Connecting the Dots Between Global Risks

IMF Blog, April 21, 2011

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Finance ministers and central bank governors identified continued and emerging risks to the global economy, including:
- higher food and fuel prices
- the disaster in Japan
- unrest in the Middle East
- lingering unemployment in parts of the world
- the risk of overheating in some dynamic emerging markets
The observations were made at the Spring Meetings of the IMF and World Bank in Washington.
Date: April 21, 2011

With the recovery described as "solidifying but still fragile," ministers emphasized strengthening the IMF’s surveillance—its economic assessment and analysis—to help countries take action to address risks and avoid future crises.
Singapore’s Finance Minister Tharman Shanmugaratnam (new chair of the International Monetary and Financial Committee) said the IMF will need to develop capabilities:
- “to address risks proactively, to anticipate possible scenarios that could turn out to be ugly, and to require that countries, including especially systemically significant countries, take actions early to prevent another major crisis.”

A proposed idea: a new consolidated report on multilateral surveillance that would include analysis about how economic problems in one part of the world might impact or “spillover” could affect others.
Managing Director Strauss-Kahn: “we are at Year One of the new multilateral surveillance for the Fund.”

IMF’s First Deputy Managing Director discussed outcomes of the meetings, noting:
- concerns about risks in the global economy
- important progress on a “multilateral cooperative approach on the various challenges we face.”
The First Deputy Managing Director’s interview covers progress by the G-20 and likely changes to the IMF’s multilateral surveillance.
Minister Tharman’s Spring Meetings interview elaborated on:
- the importance of better monitoring risks and spillovers
- his views on IMF governance reforms
- his role as the first IMFC chair from Asia

IMFBlog described as a forum for the views of IMF staff and officials on pressing economic and policy issues of the day.
The IMF is described as an organization of 191 countries, based in Washington D.C., working to foster global monetary cooperation and financial stability.
Disclaimer: “The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.”

Source: IMF iMFdirect blog post, April 21, 2011