IMF Staff Country Reports

The United States: Spillover Report: 2011 Article IV Consultation

Publication Date:

July 25, 2011

Electronic Access:

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Summary:

The size of the U.S. economy and, in particular, the global dominance of its financial markets creates uniquely large policy spillovers. Concerns that the end of QE2 could lead to a rapid reversal of emerging market capital flows appear overblown. A credible plan for a gradual U.S. fiscal consolidation would likely have limited short-term spillovers and substantial longer-term benefits. Overall, U.S. and foreign goals appear better aligned for U.S. fiscal and financial policies than for monetary policies. Fiscal consolidation and sounder financial regulation will help.

Series:

Country Report No. 2011/203

Subject:

Banking Emerging and frontier financial markets Exports Financial crises Financial markets Financial sector policy and analysis Financial services International trade Spillovers Yield curve