The IMF promotes effective frameworks of the central bank through multilateral research, surveillance and policy papers, bilateral dialogue with its member countries, and research and policy analysis for data collection. To improve the global outcomes, researchers do Multilateral surveillance, policy analysis:
- To avoid potential side effects from implementing an exit from unconventional monetary policy and established principles for evolving monetary policy regimes in low-income countries, The IMF has provided policy advice.
- The Fund has also examined interactions between monetary and macroprudential policy and provided principles for establishing well-functioning macroprudential frameworks.
- Interactions between monetary and macroprudential policy have also been examined by Fund and provided principles for establishing that macroprudential frameworks are well functioning.
What does the international monetary fund (IMF) seek to accomplish for developing countries?
The IMF is in regular dialogue with member country
In a regular dialogue with member country central banks through bilateral surveillance (Article IV consultation), technical assistance, and FSAPs:
- The IMF delivers monetary policy action to achieve stable and low inflation and establish macroprudential policy frameworks and effective monetary policy.
- Evaluation of financial systems and in-depth advice is provided to member countries by Financial Sector Assessment Program (FSAP). To contain and manage financial stability risks, including the macroprudential policy framework, is often covered in dedicated technical notes (e.g., Finland, Netherlands, and Romania).
- IMF arrangements supports country programs, often include measures to strengthen monetary policy and central bank governance.
- Developing countries, it requires Technical assistance and more effective legal frameworks, institutions, and capacity. Topics include exchange rate regimes, monetary policy frameworks, moving from targetting a monetary aggregate to inflation targeting, improving central bank operations, and macroprudential policy implementation.
To inform the policy of research and development, the IMF is also engaged with its members to develop and maintain databases:
- The IMF has made a record of some countries by tracing their monetary policy arrangements (AREA), also central banks with legal frameworks (CBLD), and also their monetary operations and instruments (MOID).
- The IMF has just launched the latest annual survey of macroprudential measures and institutions. Details on the design of the macroprudential measures and enabling comparisons across counties and over time will support IMF advice and policymakers worldwide.
- Historical database comprehensively compiled my IMF on macroprudential measures (iMaPP) that integrates the latest survey information and assesses effects of macroprudential instruments. IMF economists used this database to measure policy effects, and it is also in the approach to researchers around the world.
- In response to the COVID-19 pandemic, series of notes were released by IMF to help members record the economic impact. Monetary and Financial policies notes cover different topics on monetary policy and central banking.
- The IMF has recently bound a structured and comprehensive collection of various central banks’ indirect market interventions. The updated established Central Bank Interventions Database (CBID) is presently being used by IMF experienced economists to trace the authority’s efforts to support financial markets amid the ongoing COVID-19 pandemics.
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