Preserving Financial Stability

Preserving Financial Stability
Author: Mr.Garry J. Schinasi
Publisher: International Monetary Fund
Total Pages: 32
Release: 2006-01-09
Genre: Business & Economics
ISBN: 9781589063563

Spurred by advances in information and computer technologies, financial liberalization and innovation took off inthe late 1970s. Although the changes in financial markets have been beneficial overall, our understanding of the new risks to financial stability lags behind, as demonstrated by the financial crises of the past couple of decades. The study of international financial stability - a public good - is still in its infancy. This pamphlet, aimed at stimulating further debate on the subject, proposes a definition of financial stability and a broad framework for safeguarding it without inhibiting its dynamic development or limiting its benefits.

Preserving Financial Stability

Preserving Financial Stability
Author: Garry J. Schinasi
Publisher: International Monetary Fund
Total Pages: 33
Release: 2006-01-09
Genre: Business & Economics
ISBN: 1451927622

Spurred by advances in information and computer technologies, financial liberalization and innovation took off inthe late 1970s. Although the changes in financial markets have been beneficial overall, our understanding of the new risks to financial stability lags behind, as demonstrated by the financial crises of the past couple of decades. The study of international financial stability - a public good - is still in its infancy. This pamphlet, aimed at stimulating further debate on the subject, proposes a definition of financial stability and a broad framework for safeguarding it without inhibiting its dynamic development or limiting its benefits.

Handbook of Safeguarding Global Financial Stability

Handbook of Safeguarding Global Financial Stability
Author: Gerard Caprio
Publisher: Academic Press
Total Pages: 547
Release: 2012-11-27
Genre: Business & Economics
ISBN: 0123978750

Political and social forces exert pressure on our globalized economy in many forms, from formal and informal policies to financial theories and technical models. Our efforts to shape and direct these forces to preserve financial stability reveal much about the ways we perceive the financial economy. The Handbook of Safeguarding Global Financial Stability examines our political economy, particularly the ways in which these forces inhabit our institutions, strategies, and tactics. As economies expand and contract, these forces also determine the ways we supervise and regulate. This high-level examination of the global political economy includes articles about specific countries, crises, and international systems as well as broad articles about major concepts and trends.. Substantial articles by top scholars sets this volume apart from other information sources Diverse international perspectives result in new opportunities for analysis and research Rapidly developing subjects will interest readers well into the future

Global Financial Stability Report, October 2019

Global Financial Stability Report, October 2019
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 109
Release: 2019-10-16
Genre: Business & Economics
ISBN: 1498324029

The October 2019 Global Financial Stability Report (GFSR) identifies the current key vulnerabilities in the global financial system as the rise in corporate debt burdens, increasing holdings of riskier and more illiquid assets by institutional investors, and growing reliance on external borrowing by emerging and frontier market economies. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies.

Global Financial Stability Report, April 2021

Global Financial Stability Report, April 2021
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 92
Release: 2021-04-06
Genre: Business & Economics
ISBN: 1513569678

Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Actions taken during the pandemic may have unintended consequences such as stretched valuations and rising financial vulnerabilities. The recovery is also expected to be asynchronous and divergent between advanced and emerging market economies. Given large external financing needs, several emerging markets face challenges, especially if a persistent rise in US rates brings about a repricing of risk and tighter financial conditions. The corporate sector in many countries is emerging from the pandemic overindebted, with notable differences depending on firm size and sector. Concerns about the credit quality of hard-hit borrowers and profitability are likely to weigh on the risk appetite of banks. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. The appropriate timing for deployment of macroprudential tools should be country-specific, depending on the pace of recovery, vulnerabilities, and policy tools available. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector. While there is little evidence of large price misalignments at the onset of the pandemic, signs of overvaluation have now emerged in some economies. Misalignments in commercial real estate prices, especially if they interact with other vulnerabilities, increase downside risks to future growth due to the possibility of sharp price corrections.

Does Easing Monetary Policy Increase Financial Instability?

