Country Insurance - The Role of Domestic Policies
Policy Papers, June 19, 2006
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- Country Insurance - The Role of Domestic Policies
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Bibliographic details
- Published: June 19, 2006
- Series: Policy Papers
Context and purpose
- Member countries face a range of shocks that can contribute to higher volatility in aggregate output and, in extreme cases, to economic crises.
- The presence of such risks underlies a potential demand for mechanisms to soften the blow from adverse economic shocks — “country insurance”.
- This paper analyzes mechanisms through which countries can self-insure, leaving the role of collective regional and multilateral arrangements to subsequent papers.
Self-insurance mechanisms analyzed
- Sound economic policies.
- Robust financial structures.
- Adequate reserve coverage.
Role of regional and multilateral arrangements
- Beyond self-insurance, countries have established regional arrangements that pool risks.
- At the multilateral level the IMF has a central role in making its resources temporarily available to attenuate the costs of economic adjustment when shocks create balance of payments difficulties for a member.
- Detailed analysis of collective regional and multilateral arrangements is left to subsequent papers.
Publication and document status
- Notes: This is a discussion paper prepared by IMF staff. It is not a policy paper of the International Monetary Fund, and any positions taken should not be attributed to the Executive Board or management of the IMF. This paper should not be reported as representing the views of the IMF.
- Date: June 19, 2006
- Access context: Our eLibrary offers over 25,000 IMF publications in multiple formats.
Subjects covered
- Domestic debt
- Fiscal reforms
- Insurance
- Public debt
- Reserves
Country Insurance - The Role of Domestic Policies, June 19, 2006 (discussion paper prepared by IMF staff).
Content in this bundle
- Country Insurance: The Role of Domestic Policies; June 19, 2006