The United States: Spillover Report: 2011 Article IV Consultation

International Monetary Fund

No 2011/203, IMF Staff Country Reports from International Monetary Fund

Abstract: The size of the U.S. economy and, in particular, the global dominance of its financial markets creates uniquely large policy spillovers. Concerns that the end of QE2 could lead to a rapid reversal of emerging market capital flows appear overblown. A credible plan for a gradual U.S. fiscal consolidation would likely have limited short-term spillovers and substantial longer-term benefits. Overall, U.S. and foreign goals appear better aligned for U.S. fiscal and financial policies than for monetary policies. Fiscal consolidation and sounder financial regulation will help.

Keywords: ISCR; CR; interest rate; financial market; exchange rate risk; market response; risk premium; credit default swap; global bond; asset price; Treasury yield; banking sector; Spillovers; Emerging and frontier financial markets; Yield curve; Exports; Global; Europe; Central America (search for similar items in EconPapers)
Pages: 77
Date: 2011-07-25
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