2nd Joint IMF-OECD-World Bank Conference on Structural Reforms
The long-lasting but heterogenous economic damages suffered by different advanced and emerging economies following the 2008 global financial crisis and previous crises have highlighted the need for a better understanding of the drivers of economies’ resilience to financial and other major economic shocks. Economic resilience can be strengthened by policies and institutions that help mitigate the consequences of severe recessions. This means identifying policy settings and mechanisms that can be put in place ex ante to help absorbing the impact of such events and boost the capacity of the economy to quickly recover.
Resilience is likely to depend in large part on widely studied risk factors (private and public debt levels and structure, the health of banks and non-bank financial institution, etc) and policies (monetary, fiscal, exchange rate, macro-prudential). However, structural policies, such as in the areas of labor and product markets, openness to international trade and finance, and depth of domestic financial markets, are also likely to play a role; these will be the focus of the conference.
Despite efforts by governments to repair structural deficiencies and financial vulnerabilities following the global financial crisis, several risks still remain and new ones have emerged. These call for preparing for the next downturn. The conference will shed light on the potential contribution of structural reforms in building the needed resilience.