Strengthening the financial instruments, Microeconomics

Assignment Help:

Strengthening the Financial Instruments - rationale in era of globalisation:

With this in view, following suggestions can be made:

i) Finance must be conditioned on a policy framework strong enough and timely enough to restore confidence. An institution's resources cannot compensate for a lack of policy credibility, and lending official resources to fund an inadequate policy efforts may make the situation worse. 

ii) The scale of finance provided has to be calibrated to the needs, an the needs can we substantial in today's world. The BW institutions can only fill part of the gap, but there have to be able to fill a credible share of the gap if these have to play a successful part in catalysing other resources to flow. 

iii) Flexibility to structure programmes appropriate to the circumstances and the borrower's policy effort is essential. The BW institutions need to be able to substantially frontload financial packages, when this is warranted. Making available small trenches of resources over the life of a programme does little to address the realities of open emerging market economies facing liquidity problems. Rather than the classis staircase pattern of disbursements, the institutions should consider, in some cases, providing a larger up front trance that floats and is available it stress materialises and policy is responding appropriately.

iv) The BW institutions should stand ready to support countries in pursuing reasonable restructuring proposals when narrated by the circumstances. Official financial resources in that context an be helpful in meeting some targeted needs. 

v) The institutions need a more credible capacity to withstand arrears, so that these do not face the reality or the perception that these can be induced to accept weak programmes only to allow them to refinance their exposure.


Related Discussions:- Strengthening the financial instruments

Minimum welfare level for the poorest senior household, Consumer Behavior: ...

Consumer Behavior: The government considers different calculations to help senior citizens with their increasing heating bills. One proposal on the table is to pay 20% of senio

Please help, 1. Suppose the banking system has reserve of $750000, demand d...

1. Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%. a. if the fed now purchases $125,000 worth of govt bonds from t

Elimination of waste - stock management, Elimination of waste - Stock Manag...

Elimination of waste - Stock Management Here is a definition of the elimination of waste: Anything other than the minimum amount of equipment, material, parts and working t

Oparation research, discuss the significance of paration research

discuss the significance of paration research

What is meant by labor force, What is meant by labor force?    In econom...

What is meant by labor force?    In economics the labor force is the group of people who have a potential for being employed. Normally, the labor force having of everyone above

Real business cycles, REAL BUSINESS CYCLES: The extent of this module ...

REAL BUSINESS CYCLES: The extent of this module is partly indicated in the title. It is about real business cycle (RBC) theory. In addition, it exposes you to New Classical Bu

Protec tionism and free trade, what is the south africas governments standp...

what is the south africas governments standpoint on international trade

Supply, The table shows the demand schedule of Taylor Swift’s concert ticke...

The table shows the demand schedule of Taylor Swift’s concert ticket. Draw the demand curve for her concert ticket

Closesubstitute goods, Closesubstitute goods: The number of closesubstit...

Closesubstitute goods: The number of closesubstitute goods The more substitutes of good has and the more close the substitutes are, the more elastic the demand for the good. Fo

Determine the cost efficient levels of emissions reduction, Determine the C...

Determine the Cost Efficient Levels of Emissions Reduction Two firms produce a pollutant called Q.  The total cost of reducing emissions of Q are as follows for Firm 1 and Fir

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd