GLOBAL LIQUIDITY INSURANCE MECHANISM A solution to the systematic provision of foreign exchange liquidity during periods of crises is an insurance pool for the world’s major economies-mainly but not necessarily just for the EMDEs. 2 The design features of the Global Liquidity […]
In order to continue to respond to post-pandemic challenges and to bolster a strong and sustainable recovery, this policy brief makes the case for actions to reset the GFSN through proposals to boost the use of the IMF Special Drawing rights (SDRs), […]
In order to involve the private sector and allow for an orderly restructuring in the event of a wave of sovereign debt crises, the official sector needs to provide the private sector with both carrots and sticks. Bolton et al. (2020) proposed […]
The advent of FinTech has brought the realisation that both financial education and consumer protection systems are vital elements in the process of social empowerment and financial growth (OECD 2017), yet not enough policy measures have focused on such aspects. Efforts must […]
We propose a five-pronged approach: (1) Globally coordinated fiscal stimulus for health measures (2) Measures to promote infrastructure finance in developing nations (3) Measures to address the widening income inequality gap (4) Financial support for severely affected sectors such as small- and […]
G20 measures to address debt crisis in LICs As LICs will find it difficult to respond effectively to the pandemic without assistance, the international community has a shared responsibility to engage with these countries. The G20 can play an important role in […]
We call on the G20 community to investigate the risks and impact of privately issued stablecoins on the international monetary system. Approximately 70% of the additional value generated by the global economy is expected to come from digital platforms over the next […]
Toward a global tech-driven debt transparency platform Overview of the problem and what has been achieved In a joint WBG-IMF paper (2018), three key observations were highlighted: “Strengthening public debt recording, monitoring and reporting is critical to debt transparency” via capacity building. […]
Countries’ efforts against IFFs are measurable While the quantification of IFFs does not seem feasible, the engagement against IFFs can easily be measured by drawing on official and reliable sources that assess countries’ performance against standards on which they have previously agreed. […]
We urge the G20 to develop a comprehensive agenda with a systemic vision on digital money and finance that could guide a resilient financial system through a prudent transition process, keep pace with technology, and deliver the long-term benefits promised by innovation. […]
Building on the different topics identified by regulatory authorities and advisory panels from Asia, North America, South America, and Europe, this policy brief proposes a novel approach to the policy discussion. Its main goal is to show how different issues are related, […]
To develop proposals on how the G20 can influence and coordinate the optimization of the coming monetary strategies, we start from Phase 1, the immediate measures required by the shock; we then proceed to synthetically discuss Phase 2, the medium-long term strategy […]
The G20 and the IMF have repeatedly reaffirmed their “commitment to a strong, quota-based, and adequately resourced IMF” to preserve its role at the center of the GFSN. They have also advocated for “further efforts to strengthen the [GFSN] and promote a […]
We urge the G20 to develop a comprehensive agenda with a systemic vision on digital money and finance that could guide a resilient financial system through a prudent transition process, keep pace with technology and deliver the long term benefits promised by […]
1. Outline optimal regulatory principles that would enable banks and Fintechs work together Fintechs, instead of building business models based on existing data repositories, generally start with customer pain points in a nation. Instead of transferring trust from another industry’s customer relations, […]
This proposal is laid out in two major sections: • Section 1 explores the opportunities emerging in the MSME lending landscape and examines the alternative data used and frameworks developed to bridge the MSME financing gap. • Section 2 details the proposed […]
Watching quarterly capital flow data in emerging market countries after the Global Financial Crisis (GFC), movements in each of capital flows have varied by regions and countries. In Asia, the foreign direct investment (FDI) flows were the largest and stable among the […]
Proposal 1: Create and adopt tools and instruments that can mainstream and simplify the methodology used to compute Natural Capital Valuations Natural capital can be defined as “those elements of the natural environment which provide valuable goods and services to people, such […]
Why are regulators in many LMICs implementing international banking standards, despite the challenges they pose? What steps can be taken to ensure that international banking standards are genuinely useful for low and lowermiddle income countries and support financial sector development? The political […]
