Publications /
Policy Paper

Back
Download PDF
Emerging Markets and Developing Economies in the Global Financial Safety Net
Authors
Otaviano Canuto
Amshika Amar
February 16, 2024
Related topics: 
Economy

When countries face external financial shocks, they must rely on financial buffers to counter such shocks. The global financial safety net is the set of institutions and arrangements that provide lines of defense for economies against such shocks.

From any individual country standpoint, there are three lines of defense in their external financial safety nets: international reserves, pooled resources (swap lines and plurilateral financing arrangements), and the International Monetary Fund.

We argue here that there is a need to extend and facilitate access to the ultimate global financial safety net layer: the IMF. We illustrate that by pointing out how Morocco and Mexico have boosted their defensive power by having access to IMF precautionary lines of credit.

*The authors wish to thank Abdelaaziz Ait Ali for comments on an earlier version, without implicating him in any way.

RELATED CONTENT

  • Download PDF
    Morocco: Growth strategy for 2025 in an evolving international environment
    Authors
    Karim El Aynaoui
    Pierre-Richard Agénor
    January 24, 2015
    The Moroccan economy is currently facing the risk of becoming caught between the rapid-growing low-income countries with abundant and cheap labor, and middle-income countries that are able to innovate quickly. In addition, China’s massive investments in Sub-Saharan Africa have accelerated the participation of some countries in the region in a new international division of labor, especially in low-skill-intensive light manufacturing. In parallel, through the structure of its trade a ...
  • Battling Global Unemployment: Too Soon to Declare Victory
    Authors
    Prakash Loungani
    January 24, 2015
    Seven years after the onset of the Great Recession, the global unemployment rate has returned to its pre-crisis level: the jobless rate fell to 5.6% in 2014; essentially the same as in 2007, the year before the recession. Chart 1: Global Unemployment Back to Pre-Crisis Level but Remains High in OECD (Average of unemployment rates for 105 countries, percent) Sources: IMF, and Economist intelligence Unit Calculations.   Note: Based on data for 105 countries that publish reliable lab ...
  • A Better Year Ahead ?
    Authors
    Uri Dadush
    January 23, 2015
    The year just ending disappointed economic forecasters, as did the year prior, and the one before that. The aftereffects of the Lehman crisis, now over six years old, and of the subsequent sovereign crisis in Europe, have been systematically underestimated and continue to plague us.  Although the outlook for 2015 is foggier than usual, there are significant areas of strength and many signs that the world economy continues to heal, beginning from here in the United States.  The coll ...
  • Download PDF
    International Jobs Report: Edition 2015
    Authors
    January 14, 2015
    The International Jobs Report offers an analysis of labor market conditions since the end of the 2008-09 global recession. It also provides forecasts of GDP and employment by the IMF and the International Labor Organization (and by a private-sector company, The Economist Intelligence Unit), to spur discussion and debate. Future editions will update and expand on this analysis, opening a window on to a global labor market that is improving, but not nearly fast enough to help the tens ...
  • Download PDF
    Gagnant et perdant: effects macroéconomiques de la chute des prix de l’énergie
    Authors
    Yves Jégourel
    January 10, 2015
    La chute des prix pétroliers observée depuis le milieu de l’année 2014 s’explique par la conjonction d’un excès d’offre et par une insuffisance de la demande dans un contexte économique mondial morose. Le niveau des prix ne peut cependant être la seule variable à prendre en compte dans une analyse prospective des effets macroéconomiques de cette baisse : structure par terme et volatilité des prix constituent ici des éléments explicatifs fondamentaux. ...
  • China and Emerging Economies
    Andrew Small
    December 01, 2014
    This podcast is performed by Andrew Small. This podcast addresses a series of macro-trends the Chinese economy has been experiencing these past years. It also presents China’s relationshi ...