National Council of Applied Economic Research
Emerging markets and developing economies are currently facing major challenges from global shocks including: a slowdown in global growth; food and energy price increases; decline in risk appetite of international investors; unsustainable debts in low-income countries; and ongoing climate risks. National policies have not sufficed to meet these challenges. Efforts at the national level must be complemented by changes in the global economic and financial architecture designed to make the world a safer place. In this paper, we focus on the financial aspects of such reforms. The financial agenda as we see it has seven key elements: (i) reform of central bank swap lines; (ii) reform of IMF contingent credit lines; (iii) SDR reallocation; (iv) reform of credit rating agencies; (v) creation of currency hedging instruments; (vi) inclusion of climate-resilient debt clauses in new debt instruments; and (vii) steps to streamline the debt restructuring process. We detail this agenda, and urge the G20 members to implement the recommended measures. Read more…
Barry Eichengreen is George C. Pardee and Helen N. Pardee Chair and Distinguished Professor of Economics and Professor of Political Science at the University of California, Berkeley, where he has taught since 1987. He is a Research Associate of the National Bureau of Economic Research (Cambridge, Massachusetts) and Research Fellow of the Centre for Economic... Read More
Poonam Gupta is the Director General of NCAER, and a member of the Economic Advisory Council to the Prime Minister of India. Before joining NCAER, she was the Lead Economist for Global Macro and Market Research at the International Finance Corporation and a Lead Economist for India at the World Bank. Prior to that, she was the Reserve... Read More