This paper discusses instruments and operating procedures of the conduct of monetary policy in the major industrial countries. The exchange rate mechanism of the European Monetary System (EMS) provides clear evidence of the role of exchange rates in influencing monetary policy; the commitment of...

The economic impact of the pandemic has been much milder than initially foreseen, still the outlook remains challenging. The economy, dominated by financial services, adapted quickly to telework and benefited from unprecedented policy support, both domestically and globally. Uncertainty is...

This 2017 Article IV Consultation highlights Luxembourg's strong growth supported by the competitive advantages of fiscal stability, a qualified workforce, and business-friendly regulations and oversight. Economic growth reached 4.2 percent in 2016, well above the EU, and was driven by net...

This Selected Issues paper studies diversification in Luxembourg's economy and the role of the government. The economy of Luxembourg appears to be more concentrated than that of comparable countries. Sectoral output is more concentrated than in other countries; this relative lack of...

This paper evaluates the stability of the financial system of Luxembourg. Financial soundness indicators for Luxembourg's financial system, which plays a key role in the intermediation of financial capital, have remained relatively robust in recent years. Following rising asset prices and...

This paper discusses growth prospects and downside risks of Luxembourg's economy. Luxembourg's small open economy plays a pivotal role in intermediating global capital flows. Deep-rooted traditions of fiscal prudence, business-friendly regulation, a skilled labor force, and low and predictable...

This paper studies the two vital issues of Luxembourg's economy: investment IMF-World Bank linkages and lessons and challenges in accommodating migrants and refugees. The Luxembourg investment fund industry, second in the world after the United States, has grown rapidly since the global...