Wednesday, October 8, 2008

More from the IMF

The Global Financial Stability Report of the IMF has been released. The focus is unsurprisingly the financial crisis, warning on the consequences of failing to respond to the turmoil. Moreover emerging markets have not been spared either. The report has interesting sections on the causes and consequences of the elevated LIBOR rates and a discussion of mark-to-market accounting.

The IMF also released its projections (first two chapters of the WEO), and they don't look good, with global growth expected to fall to 3.9% in 2008 and 3.0% in 2009.

Also of interest is a recent IMF working paper that looks at how problems with subprime mortgages managed to spread and threaten the whole financial system- a summary of the paper is here.

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