Revista de Economía y Negocios

Macro-Financial Linkages and the Financial System

Abstract

Yachao Wang*

The IMF's duty to oversee the stability of the global financial system has long been centred on macro financial linkages. With the onset of the financial crisis, the Fund has used this research to add to vital discussions on the types of suitable national and international policy responses. Since few collections have been published in this field, the current time is a wonderful chance to evaluate this body of work by IMF personnel and to share it with a wider audience. The best literature by IMF economists on macroeconomic issues is collected in this volume, which also emphasises the ideas and methods that have shaped IMF thought in the field as a whole. The book's chapters fall into one of three categories: macroeconomic policy, business and financial sector challenges, including domestic and international financial liberalisation; financial crises and boom-bust cycles; financial integration, financial liberalisation, and economic performance. With the emergence of new theories about how monetary policy affects real economic activities over the past few years, there have been significant changes in the way the financial system operates and how monetary policy is carried out, which have advanced our understanding of the macro financial linkages.