International Monetary Fund

Displaying 281-320 of 676 results

  • White Papers // Feb 2010

    Constraints On Growth In The MENA Region

    This paper contributes to the empirical literature on growth in the MENA region by attempting to quantify the impact of the various constraints faced by local businesses highlighted by the World Bank's Business Enterprise surveys. To the best of the author's knowledge the dataset has not been used in any...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Systemic Risks And The Macroeconomy

    This paper presents a modeling framework that delivers joint forecasts of indicators of systemic real risk and systemic financial risk, as well as stress-tests of these indicators as impulse responses to structural shocks identified by standard macroeconomic and banking theory. This framework is implemented using large sets of quarterly time...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Fiscal Policy In Oil Producing Countries During The Recent Oil Price Cycle

    This paper presents a detailed analysis of the average fiscal policy responses of oil producing countries (OPCs) to the recent oil price cycle. The author finds that OPCs worsened their non-oil primary balances substantially during 2003 - 2008 driven by an increase in primary spending. However, this trend was partially...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Simulating Inflation Forecasting In Real-Time: How Useful Is A Simple Phillips Curve In Germany, The UK, And The US?

    This paper simulates out-of-sample inflation forecasting for Germany, the UK, and the US. In contrast to other studies, the author uses output gaps estimated with unrevised real-time GDP data. This exercise assumes an information set similar to that available to a policymaker at a given point in time since GDP...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Yield Curve Dynamics And Spillovers In Central And Eastern European Countries

    This paper applies the models used to study yield curve dynamics and spillovers in the U.S. and other countries to Central and Eastern European countries (CEE countries). Using the Diebold, Rudebusch, and Aruoba (2006) dynamic version of the Nelson-Siegel representation of the yield curve, the paper finds that the two-way...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Firm Productivity, Innovation And Financial Development

    How do firm-specific actions - in particular, innovation - affect firm productivity? And what is the role of the financial sector in facilitating higher productivity? Using a rich firm-level dataset, the author finds that innovation is crucial for firm performance as it directly and measurably increases productivity. Moreover, its effects...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    The Empirics Of Exchange Rate Regimes And Trade: Words Vs. Deeds

    This paper examines the impact of exchange rate regimes on bilateral trade while differentiating the effects of "Words" and "Deeds". The findings - based on an extended database for de jure and de facto exchange rate classifications - show that while fixed exchange rate regimes increase trade, there is no...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Bank Credit During The 2008 Financial Crisis: A Cross-Country Comparison

    This paper empirically estimates the main determinants of bank credit growth during the 2008 financial crisis. Using a sample covering over 80 countries, this paper finds that larger bank credit booms prior to the crisis and lower GDP growth of trading partners are among the most important determinants of the...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    The Composition And Cyclical Behavior Of Trade Flows In Emerging Economies

    Trade flows data show that the composition and cyclical properties of imports are similar in developed economies and emerging markets (EM) but this is not the case for exports. Unlike developed economies, (i) EM export few or only a selective set of capital goods and (ii) capital good and overall...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Inflation Targeting And The Crisis: An Empirical Assessment

    This paper appraises how countries with inflation targeting fared during the current crisis, with the goal of establishing the stylized facts that will guide and motivate future research. The author finds that since August 2008, IT countries lowered nominal policy rates by more and this loosening translated into an even...

    Provided By International Monetary Fund

  • White Papers // Feb 2010

    Lessons And Policy Implications From The Global Financial Crisis

    The ongoing global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The crisis has brought to light a number of deficiencies in financial regulation and architecture, particularly in the treatment of systemically important financial institutions, the assessments of systemic risks...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Inflation In Tajikistan: Forecasting Analysis And Monetary Policy Challenges

    This paper attempts to explain short- and long-term dynamics of - and forecast - inflation in Tajikistan using the Vector Error Correction Model (VECM) and Autoregressive Moving Average Model (ARMA). By analyzing different transmission channels through the VECM, the author was able to evaluate their relative dominance, magnitude, and speed...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Investment By Large Firms In Argentina

    Strong growth in investment made a key contribution to the economic recovery in Argentina earlier this decade. This paper uses firm-level data to assess changes in financing constraints and the linkages between real investment at the firm level and macroeconomic developments in the real exchange rate and real interest rates....

