Category: FINANCIAL STABILITY

Enough Voice for the Vulnerable? Why Climate-vulnerable Countries Need More Voting Power within the International Monetary Fund

By Timon Forster It has been three years since the International Monetary Fund (IMF) – the organization tasked with monitoring the international monetary and financial system – determined that its mandate encompasses the macro-economic consequences of global warming (e.g., the pressure of natural disasters on government coffers). In the meantime, the Fund has hired climate […]

How Central Bank Swaps Reinforce Inequalities in the Global Financial Safety Net

By Marina Zucker-Marques, Laurissa Mühlich, Barbara Fritz, Thomas Goda What once consisted of only the International Monetary Fund (IMF) has become a complex, multilayered and non-coordinated network of institutions aimed at supporting countries during times of financial distress. This network is known as the Global Financial Safety Net (GFSN), and comprises the IMF, regional financial […]

Cherry-Picking in Central Bank Currency Swaps: Empirical Insights into the Determinants and Income Bias in Swap Access during Crises

Since the 2007-09 global financial crisis, central bank currency swaps have become a crucial element of the Global Financial Safety Net (GFSN)—the set of institutions and arrangements that backstop countries in financial distress. These swaps, where credit lines between central banks aim to provide liquidity to stabilizing markets during turmoil, have two key advantages: immediate […]

Navigating Power Dynamics Within Latin America’s Regional Development Banks

By Leslie Elliott Armijo and Verónica Rubio Vega Sepehr What can an international relations (IR) perspective reveal about cooperation within regional development banks—and vice versa? From the viewpoint of Latin America, the most democratic region within the Global South and the only one where most countries have been independent polities for two centuries, there have […]

The Geopolitics of Latin America’s Regional Development Banks

What factors help or impede international cooperation within regions of the Global South? A new working paper from Leslie Elliott Armijo and Verónica Rubio Vega Sepehr examines how variations in the geographic scope of a region can result in different types of power (im)balances among members, in turn generating important consequences for both the depth […]