IMF Reform: The Unfinished Agenda

José De Gregorio, Barry Eichengreen, Takatoshi Ito, Charles Wyplosz 11 September 2018



Table of contents

Executive summary

1 Introduction

2 How the world has changed

2.1 Capital flow volatility
2.2 Sudden stops
2.3 Exchange rates, capital accounts and IMF programmes
2.4 Inflation targets
2.5 Capital controls
2.6 Reserve accumulation
2.7 New instruments: Flexible credit lines and agreements
2.8 Conclusions

3 How the IMF has changed

3.1 Improved bilateral and multilateral surveillance
3.2 Capital controls
3.3 Debt sustainability
3.4 Exchange rates
3.5 IMF resources
3.6 Precautionary arrangements
3.7 A fast qualification facility
3.8 Streamlined structural conditionality
3.9 Transparency

4 The emergence of regional funds

4.1 Pros and cons of regional funds
4.2 Chiang Mai
4.3 Fondo Latino Americano de Reservas (FLAR)
4.4 The European Stability Mechanism
4.5 The IMF’s response
4.6 Dealing with disagreements 53
Appendix: List of regional funds 56

5 China

5.1 The rise of China
5.2 Challenging the dollar and renminbi internationalisation
5.3 New international institutions
5.4 Implications for the IMF: Many questions and few certainties

6 Governance

6.1 Independent decision makers
6.2 Selection procedures
6.3 Accountability


Professor of Economics, University of Chile

Professor of Economics and Political Science at the University of California, Berkeley; and formerly Senior Policy Advisor at the International Monetary Fund. CEPR Research Fellow

Professor of International and Public Affairs, Columbia University; Professor, GRIPS; CEPR Research Fellow

Professor of International Economics, Graduate Institute, Geneva; Director, International Centre for Money and Banking Studies; CEPR Research Fellow


CEPR Policy Research