Details
Date:
June 22
Time:
9:00 am - 10:30 am
Course Number:
STR20.08
Application Deadline
21-Jun-20
Dampening Global Financial Shocks in Emerging Markets – Can Macroprudential Regulation Help?
Speaker
Katharina Bergant (IMF)
Niels Jakob Hansen (IMF)
Target Audience
Central Banks officials.
Course Description
The COVID-19 pandemic is impacting emerging markets through an unprecedented combination of domestic and external shocks. Among the latter, the pandemic has led to a sharp increase in global risk aversion and an abrupt retrenchment in foreign capital flows. In this session authors of the April 2020 IMF Work Economic Outlook draw on historical experience to assess how global financial shocks affect macroeconomic conditions in emerging markets and what policies can do. The analysis in chapter 3 of the latest World Economic Outlook shows that emerging markets can enhance resilience to global financial shocks using macroprudential regulation.The study finds that indeed tighter macroprudential regulation in emerging markets can both strengthen financial stability and dampen the impact of global financial shocks on economic activity the authors explain the channels of transmission and factors affecting policy effectiveness.
