Category: FINANCIAL STABILITY

What to Expect: Brazil’s G20 Presidency

By Tim Hirschel-Burns On December 1, 2023, Brazil took over the presidency of the Group of 20 (G20) from India (the recent addition of the African Union as a permanent member means the forum has 21 members, but for now it’s still being called the G20). Brazil’s presidency—its first time heading the organization—will include over […]

Leading by Design: Asian Lessons for Monitoring Global Financial Stability

The Global Financial Safety Net (GFSN) has been dramatically reshaped since 2000. While the International Monetary Fund (IMF) is still the world’s largest and most capable provider of emergency liquidity, as well as the only one that operates at a global level, it is now flanked by multiple regional financial arrangements (RFAs) whose combined lending […]

On Par: A Money View of Stablecoins

The rapid growth in stablecoin issuance and the recent testing of stablecoins’ par settlement promises has provoked a flurry of papers proposing various forms of regulation and alternatives, from various vantage points. However, how do stablecoins hold up from the vantage point of the money view, which focuses attention on the mechanism of settlement and […]

6 Charts on Climate Impacts in 6 Central American and Caribbean Countries

By Samantha Igo Within 24 hours in late October, Hurricane Otis, in defiance of forecasting models, increased windspeed by 115 mph and made landfall in Acapulco, Mexico as a Category 5 hurricane. In addition to the devastating loss of life, insurance analysts have estimated “insurable” losses in Acapulco and the surrounding area to be as […]

Shrinking the Eurosystem’s Footprint without Offshoring the Euro

Euro area central banks are reporting losses as they pay banks 4 percent but collect only 1 percent on trillions of euros of bonds bought to spur growth with lower yields. Once central banks exhaust their capital, they may need to go to their governments. Recently, the European Central Bank (ECB) ceased to pay interest […]

The IMF Should be an Analytical Partner on the UN Global Stocktake – Here’s Why

By Rishikesh Ram Bhandary  This is a critical policy moment just weeks ahead of the 28th United Nations Climate Change Conference (COP28) in Dubai where the first-ever assessment of how countries are meeting their climate pledges under the Paris Agreement – the Global Stocktake (GST) – will conclude. This review process will provide countries vital […]

Reforming Bretton Woods Institutions to Achieve Climate Change and Development Goals

Countries will need to mobilize a stepwise increase in domestic resources and put in place a broad array of new policies in order to meet the targets set out under the Paris Agreement on climate change and the United Nations 2030 Sustainable Development Goals (SDGs). Delivering economic growth and prosperity in a manner that is […]

Bond Market Crises and International Lender of Last Resort

As pandemic fears gripped investors in March 2020, foreign officials, US leveraged funds and US bond funds all dumped US bonds. This massive selling severely strained the working of the US bond market. In a new book chapter in Fault Lines after COVID-19: Global Economic Challenges and Opportunities, Robert N. McCauley discusses the response of […]