IMF calls for policy cooperation as emerging economies join global financial market - ODS and Pilot

 

In the analytical chapters of its flagship Global Financial Stability Report, the IMF said that changes in emerging market asset prices explain over a third of the rise and fall in global equity prices and exchange rates.

 

According to the report, the impact of growth surprises from China on global equity prices has increased significantly over the past five years, but changes in Chinese asset prices tend to have little impact on asset prices elsewhere. - Ignition electrode (Spark plug) 

 

"Purely financial spillovers from China are still very small, but likely to grow considerably as China gradually continues to integrate into the global financial system," said Gaston Gelos, head of the Global Financial Stability Analysis Division at the IMF.

 

The report said that the financial integration has promoted more efficient asset prices and resource allocation, but amplified shocks and transmission of excess financial volatility. The significant growth in global capital flows brought by mutual fund investments is also affecting the nature and size of financial spillovers from emerging market economies, said the IMF. - Thermostat valve 

The IMF suggested that policymakers should enhance policy cooperation and surveillance in order to safeguard financial stability.