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Confronting the Hazards of Rising Leverage

March 29, 2021
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International reserves

Adequate Reserves Shield Economies From Shocks and Strengthen Resilience

March 5, 2026

Building foreign exchange reserves requires sound policies and takes time, but global efforts to lower the cost of holding them can help

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Debt

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Financial sector stability

Stock-Bond Diversification Offers Less Protection From Market Selloffs

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Diversification has become harder since 2020 as stocks and bonds tend to move in tandem during sharp selloffs, adding to financial stability concerns

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

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