Managing Volatility in Low-Income Countries - The Role and Potential for Contingent Financial Instruments

Managing Volatility in Low-Income Countries - The Role and Potential for Contingent Financial Instruments PDF

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2011-10-31

Total Pages: 59

ISBN-13: 1498338321

DOWNLOAD EBOOK →

The paper examines the case for contingent financial instruments for low-income countries (LICs), from both the market and official sector. These include commodity price hedging instruments, contingent debt instruments (commodity-linked bonds, deferred repayment loans), and natural disaster insurance, for example. The paper considers the adequacy of the existing framework of ex post and ex ante support to LICs facing exogenous shocks, and examines the need for and possible constraints to greater availability of contingent instruments. Would there be a role for the international community, particularly the IMF and World Bank, in helping to address the constraints that limit development and use of these instruments?

Managing Volatility - A Vulnerability Exercise for Low-Income Countries

Managing Volatility - A Vulnerability Exercise for Low-Income Countries PDF

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2011-10-03

Total Pages: 52

ISBN-13: 1498339204

DOWNLOAD EBOOK →

This paper, introduces the analytical framework for a Vulnerability Exercise for Low-Income Countries (VE-LIC). The envisaged exercise will strive to identify vulnerabilities and emerging risks that arise from changes in the external environment in a consistent manner across countries and across time. The objective is to strengthen the staff’s capacity to spot vulnerabilities and flag potential pressure points in LICs arising from external triggers before they materialize.

The Role of State-Contingent Debt Instruments in Sovereign Debt Restructurings

The Role of State-Contingent Debt Instruments in Sovereign Debt Restructurings PDF

Author: Charles Cohen

Publisher: INTERNATIONAL MONETARY FUND

Published: 2020-11-19

Total Pages:

ISBN-13: 9781513556482

DOWNLOAD EBOOK →

The COVID-19 crisis may lead to a series of costly and inefficient sovereign debt restructurings. Any such restructurings will likely take place during a period of great economic uncertainty, which may lead to protracted negotiations between creditors and debtors over recovery values, and potentially even relapses into default post-restructuring. State-contingent debt instruments (SCDIs) could play an important role in improving the outcomes of these restructurings.

Financial Deepening, Terms of Trade Shocks, and Growth Volatility in Low-Income Countries

Financial Deepening, Terms of Trade Shocks, and Growth Volatility in Low-Income Countries PDF

Author: Mr.Kangni R Kpodar

Publisher: International Monetary Fund

Published: 2019-03-25

Total Pages: 35

ISBN-13: 1498304907

DOWNLOAD EBOOK →

This paper contributes to the literature by looking at the possible relevance of the structure of the financial system—whether financial intermediation is performed through banks or markets—for macroeconomic volatility, against the backdrop of increased policy attention on strengthening growth resilience. With low-income countries (LICs) being the most vulnerable to large and frequent terms of trade shocks, the paper focuses on a sample of 38 LICs over the period 1978-2012 and finds that banking sector development acts as a shock-absorber in poor countries, dampening the transmission of terms of trade shocks to growth volatility. Expanding the sample to 121 developing countries confirms this result, although this role of shock-absorber fades away as economies grow richer. Stock market development, by contrast, appears neither to be a shock-absorber nor a shock-amplifier for most economies. These findings are consistent across a range of econometric estimators, including fixed effect, system GMM and local projection estimates.

The IMF Financial Surveillance Strategy

The IMF Financial Surveillance Strategy PDF

Author: International Monetary Fund. Monetary and Capital Markets Department

Publisher: International Monetary Fund

Published: 2012-08-28

Total Pages: 37

ISBN-13: 1498339948

DOWNLOAD EBOOK →

This paper outlines strategic priorities for the IMF’s financial surveillance in the coming years. It complements recent discussions on the work agenda in this area. It takes stock of innovations and gaps in financial surveillance by the Fund during the past decade, including in the wake of the current global financial crisis. It proposes concrete and prioritized steps to further strengthen financial surveillance so that the Fund can fulfill its mandate to ensure the effective operation of the international monetary system and support global economic and financial stability.

Fiscal Frameworks for Resource Rich Developing Countries

Fiscal Frameworks for Resource Rich Developing Countries PDF

Author: Marcos Poplawski-Ribeiro

Publisher: International Monetary Fund

Published: 2012-05-16

Total Pages: 29

ISBN-13: 1475510063

DOWNLOAD EBOOK →

Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.

The State of Food Security and Nutrition in the World 2019

The State of Food Security and Nutrition in the World 2019 PDF

Author: Food and Agriculture Organization of the United Nations

Publisher: Food & Agriculture Org.

Published: 2019-07-15

Total Pages: 239

ISBN-13: 9251315701

DOWNLOAD EBOOK →

This year’s report presents evidence that the absolute number of people who suffer from hunger continues to slowly increase. The report also highlights that food insecurity is more than just hunger. For the first time, the report provides evidence that many people in the world, even if not hungry, experience moderate food insecurity as they face uncertainties about their ability to obtain food and are forced to compromise on the quality and/or quantity of the food they consume. This phenomenon is observed globally, not only in low- and middle-income countries but also in high income countries. The report also shows that the world is not on track to meet global nutrition targets, including those on low birthweight and on reducing stunting among children under five years. Moreover, overweight and obesity continue to increase in all regions, particularly among school-age children and adults. The report stresses that no region is exempt from the epidemic of overweight and obesity, underscoring the necessity of multifaceted, multisectoral approaches to halt and reverse these worrying trends. In light of the fragile state of the world economy, the report presents new evidence confirming that hunger has been on the rise for many countries where the economy has slowed down or contracted. Unpacking the links between economic slowdowns and downturns and food insecurity and malnutrition, the report contends that the effects of the former on the latter can only be offset by addressing the root causes of hunger and malnutrition: poverty, inequality and marginalization.

Natural Disasters

Natural Disasters PDF

Author: Ms.Nicole Laframboise

Publisher: International Monetary Fund

Published: 2012-10-09

Total Pages: 32

ISBN-13: 1475512716

DOWNLOAD EBOOK →

This paper reviews the literature on the macroeconomic impact of natural disasters and presents the IMF’s role in assisting countries coping with natural catastrophes. Focusing on seven country cases, the paper describes the emergency financing, policy support, and technical assistance provided by the Fund to help governments put together a policy response or build a macro framework to lay the foundation for recovery and/or unlock other external financing. The literature and experience suggests there are ways to strengthen policy frameworks to increase resilience to natural disaster shocks, including identifying the risks and probability of natural disasters and integrating them more explicitly into macro frame-works, increasing flexibility within fiscal frameworks, and improving coordination amongst international partners ex post and ex ante.

Remittances and Vulnerability in Developing Countries

Remittances and Vulnerability in Developing Countries PDF

Author: Giulia Bettin

Publisher: International Monetary Fund

Published: 2014-01-27

Total Pages: 33

ISBN-13: 1484385330

DOWNLOAD EBOOK →

This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in both source and recipient economies. We exploit a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to 107 developing countries over the period 2005-2011. We find that remittances are negatively correlated with the business cycle in recipient countries, and increase in response to adverse exogenous shocks, such as natural disasters or large declines in the terms of trade. Remittances are positively correlated with economic conditions in the source province. Nevertheless, in the presence of similar negative shocks to both source and recipient economies, remittances remain counter-cyclical with respect to the recipient country.

Lanterna Rally - Theme by Grace Themes