The International Monetary Fund (IMF) and the Catalytic Effect: Do IMF Agreements Improve Access of Emerging Economies to International Financial Markets?

In November 2015, the International Monetary Fund (IMF) decided to add Islamic finance to its monitoring of financial sectors around the world. The IMF traditionally has focused on conventional banking but recently it has become interested in Islamic banking and finance due to its phenomenal growth. Islamic banking assets exceed $2 trillion globally. This decision of the IMF has brought tremendous opportunity for Islamic banking constituents all over the world. However, many practitioners and supervisory authorities may not be aware of the fundamental differences between Islamic and conventional banking. This paper attempts to identify the major differences between the Conventional and Islamic Banking, and discuss the challenges of integrating Islamic banking and finance into the global financial markets.

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The Constructive Role of Private Creditors

Ethics & International Affairs ◽

10.1111/j.1747-7093.2003.tb00434.x ◽

2003 ◽

Vol 17 (2) ◽

pp. 18-25

Author(s):

Arturo C. Porzecanski

Keyword(s):

Emerging Markets ◽

Financial Markets ◽

International Monetary Fund ◽

Emerging Market ◽

Financial Intermediaries ◽

Government Officials ◽

Policy Makers ◽

The Past ◽

The International Monetary Fund

During the past couple of years, policy-makers in Washington and other capitals of G-7 countries have been flogging the idea that the functioning of the world's financial markets must be improved by making it easier for insolvent governments, especially in emerging markets, to obtain debt relief from their bondholders and bankers.Most savvy investors, financial intermediaries, and emerging-market government officials, however, are at a loss to understand why the G-7 and the International Monetary Fund (IMF) believe the international financial system would function better if there were specific mechanisms to facilitate sovereign bankruptcies.

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The Informal Labor Market and The Costs of Sovereign Borrowing

Revista Brasileira de Políticas Públicas e Internacionais - RPPI ◽

10.22478/ufpb.2525-5584.2020v5n1.49501 ◽

2020 ◽

Vol 5 (1) ◽

pp. 3-28

Author(s):

Natalia Dus Poiatti

Keyword(s):

Labor Market ◽

Financial Markets ◽

Informal Sector ◽

Emerging Economies ◽

Default Risk ◽

Sovereign Default ◽

International Financial Markets ◽

Informal Labor ◽

Sovereign Spreads ◽

Informal Labor Market

The informal labor market or informal sector is responsible for an economically significant fraction of GDP production in emerging economies. Taking the informal sector to be all economic activity intentionally concealed from tax authorities to avoid tax payments, an increase in the sector adversely impacts the government ability to collect tax revenues and may increase the probability of sovereign default. In turn, higher probability of sovereign default makes borrowing in international financial markets more costly. However, the current macro-finance models do not properly account for the role of the informal sector in explaining sovereign default risk. In this paper, I estimate a vector autoregressive model measuring the causal relationships between sovereign spreads, a measure of default risk, and the size of the informal sector. The results indicate that the size of the informal sector is as important as formal output variations in explaining sovereign spreads. Therefore, policies designed by emerging economies to reduce the size of the informal labor market are important to decrease the costs of borrowing in international financial markets and increase the financing options for productive investment.

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The Regulation of International Financial Markets

10.1017/cbo9780511494505 ◽

2006 ◽

Cited By ~ 3

Keyword(s):

Financial Markets ◽

International Financial Markets

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Der Aufschwung des Katastrophen-Kapitalismus

PROKLA Zeitschrift für kritische Sozialwissenschaft ◽

10.32387/prokla.v36i143.556 ◽

2006 ◽

Vol 36 (143) ◽

pp. 177-183

Author(s):

Naomi Klein

Keyword(s):

Natural Disaster ◽

International Monetary Fund ◽

Bush Administration ◽

The Us ◽

Us Government ◽

The International Monetary Fund

Fitting to its doctrine of preventiv war, the Bush Administration founded a bureau of reconstruction, designing reconstruction plans for countries which are still not destroyed. Reconstruction after war or after a “natural disaster” developed to a profitable branch of capitalist investment. Also the possibilities to change basic political and economic structures are high and they are widely used by the US-government and institutions like the International Monetary Fund.

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