FINANCIAL STABILITY
Financial shocks occur with increasing frequency in the integrated world economy, threatening the stability of financial systems, economic growth, long-term development and the well-being of individuals and businesses worldwide. It is therefore fundamental to have tools and policies in place not only to prevent the occurrence of financial shocks but also to mitigate their negative impact and contagion when they do occur.
The Global Economic Governance Initiative’s workstream on Financial Stability for Development examines the extent to which nation-states and international institutions interact to prevent and mitigate financial crises. Its research assesses whether the Global Financial Safety Net (GFSN) is fit for purpose in terms of size, policies and coverage; evaluates the effectiveness and role of informal institutions in managing sovereign debt workouts and ensuring orderly and equitable resolutions; and examines how a country’s own macroprudential policies and regional cooperation can also help manage financial risks.
Financial Stability – Latest News & Publications
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IMF Lending Returns to Low Levels While the PBOC Continues as the Largest Provider of Currency Swaps: Insights from the Updated Global Financial Safety Net Tracker
September 24, 2025By 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, [ More ]
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V20 Debt Review: An Account of Debt in the Vulnerable Group of 20 — 3rd Edition
July 07, 2025Climate vulnerable economies have launched ambitious national plans and strategies to achieve prosperity while mitigating climate shocks, building resilience and powering their economies with clean... [ More ]
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GDP Center Round-up: 4th International Conference on Financing for Development
June 26, 2025By Samantha Igo As a record-breaking heat wave strains energy grids and risks public health across Europe, policymakers, activists and experts convene in Seville, Spain from... [ More ]
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The Jubilee Report: A Blueprint for Tackling the Debt and Development Crises and Creating the Financial Foundations for a Sustainable People-Centered Global Economy
June 25, 2025Developing countries are facing dramatic debt and development crises where, to meet obligations to their external creditors, debt-distressed countries are sacrificing investments in education, healthcare, [ More ]
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FAQs: What Can be Expected from the 4th International Conference on Financing for Development?
June 18, 2025By Tim Hirschel-Burns The highly anticipated Fourth International Conference on Financing for Development (FFD4) will take place from June 30 to July 3 in Seville, Spain. Achieving... [ More ]
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The Cost of Inaction: Explaining Africa’s Debt Distress in 10 Charts — and Five Fixes for the G20
June 18, 2025By Marina Zucker-Marques The African continent holds immense potential for sustainable development. It is rich in renewable energy resources—home to 60 percent of the world’s solar... [ More ]
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Global Financial Safety Net Tracker Database Methodology Guidebook, 2025
June 17, 2025The Global Financial Safety Net (GFSN) is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their impacts. It... [ More ]
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Norms and Troubled Sovereign International Debt
May 29, 2025Troubled sovereign international debt is a global governance challenge, requiring solutions balancing the interests of the global economy, creditors, and debtor nations and their citizens. [ More ]
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The Role of Ideas in Economic Policy: The Global Sovereign Debt Regime
May 29, 2025By Leslie Elliott Armijo and Prateek Sood Ideas matter for choices about economic policy. Unexamined assumptions may bound the scope of the analysis of the sources... [ More ]
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Debt Sustainability Analysis as if Development Really Mattered
May 27, 2025To achieve the United Nations 2030 Sustainable Development Goals (SDGs) and avoid the catastrophic consequences of climate inaction, emerging market and developing countries (excluding China)... [ More ]