The Global Financial Safety Net
International institutions have been developed to provide liquidity to nation states that may struggle to meet their balance of payments commitments in the world economy. From an interdisciplinary perspective, GEGI conducts comparative and policy oriented analyses on the emergence, design, and efficacy of these institutions such as the International Monetary Fund and the variety of ‘regional financial arrangements’ that consist of what is often referred to as the ‘global financial safety net.’
Building Back a Better Financial Safety Net
New data shows in 2018, only about half of all IMF member countries had access to IMF resources, and new research using our Global Financial Safety Net Tracker highlights further inequities in these resources – and how they’ve gone under utilized in pandemic economic relief, in favor of bilateral swaps. Many emerging market & developing countries started 2020 desperate for liquidity and in fear of default, and as governments face the challenges of COVID19 and climate change, they will need fiscal space to respond to these simultaneous crises. A new GDP Center explores report what is needed to help:
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Latest News and Publications
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A Challenging Imperative: IMF Reform, the 17th Quota Review and Increasing Voice and Representation for Developing Countries
April 14, 2025Quotas are at the core of the International Monetary Fund (IMF)’s finances and governance. Beyond serving as the IMF’s primary funding source to support IMF lending and operations, quotas shape members’ access to financing, allocation of Special Drawing Rights (SDRs) and... [ More ]
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Does Global Crisis Finance Sustain a Middle-income Trap? Insights from the Updated Global Financial Safety Net Tracker
July 10, 2024By Laurissa Mühlich, Barbara Fritz and William N. Kring Following the COVID-19 pandemic, low- and middle-income countries (LICs and MICs, respectively), and in particular lower MICs, have recovered more slowly than high-income countries (HICs). LICs and MICs continue to struggle with... [ More ]
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How Central Bank Swaps Reinforce Inequalities in the Global Financial Safety Net
July 09, 2024By 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... [ More ]
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Cherry-Picking in Central Bank Currency Swaps: Empirical Insights into the Determinants and Income Bias in Swap Access during Crises
July 09, 2024Since 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... [ More ]
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Global Financial Safety Net Tracker Database Methodology Guidebook
July 02, 2024The Global Financial Safety Net (GFSN) is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their impacts. It has four main elements: countries’ own international reserves; bilateral swap arrangements whereby central banks exchange... [ More ]