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Public Debt Sustainability And Management In A Compound Option Framework

    This paper introduces the Asset and Liability Management (ALM) compound option model. The model builds on the observation that the public sector net worth in a multi-period setting corresponds to the value of an option on an option on total government assets. Hence, the ALM compound option model is better...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Post-Crisis Bank Behavior: Lessons From Mercosur

    Did the occurrence of systemic banking crises in the 1990s and 2000s significantly alter the behavior of banks in the Mercosur? The objective of this paper is to answer this question by analyzing changes in bank behavior after crises in the Mercosur region. To the author's knowledge, this is the...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Recovery Determinants Of Distressed Banks: Regulators, Market Discipline, Or The Environment?

    Based on detailed regulatory intervention data among German banks during 1994 - 2008, the author tests if supervisory measures affect the likelihood and the timing of bank recovery. Severe regulatory measures increase both the likelihood of recovery and its duration while weak measures are insignificant. With the benefit of hindsight,...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    International Pricing Of Emerging Market Corporate Debt: Does The Corporate Matter?

    The pricing of emerging market assets is thought to principally reflect changes in global sentiments and country risk. In turn, country risk is a reflection of a lack of sufficient information, agency problems (inability of a foreign lender to monitor a distant borrower), and sovereign risk. For these reasons, it...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    The Global Financial Crisis And Workers' Remittances To Africa: What's The Damage?

    One of the distinguishing features of the global financial crisis of 2007 - 09 is its effect on remittances. Until the financial crisis, remittances had proven to be a remarkably dependable source of income for households in developing economies, growing robustly regardless of the state of the business cycle. But...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Financial Shocks And TFP Growth

    The paper investigates how changes in industries' funding costs affect total factor productivity (TFP) growth. Based on panel regressions using 31 U.S. and Canadian industries between 1991 and 2007, and using industries' dependence on external funding as an identification mechanism, the author shows that increases in the cost of funds...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    The Location Of Domestic And Foreign Production Affiliates By French Multinational Firms

    Economists interested in location choices usually focus their attention on investments abroad. This neglects the fact that multinational enterprises continue to invest domestically while undertaking foreign expansion. This paper compares investments at home and abroad. Our firm-level dataset shows an important home bias in productive investments. Part of this "Excessive"...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    An Estimated Model With Macrofinancial Linkages For India

    This paper develops a small open economy dynamic stochastic general-equilibrium model with macro-financial linkages. The model includes a financial accelerator - entrepreneurs are assumed to partially finance investment using domestic and foreign currency debt - to assess the importance of financial frictions in the amplification and propagation of the effects...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Dissecting Taylor Rules In A Structural VAR

    This paper uncovers Taylor rules from estimated monetary policy reactions using a structural VAR on U.S. data from 1959 to 2009. These Taylor rules reveal the dynamic nature of policy responses to different structural shocks. The author finds that U.S. monetary policy has been far more responsive over time to...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    The Outlook For Financing Japan's Public Debt

    Despite the rapid rise in public debt and large fiscal deficits, Japanese Government Bond (JGB) yields have remained fairly stable. Possible factors include: Japan's sizeable pool of household savings, presence of large and stable institutional investors, and strong home bias. These factors are likely to persist for some time, but...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Responding To Banking Crises: Lessons From Cross-Country Evidence

    A common legacy of banking crises is a large increase in government debt, as fiscal resources are used to shore up the banking system. Do crisis response strategies that commit more fiscal resources lower the economic costs of crises? Based on evidence from a sample of 40 banking crises the...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    China: Does Government Health And Education Spending Boost Consumption?

    Consumption in China is unusually low and has continued to decline as a share of GDP over the past decade. A key policy question is how to reverse this trend, and rebalance growth away from reliance on exports and investment and toward consumption. This paper investigates whether the sizable increase...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Estimating Poland's Potential Output: A Production Function Approach

    This paper develops a methodology based on the production-function approach to estimate potential output of the Polish economy. The paper concentrates on obtaining a robust estimate of the labor input by deriving Poland's natural rate of unemployment. The estimated unemployment gap is found to track well pressures on resource constraints....

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Are Financial Crises Alike?

    This paper investigates whether financial crises are alike by considering whether a single modeling framework can fit multiple distinct crises in which contagion effects link markets across national borders and asset classes. The crises considered are Russia and LTCM in the second half of 1998, Brazil in early 1999, dot-com...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Canada's Potential Growth: Another Victim Of The Crisis?

