Categories Uncategorized WEO/GFSR: Analytical Chapters Post author By Philip Lane Post date April 7, 2011 5 Comments on WEO/GFSR: Analytical Chapters The analytical chapters from the IMF’s World Economic Outlook and Global Financial Stability Report have been released. WEO chapters are here. GFSR chapters are here. Related ← Honohan: Irish debt repayments should be linked to growth → Department of Finance: Briefing Notes for the Incoming Minister 5 replies on “WEO/GFSR: Analytical Chapters” Summary of Capital Flows …. http://www.imf.org/external/pubs/ft/weo/2011/01/pdf/4sum.pdf Methinks weather seems to be more predictable …. yet both appear to be outside any ‘human’ control …. must be why ECB does not comment on the weather. Look at the Private Capital flows chart in thw WEO report chapter 4. It’s a little confusing, but basically, the red countries (China/Brazil/Germany, France, Canada, etc) are out of trouble. The blue countries, (Ireland, US,UK,India, Iceland, etc) are still in trouble. Liquidity Risk Chapter http://www.imf.org/external/pubs/ft/gfsr/2011/01/pdf/chap2.pdf The boards of the Irish banks will, I’m absolutely certain, be up all night reading this one …… as will Dear Lorenzo trying to figure why he is not cited …. and trying to figure out how did those Irish citizen_serf_fools manage to pose such a creeping risk to his florentin_ecb reputation … he will, of course, ignore the chapter on capital flows. In the GFSR one, if you compare and contrast P. 3 Figure 3.1 with P.24 figure 3.6, it makes you go ‘hmmm’. ‘Capital flow variability is likely to remain a fact of life for both emerging market and advanced economies. The key is to ensure that such variability does not compromise economic growth and financial stability. As further discussed in Chapter 1, policymakers need to adopt the right mix of macroeconomic policies, prudential financial supervision, and macro-prudential measures to maintain strong growth in the face of variable capital flows.’ Are authors up for a Nordic Gong on this discovery? In my day we called that ‘Hot Money’ 🙂 Comments are closed.