Policy Papers
2011
January 7, 2011
Is SDR Creation Inflationary?
Description: Giving greater prominence to SDRs in international reserves would entail allocating them more frequently in significant amounts. The question has properly been raised whether such issuance would be inflationary for the world economy. This short paper addresses that question. It explores five different “scenarios” that describe how recipient countries and the leading central banks—most notably the U.S. Federal Reserve (FRB) and the EU’s European Central Bank (ECB)—would respond to those allocations. It concludes that SDR issuance would be inflationary for the world economy under two of the scenarios, but not under the remaining three scenarios, which include the most likely ones.
2010
December 30, 2010
Macro-Fiscal Implications of Health Care Reform in Advanced and Emerging Economies - Case Studies
Description: This supplement provides country case studies on public health care expenditures and reform experiences in eight advanced and six emerging market economies. The case studies for the advanced economies seek to highlight specific episodes of success in containing public health spending during the past 30 years. For the emerging economies, the case studies take a broader approach and examine reform experiences and challenges during the past two decades rather than focusing exclusively on episodes of successful reform. The lessons from the case studies for other countries are integrated into the main Board paper.
December 30, 2010
Macro-Fiscal Implications of Health Care Reform in Advanced and Emerging Economies
Description: This paper provides an analysis of the developments in public health spending over the past 40 years, as well as projections of public health spending for 50 advanced and emerging countries over 2011–50. The paper also quantifies the effects of specific health reforms on the growth of public health spending in advanced economies by drawing on a range of analytical approaches, including country case studies. The challenges facing emerging economies as they seek to expand coverage of health care in a fiscally sustainable manner are also examined.
December 22, 2010
Bilateral Surveillance Guidance Note
Description: This note provides guidance to staff on the conduct of bilateral surveillance, a core activity of the Fund. Surveillance involves the continuous monitoring of members’ economic and financial policies, and regular Article IV consultations. During these consultations, staff holds pointed discussions with country authorities on the economic situation, the authorities’ policies, and desirable policy adjustments. These discussions are then reported to the Fund’s Executive Board for its consideration. The goal is, through thorough analysis, candid discussions, and a peer-review mechanism, to promote the domestic and external stability of members’ economies and thereby the stability of the international monetary system as a whole.
December 17, 2010
Implementation Plan in Response to Board-Endorsed Recommendations Arising from the IEO Evaluation of IMF Interactions with Member Countries
Description: This paper presents a forward-looking implementation plan for Board-endorsed recommendations of the IEO Evaluation of IMF Interactions with Member Countries. Executive Directors welcomed the important insights offered into the effectiveness of these interactions, which are key to the Fund’s ability to achieve its goals. They broadly supported the need to enhance the traction of Fund surveillance, improve the effectiveness of outreach, and strengthen the management of interactions. Directors, nonetheless, “observed that the report covers principally the pre-crisis period, and significant progress has been made on several fronts since then.” In drawing up the implementation plan, this note focuses on points commanding broad support by the Executive Board, and builds on existing plans and ongoing reform initiatives that are broadly aligned with the evaluation’s recommendations.
December 17, 2010
Implementation Plan in Response to Board-Endorsed Recommendations Arising from the IEO Evaluation of IMF Interactions with Member Countries
Description:
This supplement reports on progress on various issues outlined in the staff’s Implementation Plan since its initial issuance on June 1, 2010.
Many of the steps included in the Implementation Plan, particularly proposals in the Mandate papers still under consideration last June, have been taken forward. These initiatives are aimed at better integration of bilateral and multilateral surveillance, sharpening analysis of financial sector issues and macro-financial linkages, and better tailoring of the Fund’s lending toolkit to members’ needs and circumstances. Many further initiatives are included in the latest Work Program, which was discussed by the Board on November 22, 2010.
December 6, 2010
Framework Administered Account for Selected Fund Activities - Caribbean Regional Technical Assistance Center (CARTAC) Subaccount
Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Caribbean Regional Technical Assistance Center (CARTAC) subaccount (the “Subaccount”) under the terms of the SFA Instrument.
December 6, 2010
Framework Administered Account for Selected Fund Activities: Liberia Macro-Fiscal Subaccount
Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Liberia Macro-Fiscal Subaccount (the “Subaccount”) under the terms of the SFA Instrument.
December 3, 2010
The Fund's Income Position for FY 2011 - Midyear Review
Description: This paper updates the outlook for the IMF’s income position for the financial year 2011 taking into account developments in the first half of the year. The outlook has improved primarily reflecting additional lending activity, which raised the projected average credit outstanding in FY 2011 by about SDR 3 billion to SDR 54 billion. Net operational income for FY 2011 is projected at SDR 328 million, some SDR 126 million higher than the projection in April 2010.1 The actual outcome is subject to considerable uncertainty related to the timing and amounts of disbursements under current and potential new arrangements and the performance of the Investment Account (IA).
November 18, 2010
Framework Administered Account for Selected Fund Activities: Sweden Subaccount for Selected Fund Activities
Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund Activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Sweden Subaccount for Selected Fund Activities (the “Subaccount”) under the terms of the SFA instrument.