    This paper investigates the impact of the current financial crisis on Canada's potential GDP growth. Using a simple accounting framework to decompose trend GDP growth into changes in capital, labor services and total factor productivity, the author finds a sizeable drop in Canadian potential growth in the short term. The...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Exchange Rate Choices Of Microstates

    In this paper the author firsts explain why most microstates (countries with less than 2 million inhabitants) have gained independence only in the last 30 years. Despite the higher costs and risks microstates face, their ability to better accommodate local preferences combined with a more integrated world economy probably explains...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    After The Crisis: Lower Consumption Growth But Narrower Global Imbalances?

    This paper estimates consumption dynamics in the G-7 economies, paying particular attention to the possibility of precautionary behavior in the face of uncertainty. The author finds that in the short run, continued income uncertainty will significantly dampen consumption growth. As such, consumption in the G-7 economies is unlikely to be...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Sovereign Default Risk And Private Sector Access To Capital In Emerging Markets

    Top down spillovers of sovereign default risk can have serious consequences for the private sector in emerging markets. This paper analyzes the effects of these spillovers using firm-level data from 31 emerging market economies. The author assesses how sovereign risk affects corporate access to international capital markets, in the form...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Macrofinancial Linkages Of The Strategic Asset Allocation Of Commodity-Based Sovereign Wealth Funds

    This paper analyses the links between the investment strategies of a commodity-based SWF and the macroeconomic framework of the owner country. The author examines some basic macrofinancial linkages of an SWF's strategic asset allocation (SAA) strategies with regard to the government budget, monetary policy, and exchange rate movements. Based on...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    The Spillover Effects Of The Global Crisis On Economic Activity In MENA Emerging Market Countries-An Analysis Using The Financial Stress Index

    The estimated spillover of the global crisis to emerging market (EM) economies in the Middle East and North Africa (MENA) indicates that nearly two-thirds of the increased financial stress in MENA EM countries after the Lehman shock is attributable to direct or indirect spillovers of financial stress in advanced economies....

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    What Level Of Public Debt Could India Target?

    This paper discusses possible medium-term public debt targets for India, based on evidence from the economic literature on prudent levels of public debt and the feasibility for the country to meet a particular target over the next 5-6 years. While recognizing the challenges in determining an appropriate debt target, cross-country...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Correlations In Emerging Market Bonds: The Role Of Local And Global Factors

    This paper examines the co-movement in emerging market bond returns and disentangles the influence of external and domestic factors. The conceptual framework, set in the context of asset allocation, allows one to describe the channels through which shocks originating in a particular emerging or mature market are transmitted across countries...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    The Impact Of The Global Crisis On Canada: What Do Macro-Financial Linkages Tell Us?

    This paper builds a Bayesian VAR estimation model of growth for Canada, by focusing specifically on the role of external and domestic financial indicators, including credit conditions. A variance decomposition shows that financial conditions explain one-third of the total variability in Canada's real GDP growth, although changes in U.S. real...

    Provided By International Monetary Fund

  • White Papers // Jan 2010

    Inherited Or Earned? Performance Of Foreign Banks In Central And Eastern Europe

    Using a combination of propensity score matching and difference-in-difference techniques the author investigates the impact of foreign bank ownership on the performance and market power of acquired banks operating in Central and Eastern Europe. This approach allows one to control for selection bias as larger but less profitable banks were...

    Provided By International Monetary Fund

  • White Papers // Dec 2009

    The Hedonic Country Product Dummy Method And Quality Adjustments For Purchasing Power Parity Calculations

    The 2005 International Comparison Program's (ICP) estimates of economy-wide purchasing power parity (PPP) are based on parity estimates for 155 basic expenditure headings, mainly estimated using country product dummy (CPD) regressions. The estimates are potentially inefficient and open to omitted variable bias for two reasons. First, they use average prices...

    Provided By International Monetary Fund

  • White Papers // Dec 2009

    Foreign Bank Entry And Credit Allocation In Emerging Markets

    This paper employees a unique data set containing bank-specific information to explore how foreign bank entry determines credit allocation in emerging markets. The author investigates the impact of the mode of foreign entry (greenfield or takeover) on banks' portfolio allocation to borrowers with different degrees of informational transparency, as well...

