...This chapter explores the effects of creating a corporate bond market in emerging market economies on the efficiency of capital allocation. It argues that creating a corporate bond market and decoupling the banking sector from public finances reduces the fragility of the banking sector and shields...

...This chapter examines the state of fiscal accounts in advanced and emerging market economies from the postwar period until the outburst of the 2007 financial crisis, revealing some early symptoms of fiscal profligacy that eventually degenerated into fiscal stress. In G7 countries, general...

... economies (EMEs), but little progress has been made between the advanced economies and the EMEs. Basel Committee on Banking Supervision Emerging market economies EMEs Financial crisis of 2007–2009 Financial stability Financial Stability Board FSB International monetary and financial system IMFS...

...This chapter examines the drivers of exceptionally large net capital flows—surges—to emerging market economies. Most surges to emerging markets are driven by foreign investors rather than by retrenchment of domestic residents liquidating their investments abroad. Moreover, while both domestic...

...This chapter examines the extent to which large public debts will adversely affect investment, productivity, and growth. Drawing on data from a panel of advanced and emerging market economies in the period from 1970 to 2008, it shows that initial debt is inversely related to subsequent growth...

... Fiscal crisis Fiscal policy Fiscal sustainability Asset liability management Balance sheets government fiscal policy financial crisis fiscal stimulus emerging market economies public debt advanced economies fiscal deficits debt ratio government revenues monetary policy This chapter...