritz, Thomas Goda What once consisted of only the International Monetary Fund (IMF) has become a complex, multilayered and non-coordinated network of institutions aimed at supporting countries during times of financial distress. This network is known as the Global Financial Safety Net (GFSN), and comprises the IMF, regional financial […]
Since the 2007-09 global financial crisis, central bank currency swaps have become a crucial element of the Global Financial Safety Net (GFSN)—the set of institutions and arrangements that backstop countries in financial distress. These swaps, where credit lines between central banks aim to provide liquidity to stabilizing markets during turmoil, have two key advantages: immediate […]
The Global Financial Safety Net (GFSN) is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their impacts. It has four main elements: countries’ own international reserves; bilateral swap arrangements whereby central banks exchange currencies to provide liquidity to banking systems; regional financial arrangements (RFAs) by which countries pool […]
By Manuel Cruz On Thursday, March 21, the Boston University Global Development Policy Center hosted Manuela Moschella, Professor of Political Science at the University of Bologna, to present the main ideas of her forthcoming book, “Unexpected Revolutionaries: How Central Banks Made and Unmade Economic Orthodoxy.” In her discussion, Moschella explained the institutional transformation of central […]