TF9 International Finance
RESETTING THE GLOBAL FINANCIAL SAFETY NET FOR THE COVID-19 RECOVERY

ABSTRACT

The uneven post-pandemic recovery brings great challenges for global financial stability and sustainable growth. To meet the challenges ahead, we propose to reset the Global Financial Safety Net designated to provide financial assistance for countries in need in the following aspects: (1) boost the use of the IMF Special Drawing Rights, (2) update the IMF’s financing arrangements; (3) broaden the coverage and enhance the role of Regional Financial Arrangements; (4) coordinate national policies to mitigate negative effects of spillovers; and (5) align GFSN with the Sustainable Development Goals and the Paris Climate Agreement.

AUTHORS

Kevin P. Gallagher
Global Development Policy Center, Boston University

Haihong Gao
Institute of World Economics and Politics at the Chinese Academy of Social Sciences (CASS), Institute for World Economics and Politics

William N. Kring
Global Development Policy Center, Boston University

José Antonio Ocampo
School of International and Public Affairs, Columbia University

Ulrich Volz
Centre for Sustainable Finance, SOAS University of London

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