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
    Taux de Change Fixe / Taux de Change Flottant Le cas du Maroc
    Authors
    Henri-Louis Vedie
    September 24, 2019
    En pleine transition ordonnée de son régime de change, sous l'autorité bienveillante du Fonds monétaire international (FMI), le Royaume du Maroc est un exemple très concret des avantages et des inconvénients des deux régimes de change dominants ces dernières décennies/change fixe et change flottant /. L’objet de cette note est de rappeler, tout d'abord, les fondamentaux économiques des deux systèmes et leur environnement historique (I). Ensuite, à la lumière de ces fondamentaux, pré ...
  • Comment le Maroc résiste-t-il aux vulnérabilités ?
    September 17, 2019
    INTERVIEW avec Patrick Plane 1/ Selon votre indice de compétitivité durable en matière d’attractivité, le Maroc occupait, en 2016, la 5ème place en Afrique, en même temps qu’il se situait en haut du tableau en termes de résistance aux vulnérabilités. Que révèlent pour vous ces classemen...
  • Download PDF
    Inequality in Morocco: An International Perspective
    Authors
    Uri Dadush
    Hamza Saoudi
    September 1, 2019
    Income inequality is high in Morocco. In 2013, the share of national income1  of the richest 10% in Morocco stood at nearly 32%, 12 times higher than the share of national income of the poorest 10% of the population. This paper argues that, drawing on international experience, there is much more that Morocco’s government can do to reduce inequality while at the same time enhancing growth and – possibly – doing so in a manner that is budget-neutral or even budget-positive. Top of the ...
  • Fed Monetary Policy, Inverted Yield Curve and Outlook for US and Global Economy
    Authors
    Satyandra Nayak
    Otaviano Canuto
    August 27, 2019
    Since the Fed’s July meeting, when the Fed Funds Rate had a 0.25% cut, fears about the impact of the US-China trade war on the global economy have escalated. The US yield curve inversion received much attention as a harbinger of a slowdown in the global and US economic outlooks. We approach here whether lights on next monetary policy events can be obtained from reading the minutes of the Fed’s meeting – and of the July meeting of the ECB governing council – released this week. The ...
  • Les instruments de Bretton Woods en mode de retrait contraint
    Authors
    Mohammed Germouni
    August 26, 2019
    La création d’instruments financiers à la Conférence de Bretton Woods, à la fin de la Seconde  Guerre mondiale, était une nouveauté pour l’époque et avait sonné la fin du chacun pour soi « monétaire », en jetant les bases d’un système de changes fixes mais ajustables reconnaissant, cependant, et dès le départ, la primauté du dollar de la nouvelle grande puissance. Le Fonds monétaire international (FMI) devant se charger de venir en aide aux pays à la balance des paiements déficitai ...
  • Download PDF
    Inequality in Morocco: An International Perspective
    Authors
    Uri Dadush
    Hamza Saoudi
    August 23, 2019
    Income inequality is high in Morocco. In 2013, the share of national income of the richest 10% in Morocco stood at nearly 32%, 12 times higher than the share of national income of the poorest 10% of the population. High inequality can adversely affect long-term growth as it tends to be associated with underutilization of human potential. This paper argues that, drawing on international experience, there is much more that Morocco’s government can do to reduce inequality while at the ...
  • Download PDF
    Natural Wealth and Economic Growth: The Case of Sub-Saharan Africa
    Authors
    Otaviano Canuto
    Christos Daoulas
    August 22, 2019
    This note approaches the relationship between natural wealth and economic growth, using the case of Sub-Sahara African economies as an illustration. Delving into recent World Bank reports, it highlights how a sustained positive correlation between natural capital and GDP growth happens through the transformation of the former into other forms of assets: produced capital, human capital and other intangible assets. Governance features and the quality of macroeconomic policies are of t ...
  • Argentina’s Half-Baked Adjustment Has Not Worked
    Authors
    Otaviano Canuto
    August 19, 2019
    Argentina’s peso tumbled and stocks plunged after last Sunday’s primary elections. The perception of a likely victory of President Macri’s opponents – Alberto Fernandez, and running mate, Christina Fernandez de Kirchner - has sparked a new shift in investor preferences away from peso assets, pressures on the exchange rate, and hikes on sovereign spreads. Unless fears of a return to policies prevailing before Macri are assuaged, the market rout tends to deepen as a negative feedback ...