IMF Research Bulletin, December 2009

IMF Research Bulletin, March 1, 2010

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Examines credit conditions and recoveries from financial crises.
Highlights that the prospects for recovery from the 2008 global financial crisis "appear to be on the horizon."
Identifies the central question: what determines the path of recovery from a recession associated with a financial crisis.
Stresses the policy relevance of this question as policymakers debate how soon to withdraw the extraordinary monetary and fiscal stimulus implemented soon after the onset of the crisis.

Analyzes inflation targeting in emerging economies.
Situates inflation targeting alongside other topics such as inflation, monetary policy, money, prices, and financial institutions.

Recovery prospects from the 2008 global financial crisis appear to be on the horizon.
The timing and sequencing of withdrawal of extraordinary monetary and fiscal stimulus is a critical policy issue tied to the determinants of recovery paths after financial-crisis recessions.

Policymakers face a tradeoff in deciding how soon to withdraw extraordinary monetary and fiscal stimulus put in place soon after the onset of the crisis.
Understanding determinants of recovery paths from financial-crisis recessions is essential to inform these withdrawal decisions.

Subjects: Credit, Financial crises, Financial institutions, Inflation, Inflation targeting, Monetary policy, Money, Mortgages, Prices
Keywords: Africa, contagion risk, Credit, Global, Inflation, Inflation targeting, IRB, Mediterranean quartet, Mortgages, policies to address banking sector weakness, policy, productivity spillover, staff position note, Sub-Saharan Africa