The Policy Note takes stock of the nature of the financial, technical and institutional support and preferential trade-related treatments that have been provided to LDCs. It provides an assessment of how useful these existing support measures have been and identifies ways in which they can be made more effective.
The Global Policy Model (GPM) is a tool for investigation of policy scenarios for the world economy . The model allows users to specify alternative assumptions about the future economic context and policy responses in different groups of countries and trace macro-economic outcomes over short, medium and long-term timescales.
Short term and medium term reasons to accumulate foreign exchange reserves
Consider a resource exporting country that faces positive terms of trade shock (say increased prices of exported resources) and/or simultaneous inflows of capital. Or, imagine the shock is negative – e.g., deterioration of the current account and outflows of capital. There are several options to cope with these shocks which are discussed in this policy note. Advantages and disadvantages of these optios are analyzed.
Short term and medium term reasons to accumulate foreign exchange in sovereign wealth funds
Short term and long term considerations for policies designed to influence real exchange rate.