This paper develops a model that focuses on the interaction of liquidity creation by financial intermediaries with capital flows and exchange rate collapses. The intermediaries’ role of transforming maturities is shown to result in larger movements of capital and a higher probability of...

This Selected Issues paper investigates the drivers of headline inflation and the degree of exchange rate pass-through (ERPT) in The Gambia over the period 2014-2023. Stylized facts and the limited studies on The Gambia point to the role of both domestic and external drivers for inflation...

This paper assembles a comprehensive dataset of the currency composition of countries' external balance sheets for 50 economies over the period 1990-2020. We document the following findings: (i) the US dollar and the euro still dominate global external balance sheets; (ii) there were striking...

The assessment of external positions and exchange rates of member countries is a key mandate of the IMF. The External Balance Assessment (EBA) methodology has provided the framework for conducting external sector assessments by Fund staff since its introduction in 2012. This paper provides the...

Chapter 1: Introduction -- Chapter 2: Prologue -- Part 1: Internal and External Equilibrium under the Bretton Woods System -- Chapter 3: Japanese Economic Policy Management under the Bretton Woods System -- Chapter 4: The Internal vs External Dilemma: West German and Japanese Episodes -- Chapter...

It is a well-established regularity that permanent oil price shocks do not have a permanent effect on the current account deficit. This requires that sub-components of the current account or trade balance will make the necessary adjustments to accommodate the higher energy bill of a country...

Dynamics of Balance of Payment developments are still barely researched. Chapter 1 tries to summarize empirical evidence between institutional determinants and BoP movements and proposes a framework for the role of institutions in a debt cycle. It is found that “good” institutions do help a...

Written by Margaret Garritsen de Vries, former Historian of the IMF, the book describes the policies and activities the IMF has pursued in helping members achieve balane of payments adjustment. Separate treatment is given to industrial and developing countries, since their balance of payments...