    Provided By International Monetary Fund

  • White Papers // Dec 2009

    A Framework To Assess The Effectiveness Of IMF Technical Assistance In National Accounts

    This paper analyzes the effectiveness of technical assistance provided by AFRITAC West (AFW) in the area of national accounts using the Fund's Technical Assistance Information Management System (TAIMS). The challenge has been to report on "Ultimate outcomes" (i.e., the production and dissemination of national accounts statistics along best international practices)...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    The Declining Importance Of Tradable Goods Manufacturing In Australia And New Zealand: How Much Can Growth Theory Explain?

    In this paper, the IMF's new Global Economy Model (GEM) is used to estimate the contribution of unbalanced growth to the decline in the share of goods production in Australia and New Zealand. The simulation results suggest that faster productivity growth in the tradable goods sector in Australia, New Zealand,...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    The Determinants Of Commercial Bank Profitability In Sub-Saharan Africa

    Bank profits are high in Sub-Saharan Africa (SSA) compared to other regions. This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. The author finds that apart from credit risk, higher returns on assets are associated with larger bank size, activity...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    Bank Efficiency In Sub-Saharan African Middle Income Countries

    This paper uses bank level data to study the efficiency of banks in Sub-Saharan African middle-income countries and provide possible explanations for the difference in the efficiency levels of banks. It's found that banks, on average, could save 20 - 30 percent of their total costs if they were operating...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    Why Do Central Banks Go Weak?

    Determinants of central banks' profitability are studied using a statistical analysis of their balance sheets, country characteristics, and the macroeconomic and institutional environments in which they operate. Central banks at both tails of the distribution of profits generally operate in poorer countries with more troubled macroeconomic and institutional environments. For...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    The International Diversification Puzzle When Goods Prices Are Sticky: It's Really About Exchange-Rate Hedging, Not Equity Portfolios

    This paper develops a two-country monetary DSGE model in which households choose a portfolio of home and foreign equities, and a forward position in foreign exchange. Some nominal goods prices are sticky. Trade in these assets achieves the same allocations as trade in a complete set of nominal state-contingent claims...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    How Can Burundi Raise Its Growth Rate? The Impact Of Civil Conflicts And State Intervention On Burundi's Growth Performance

    For the last thirty years, Burundi's low economic growth has led to a significant decline in per capita GDP. The purpose of this paper is to analyze the factors that contributed to this poor performance and to shed light on supply-side constraints that prevent Burundi's economy from growing faster. The...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    Benford's Law And Macroeconomic Data Quality

    This paper examines the usefulness of testing the conformity of macroeconomic data with Benford's law as indicator of data quality. Most of the macroeconomic data series tested conform with Benford's law. However, questions emerge on the reliability of such tests as indicators of data quality once conformity with Benford's law...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    Distress In European Banks: An Analysis Based On A New Dataset

    The global financial crisis has highlighted the importance of early identification of weak banks: when problems are identified late, solutions are much more costly. Until recently, Europe has seen only a small number of outright bank failures, which made the estimation of early warning models for bank supervision very difficult....

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    The Role For Counter-Cyclical Fiscal Policy In Singapore

    Singapore's policymakers have often used fiscal policy as a counter-cyclical tool. Empirical results based on a structural auto regression framework suggest that fiscal policy can be used for demand management, although the impact may be somewhat short lived. The short-lived impact could reflect a number of factors, including the absence...

    Provided By International Monetary Fund

  • White Papers // Jan 2009

    Australia And New Zealand Exchange Rates: A Quantitative Assessment

    The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and New Zealand. The baseline results using data and medium-term projections available as of October 2008, suggest that the Australian and New Zealand dollars were broadly in line with fundamentals,...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Three Cycles: Housing, Credit, And Real Activity

    This paper examines the characteristics and co-movement of cycles in house prices, credit, real activity and interest rates in advanced economies during the past 25 years, using a dynamic generalized factor model. House price cycles generally lead credit and business cycles over the long term, while in the short to...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Global Market Conditions And Systemic Risk

    This paper examines several key global market conditions, such as a proxy for market uncertainty and measures of interbank funding stress, to assess financial volatility and the likelihood of crisis. Using Markov regime-switching techniques, it shows that the Lehman Brothers failure was a watershed event in the crisis, although signs...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Macro-Hedging For Commodity Exporters

    This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare through two channels. First, by reducing export income volatility and allowing for a smoother consumption path....

