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Begin New Search Topic International Monetary Fund Publication Year within 10 Years

11. Much Ado about Nothing? The RMB's Inclusion in the SDR Basket

Author:
Hongying Wang
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
The International Monetary Fund recently concluded its quinquennial review of the composition of the Special Drawing Right (SDR), accepting the Chinese currency into the SDR basket alongside four major international currencies — the US dollar, the euro, the British pound and the Japanese yen. The Chinese government has spent a great deal of energy and political capital to achieve this outcome. This policy paper explains China’s interest in this seemingly exotic and technical pursuit, identifying the political and economic motivations underlying this initiative.
Topic:
Economics, Politics, International Monetary Fund, and Monetary Policy
Political Geography:
China

12. The End of the Beginning: Paris COP 2015

Author:
David Runnalls
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The Paris Conference of the Parties (COP) 2015 is designed to produce the next round of climate change action. There are reasons to believe that the chances for success at the multilateral level are better now that they were before, but even under the most optimistic scenarios, Paris will not be the end of the negotiations. The Paris summit will be crucial to maintaining the momentum that has been building in the private sector and civil society on the issue of climate change. COP 21 has generated an enormous amount of public interest. Civil society actions both before and during the Paris meeting promise to be on a grand scale. In addition, COP21 has excited action from a number of other levels of government not normally seen at these events. Leaders of the IMF, the World Bank and the OECD have all stated that climate change is the principal economic issue facing the world this century. There is a growing realization among the world's economic decision makers that the shift to a low-carbon economy is not only a necessity, but also may be less costly than we believe. The need to identify both public and private financing solutions is the greatest hurdle facing the Paris COP. CIGI's climate change research is tackling the issue of financing sustainable development, in addition to how agreements can be reached by smaller countries, how to address the problems of the delayed benefits from mitigation, ways that China can exercise leadership in this arena, and how the world's financial institutions can help mobilize climate finance from the private sector.
Topic:
Civil Society, Climate Change, Energy Policy, Environment, International Monetary Fund, World Bank, Regulation, Financial Markets, and Climate Finance
Political Geography:
Global Focus

13. Capital Controls and Implications for Surveillance and Coordination: Brazil and Latin America

Author:
Marcio Garcia
Publication Date:
04-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
From 2009 until 2011, Brazil utilized capital controls to deter real exchange rate appreciation. These measures may have obstructed necessary changes in the fiscal policy stance from occurring. In Chile, which employed capital controls heavily in the 1990s and then decided not to use them again during the commodity super-boom in the 2000s, suggests that an adequate fiscal policy stance provides better results than the use of capital controls. In addition, the recent experiences of Colombia and Peru demonstrate capital controls are not always necessary. This paper makes recommendations for capital control surveillance and coordination, using the Brazilian experience as an example, and draws on experiences in other Latin American countries. When analyzing the implications for surveillance and coordination, international institutions, such as the International Monetary Fund, should take into consideration that, no matter how many caveats are listed before its guidelines, capital controls mainly serve to bypass needed changes in macroeconomic policy, thereby jeopardizing economic performance.
Topic:
Economics, Foreign Exchange, and International Monetary Fund
Political Geography:
Brazil and Latin America

14. Ukraine and the IMF's Evolving Debt Crisis Narrative

Author:
Susan Schadler
Publication Date:
11-2015
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Against the International Monetary Fund’s (IMF’s) fraught experience with crises where debt restructuring is needed, Ukraine’s recent restructuring agreement has been a success. Several factors — in particular, Ukraine’s geopolitical position and the composition of its creditors — facilitated official support for the deal. As these are unlikely to be replicated in future debt crises, the IMF still needs a revamping of its policies and approach in crises requiring debt restructuring. This policy brief examines a number of key challenges in the evolution of a coherent role for the IMF in future crises.
Topic:
Debt, Political Economy, International Monetary Fund, Financial Crisis, and Global Markets
Political Geography:
Ukraine

15. Sovereign Bond Contract Reform: Implementing the New ICMA Pari Passu and Collective Action Clauses

Author:
Gregory Makoff and Robert Kahn
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In August 2014, following an extensive consultative process, the International Capital Market Association (ICMA) published proposed standard terms for new, aggregated collective action clauses (CACs). Concurrently, ICMA released new model wording for the pari passu clause typically included in international sovereign bond contracts. These announcements and the commencement of issuance of bonds with these clauses are an important turning point in the evolution of sovereign bond markets. The new CACs will make it much harder for holdout creditors to disrupt future bond restructurings or to be paid in full after the other bondholders receive haircuts. Under the new contractual form, a supermajority of bondholders can vote to force non-participating creditors into a restructuring, subject to strong protections against the abuse of minority creditors by the majority. At the same time, the new pari passu clause is designed to prevent the kind of rulings that lead to a disruption in payments to investors, as was the recent case with Argentina. Neutralizing holdout creditors in this fashion is of immense economic importance. It should facilitate more predictable outcomes for debtors and creditors, and fairer outcomes among creditors in situations that require debt restructuring. However, even with the rapid issuance of bonds under the new ICMA framework, the potential for disorderly debt restructurings will remain until the vast majority of old bonds, already in the stock of debt of sovereign borrowers, have been converted to bonds that include the new clauses. This may take more than a decade. A strong case exists for the establishment of a coordinated public-private initiative that is focused on converting existing stocks of debt to the new format. While benefits to issuers and investors should provide a market force to drive the rapid uptake of the new clauses, the Group of Twenty (G20), working closely with the International Monetary Fund (IMF) and creditor groups, is uniquely positioned to give legitimacy to discussions of accelerated adoption of the new clauses, as well as discussions of further mechanisms to facilitate orderly debt restructuring. This paper discusses the ICMA consultative process to develop the new clauses, explains the workings of CACs and the history of their adoption, analyzes the effect of the new clauses in reducing holdout activity and discusses the use of bondholder meetings and exchange offers to accelerate the conversion of outstanding debt stocks into the new format.
Topic:
Debt and International Monetary Fund
Political Geography:
Argentina