Does Easing Monetary Policy Increase Financial Instability?
Author: Ambrogio Cesa-Bianchi
Publisher: International Monetary Fund
Total Pages: 47
Release: 2015-06-26
Genre: Business & Economics
ISBN: 1513547909

This paper develops a model featuring both a macroeconomic and a financial friction that speaks to the interaction between monetary and macro-prudential policies. There are two main results. First, real interest rate rigidities in a monopolistic banking system have an asymmetric impact on financial stability: they increase the probability of a financial crisis (relative to the case of flexible interest rate) in response to contractionary shocks to the economy, while they act as automatic macro-prudential stabilizers in response to expansionary shocks. Second, when the interest rate is the only available policy instrument, a monetary authority subject to the same constraints as private agents cannot always achieve a (constrained) efficient allocation and faces a trade-off between macroeconomic and financial stability in response to contractionary shocks. An implication of our analysis is that the weak link in the U.S. policy framework in the run up to the Global Recession was not excessively lax monetary policy after 2002, but rather the absence of an effective regulatory framework aimed at preserving financial stability.

Keeping Finance Personal

Keeping Finance Personal
Author: Ellyce Fulmore
Publisher: Hachette Go
Total Pages: 281
Release: 2024-01-23
Genre: Business & Economics
ISBN: 0306831333

“… a clear, approachable guide to help readers untangle their relationship with money, understand the systems and inequities that impact them, and reclaim financial independence.”―Edgar Villanueva, bestselling author of Decolonizing Wealth An intersectional approach to personal finance from queer, neurodivergent personal finance educator and TikToker, Ellyce Fulmore. There’s no magic formula for being “good with money.” The perfect budgeting spreadsheet or debt repayment plan will never address the root of your money issues. When Ellyce Fulmore started her journey with personal finance, she was drowning in $35K of debt, had $60 to her name, and avoided looking at her bank account. Her own “aha” moment came when she realized that the reason she and so many others have struggled with finances has little to do with being “bad with money.” Instead, it has everything to do how identity and lived experience affect financial behaviors. Now in Keeping Finance Personal, Ellyce offers a shame-free, trauma-aware approach that explores the complex, nuanced, and deeply personal relationship between your identity and your money. With chapters exploring topics such as finding safe spaces, personal values, relationship dynamics, family systems, and culture, it’s clear this is not your typical finance book. Readers will engage with how their upbringing, sense of self, trauma, and mental health impact their decisions, and begin a journey to change their relationship with money. This book is for the woman facing sexism at her local bank, the neurodivergent person struggling with impulse spending, the young adult questioning societal expectations, the 2SLGBTQIA+ couple searching for a place to rent—all the people that don’t fit into the mold that traditional finance advice is aimed at. Filled with interviews from a diverse range of voices, practical exercises, and tangible tips, Keeping Finance Personal provides a path to develop a healthy money mindset and create a life where financial stability and joy coexist.

Financial Access and Stability

Financial Access and Stability
Author: The World Bank
Publisher: World Bank Publications
Total Pages: 370
Release: 2011-09-21
Genre: Business & Economics
ISBN: 0821388568

The countries of the Middle East and North Africa (MENA) have been recovering from the global financial crisis, but the recent political turmoil has interrupted the pace of credit and output recovery in many countries. The political turmoil in the MENA region reveals deep-seated frustrations and a sense of political, social, and economic exclusion, especially among the youth. The relatively weak growth performance reflects a combination of insufficient reforms and weak reform implementation, including financial sector reforms. The structural weaknesses of financial sectors imply that access to finance may remain restricted even with a full recovery of credit activity. Therefore, the region s countries face an ambitious reform agenda to revert two decades of relatively poor performance of output and employment growth. Financial development should be a central component of the region s growth agenda. This study reviews the region s financial systems, the severity of the limitations on access to finance, and the main factors behind such limitations. It goes on to provide a road map for expanding access and preserving financial stability.