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    The Liquidity And Liquidity Distribution Effects In Emerging Markets: The Case Of Jordan

    This paper analyzes the determinants of daily changes in Jordan's interbank market overnight rate. It not only quantifies the classic liquidity effect, but also uncovers a liquidity distribution effect on both sides of the market, and shows that their magnitude is a decreasing and convex function of the level of...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Analyzing Fiscal Space Using The MAMS Model: An Application To Burkina Faso

    This paper analyses economic implications and the transmission mechanisms of different options for creating and using fiscal space. For creating fiscal space, the author considers prioritizing expenditures, raising revenue, and scaled-up aid. Fiscal space is used for increasing health and education spending, infrastructure spending, or both. The analysis takes place...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Unconventional Central Bank Measures For Emerging Economies

    Unconventional central bank measures are playing a key policy role for many advanced economies in the 2007 - 09 global crisis. Are they playing a similar role for emerging economies? Emerging economies have widely used unconventional foreign exchange and domestic short-term liquidity easing measures. Their use of credit easing and...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Revisiting The Determinants Of Productivity Growth: What's New?

    This paper studies the main determinants of total factor productivity (TFP) growth using principal component analysis and a dynamic panel data model and, through a case study, explores key areas where accelerated reforms in the Maghreb countries would boost TFP gains. The results reveal that reforms targeted at attracting foreign...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    New Zealand Bank Vulnerabilities In International Perspective

    The global financial crisis is creating stress on banking systems across the world through funding and asset quality shocks. This paper combines different stress scenarios, as well as cross-country analysis, to assess New Zealand bank vulnerabilities to the global crisis and the domestic recession. It finds that a sharp worsening...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Australian Bank And Corporate Sector Vulnerabilities-An International Perspective

    This paper focuses on how the exposure to the corporate sector may impact the health of the Australian banking system. It also compares Australian banks with their international peers. Finally, it investigates banks' exposure to credit risk using the new Basel II Pillar 3 disclosure data. The analysis shows that...

    Provided By International Monetary Fund

  • White Papers // Oct 2009

    Euro Area Sovereign Risk During The Crisis

    While the use of public resources is critical to cushion the impact of the financial crisis on the euro-area economy, it is key that the entailed fiscal costs not be seen by markets as undermining fiscal sustainability. From this perspective, to what extent do movements in euro area sovereign spreads...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    How Effective Is Fiscal Policy Response In Systemic Banking Crises?

    This paper studies the effects of fiscal policy response in 118 episodes of systemic banking crisis in advanced and emerging market countries during 1980 - 2008. It finds that timely countercyclical fiscal measures contribute to shortening the length of crisis episodes by stimulating aggregate demand. Fiscal expansions that rely mostly...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Macroeconomic Fluctuations In The Caribbean: The Role Of Climatic And External Shocks

    This paper develops country-specific VAR models with block exogeneity restrictions to analyze how exogenous factors affect business cycles in the Eastern Caribbean. It finds that external shocks play a key role, explaining more than half of macroeconomic fluctuations in the region. Domestic business cycles are especially vulnerable to changes in...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Fiscal Cycles In The Caribbean

    The sharp increase in debt in the Caribbean since the mid-1990s has focused attention on the conduct of fiscal policy in the region. This paper aims to diagnose how fiscal policy has behaved during this period by looking at three main cycles of the economy: the business, election, and natural...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Revenue Mobilization In Sub-Saharan Africa: Challenges From Globalization

    This paper evaluates the nature and extent of, and possible responses to, two of the central challenges that globalization poses for revenue mobilization in Sub-Saharan Africa (SSA): from corporate tax competition, and from trade liberalization. It does so using a new dataset with features needed to meaningfully address these issues:...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    A Framework For Financial Market Development

    This paper proposes a framework for examining the process of financial market development. The framework, consistent with the functional view of financial system design, is anchored in studying the incentives facing the key players in financial markets - borrowers, lenders, liquidity providers, and regulators - whose actions determine whether and...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Spillovers From The Rest Of The World Into Sub-Saharan African Countries

    This paper investigates the impact of a global slowdown on individual African countries using a series of dynamic panel regressions for countries in the region, relating real growth in domestic output to world growth in trade weighted by partner countries and several control variables: oil prices, non-oil prices, financial variables,...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    The Quality Of Public Investment

    This paper develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services in affecting the productivity of private capital, specialization, and growth. The model provides potential explanations for the contradictory empirical results on the effects of public investment found in...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Do Workers' Remittances Promote Economic Growth?

