Policy Papers

Toward an Integrated Policy Framework

Publication Date:

October 8, 2020

Electronic Access:

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Summary:

Policymakers often face difficult tradeoffs in pursuing domestic and external stabilization objectives. The paper reflects staff’s work to advance the understanding of the policy options and tradeoffs available to policymakers in a systematic and analytical way. The paper recognizes that the optimal path of the IPF tools depends on structural characteristics and fiscal policies. The operational implications of IPF findings require careful consideration. Developing safeguards to minimize the risk of inappropriate use of IPF policies will be essential. Staff remains guided by the Fund’s Institutional View (IV) on the Liberalization and Management of Capital Flows.

Series:

Policy Paper No. 2020/046

Subject:

Balance of payments Capital flows Currency markets Exchange rates Financial markets Financial sector policy and analysis Financial sector stability Foreign exchange Integrated Policy Framework

Frequency:

occasional