Many emerging economies could benefit from insurance against this backdrop of volatility. Fortunately, cheap and no-strings-attached liquidity insurance exists, in the form of the IMF’s Flexible Credit Line (FCL) for countries with very strong policy fundamentals; for countries with somewhat weaker, but still sound fundamentals, the Precautionary and Liquidity Line (PLL) offers a similarly good deal. But these precautionary instruments remain underutilized. We have some suggestions on how the IMF could fix this.
CGD Policy Blogs
When the UN adopted the Sustainable Development Goals (SDGs) in 2015, they were met with a mix of hope, dismay, and derision. Until we see how people respond to these goals, judgments about their specificity, complexity, and usefulness are educated guesses. At a workshop last month, I got a glimpse of two ways the SDGs may be making a difference—focusing political attention and reorganizing aid relationships.