    Over the past decades, workers' remittances have grown to become one of the largest sources of financial flows to developing countries, often dwarfing other widely-studied sources such as private capital and official aid flows. While it is undeniable that remittances have poverty-alleviating and consumption-smoothing effects on recipient households, a key...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Why Are Canadian Banks More Resilient?

    This paper explores factors behind Canadian banks' relative resilience in the credit turmoil. The author identifies two main causes: a higher share of depository funding (vs. wholesale funding) in liabilities, and a number of regulatory and structural factors in the Canadian market that reduced banks' incentives to take excessive risks....

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    How The Financial Crisis Affects Pensions And Insurance And Why The Impacts Matter

    This paper discusses the key sources of vulnerabilities for pension plans and insurance companies in light of the global financial crisis of 2008. It also discusses how these institutional investors transit shocks to the rest of the financial sector and economy. The crisis has re-ignited the policy debate on key...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Development Of The Commercial Banking System In Afghanistan: Risks And Rewards

    Lending practices of commercial banks in Afghanistan were analyzed using CAMEL ratings. Statistically significant correlations were found: Banks with worse ratings (a) had more lending to domestic clients and (b) paid less tax. There was no statistically significant relationship between profits and total assets or between lending/assets versus profit/assets. Interviews...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Requirements For Using Interest Rates As An Operating Target For Monetary Policy: The Case Of Tunisia

    Over the last two decades, Tunisia has undertaken economic reforms which have allowed access to international capital markets on favorable terms: a good macroeconomic policy track record was established; the prudential framework for the financial sector was strengthened; the foreign exchange system was liberalized; and the Central Bank of Tunisia...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    In Search Of Successful Inflation Targeting: Evidence From An Inflation Targeting Index

    In a first attempt to treat inflation targeting (IT) as a continuous variable, the author constructs IT subindices for 21 full-fledged ITers on three dimensions: flexibility, transparency, and explicitness. Comparing flexibility and transparency it's found that (1) the impact of flexibility on both the mean and variation of inflation is...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Macroeconomic Fundamentals, Price Discovery And Volatility Dynamics In Emerging Markets

    This paper characterizes volatility dynamics in external emerging bond markets and examines how prices and volatility respond to news about macroeconomic fundamentals. As in mature bond markets, macroeconomic surprises in external emerging bond markets are found to affect both conditional returns and volatility, with the effects on volatility being more...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Introducing The Euro As Legal Tender - Benefits And Costs Of Eurorization For Cape Verde

    In recent years, recommendations for countries to unilaterally dollarize/eurorize have become common, particularly when the countries lack economic credibility. After exploring the characteristics of dollarizing/eurorizing economies, the author looks at the merits and costs of unilateral eurorization for Cape Verde, a highly tourism based economy that has become increasingly integrated...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Anatomy Of Regional Disparities In The Slovak Republic

    This paper examines economic growth and various dimensions of regional disparities in Slovakia. The author finds that regional disparities in the levels of GDP per capita, labor productivity, and labor utilization have widened since 2000, coinciding with the time that Slovakia initiated negotiations on EU accession. Notwithstanding ?-divergence in the...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    The Effects Of The Financial Crisis On Public-Private Partnerships

    This paper investigates the impact of the global financial crisis on public-private partnerships (PPPs) and the circumstances under which providing support to new and existing projects is justified. Based on country evidence, cost of and access to finances are found to be the main channels of transmission of the financial...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Bank Competition, Risk And Asset Allocations

    This paper studies a banking model in which banks invest in a riskless asset and compete in both deposit and risky loan markets. The model predicts that as competition increases, both loans and assets increase; however, the effect on the loans-to-assets ratio is ambiguous. Similarly, as competition increases, the probability...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Will They Sing The Same Tune? Measuring Convergence In The New European System Of Financial Supervisors

    In June 2009 a new financial supervisory framework for the European Union (EU) was endorsed, consisting of a macro- and a micro-prudential pillar. The latter is composed of a Steering Committee, a supranational layer and a network of national supervisory authorities at the bottom, de facto establishing a complex multiple...

    Provided By International Monetary Fund

  • White Papers // Jul 2009

    Banking Crises And Crisis Dating: Theory And Evidence

    Many empirical studies of banking crises have employed "Banking crisis" (BC) indicators constructed using primarily information on government actions undertaken in response to bank distress. This paper formulates a simple theoretical model of a banking industry which one uses to identify and construct theory-based measures of systemic bank shocks (SBS)....

    Provided By International Monetary Fund