The IMF’s Flexible Credit Line
The policy conditions attached to the disbursement of an IMF loan have long been the subject of controversy. In the wake of the global financial crisis, the IMF introduced a new lending program—the...
View ArticleVenezuela and the Next Debt Crisis
The markets for the bonds of emerging markets have been rattled by developments in Venezuela. On November 13,Standard & Poor’s declared Venezuela to be in default after that country missed interest...
View ArticleA Guide to the (Financial) Universe: Part II
(Part I of this Guide appears here.) 3. Crisis and Response The global crisis revealed that the pre-crisis financial universe was more fragile than realized at the time. Before the crisis, this...
View ArticleThe Parting of Ways: The U.S. and China
The agreement of U.S. President Donald Trump and Chinese President Xi Jingping to restart trade talks put offs planned increases of tariffs on Chinese exports. But there is little doubt that the U.S....
View ArticleThe Coming Debt Crisis
After the 2008-09 global financial crisis, economists were criticized for not predicting its coming. This charge was not totally justified, as there were some who were concerned about the run-up in...
View ArticleThe Guardians of the Financial Galaxy
The rapid expansion of the pandemic and the ensuing economic and financial collapses brought about responses by policymakers, including actions undertaken on an international basis. The Federal Reserve...
View ArticlePortfolio Capital Flows to Emerging Markets amid the Pandemic
Among the most notable economic responses to the COVID-19 pandemic has been the turnaround in capital flows to emerging markets. A sudden reversal in portfolio flows of over $100 billion to these...
View ArticleThe Coming Wave of Debt Restructurings
The news that the Federal Reserve will raise interest rates in 2022 sooner than anticipated was not surprising in view of the continued high rates of U.S. inflation. While U.S. asset prices are falling...
View ArticleThe Restructuring of Sovereign Debt
The economic repercussions of Russia’s invasion of Ukraine will be devastating for many countries that have yet to recover from the pandemic. Higher prices for commodities, particularly energy and...
View ArticleThe Costs of the Defragmentation of the Global Economy
The integration of markets across borders has slowed down, and in some cases, reversed. These changes come in the wake of the global financial crisis, Donald Trump’s embrace of trade restrictions,...
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