After analyzing the different reasons why the financial system and also the regulatory framework induced procyclicality, this paper reviews the experiences of three countries which have introduced dynamic provisioning as a regulatory tool to limit procyclicality. The case of Spain - the country...

Asian countries are a clear example of how a developed financial system can help economic growth, soften the economic cycles and even contribute to reduce the desequilibriums of these economies, their high current account surpluses. This article analyses the evolution and development of the...

We examine some of the most basic devices that major central banks in Asia and the Pacific use to communicate with markets. First, we consider gradualism and reversal aversion in the setting of policy rates. We argue that in a world of uncertainty these patterns of behavior help market...

Using empirical analysis, complemented with case studies, this paper studies under which circumstances IMF programs manage to catalyze private capital flows into the countries concerned. While we found no catalysis in general, the situation differs very much depending on the type of capital flow...

In this paper we empirically examine the extent and properties of production sharing in Latin and North America as well as that in East Asia. In 2006, exports of parts and components from Latin and North America constituted 29.7% of the region’s exports of manufactured goods to the world. Both...

In this paper we explore empirically a long-standing question in the literature on finance for growth, namely whether the financial structure - in terms of the size of the banking system relative to the capital markets - matters for economic growth. We build upon the existing literature by...

This paper shows empirically that China's trade balance is sensitive to fluctuations in the real effective exchange rate of the renminbi, although the size of the surplus is such that exchange rate policy alone will be unable to address the imbalance. One of the main reasons why the reduction in...

Trade has always been a cornerstone of connectivity between nations around the world. However, the world order which was established after the second world war, based on the ideals of multilateralism, the rule of law, market economy and free trade, is undergoing massive shifts and facing a...

Drawing on a global database of media articles, we quantitatively assess perceptions of China’s Belt and Road Initiative (BRI) in different countries and regions. We find that the BRI is generally positively received. All regions as a whole, except South Asia, have a positive perception of the...