G20 leaders should endorse the initial steps central banks have taken to evaluate the alignment of monetary policy and financial supervision with the goal of inclusive and sustainable growth. They should also encourage them and their peers to move further in assessing, reporting […]
Background Greater financial inclusion, involving both the access and usage of a broad range of financial products, has been widely recognised as a means to erradicate poverty, and is a strategy for supporting upward social mobility. World Bank researchers contend that greater […]
G20 should lead on developing principals in policy and regulation to ensure an adequate level of cybersecurity and data privacy while encouraging innovation. Technology has radically altered risks related to reliability, security and sustainability of the global financial ecosystems (6). A malicious […]
Issue 1: Managing technological innovation to promote greater financial inclusion The rise of new technology is reshaping the financial services industry toward digitalization, decentralization, and disintermediation of economic transactions. This digital transformation of the industry is happening alongside developments in telecommunications and […]
At the country level, the interconnection between monetary policy and financial stability cannot be ignored In a time of crisis, domestic policy coordination is quite natural as all the different authorities in charge of fiscal, monetary and financial stability policies cooperate to […]
Despite all the talk about moving from “billions to trillions,” that first surfaced in the Addis Ababa Action Agenda (United Nations, 2015), the empirical reality is that developing countries, net, do not use cross-border capital flows to their full extent. Taken as […]
Proposal: A global framework for enabling data exchange, cross-referencing, tracing and analysing Beneficial Owner data on cross-border financial transactions must be established. Two developments make this proposal feasible now. One, other G20 efforts such as those initiated by FSB, FATF, OECD and […]
In making corporate decisions, managers currently have a duty to the firm and its investors. To reduce systemic externalities, this policy brief recommends that managers should also have a public governance duty not to engage their firms in excessive risk-taking that leads […]
This policy brief explains why commercial law should recognize those de facto rights to facilitate credit for the economically disadvantaged. It also analyzes how commercial law pragmatically could be adapted to implement that recognition. Analysis Modern commercial law already recognizes important policy […]
Given the above challenges actions should be taken on several fronts. Proposal 1: Increase investment through domestic taxation and reduction of evasion G20 leaders should encourage governments to invest more per student, up to the US$ 8,000 threshold, due to the high […]
Both short and long-term challenges that confront monetary policies require a more intense global cooperation. The latter can help to manage normalization and start solving the conceptual, strategic and institutional problems that, in the longer run, hinder the trust in the effectiveness […]
There are many ways that this issue could be dealt with. A popular suggestion is that fiscal policy could be used in order to push up demand and generate inflation. The abolition of cash has also been suggested, so agents would not […]
Basics of peer-to-peer finance In general, financial markets fulfill the role of allocating capital from people with excess savings to those with (potentially) profitable investment opportunities. This intermediation of financial funds has traditionally been conducted by financial institutions, such as banks, […]
Financial resilience revisited We define financial resilience broadly as the capacity of a financial system to cope with crises. The term ‘to cope’ is used in the double sense of preventing crises to happen, and dealing with crises that happen. Resilience is […]
Promoting access to deposit accounts via banking networks G20 efforts to improve financial inclusion have been concentrated since the Seoul Summit in 2010 in the Financial Inclusion Action Plan and the G20 Global Partnership for Financial Inclusion. Working groups within the FIAP […]
On the importance of a harmonized level playing field Financial markets of the G20 countries are characterized by a high degree of integration. This allows for risk-sharing possibilities and the efficient allocation of capital, thus fostering sustainable growth. However, in integrated markets, […]
Accordingly, as the G20 countries aim at setting up a strategy with Africa, they should adopt the support of quality FDI as one promising element of integrating the indigenous economies of the African countries into world-wide supply chains. To this end, G20 […]
Summary The G20 Finance Minister and Central Bank Governors should be commended for urging improvements in the resilience of the global financial system and for highlighting the risk to financial stability through the malicious use of ICT. The 2016 Bangladesh central bank […]
The divergence of approaches followed by the most important mermbers of the G20 does not ensure an efficient management of the IMS and entails significant risks of trade and financial protectionism. Large exchange market intervention or exchange rate movements have led to […]