IMF Economic Review

Summer 2017
11 11
whether they would ta ke o and revolutionize the world.
e short answer is no.
is paper takes a bit of a step back a nd proposes a
framework for thin king about how ntech could aect the
nancial sec tor and how regulation might need to respond. It
then applies that fra mework to gauging implications for cross-
border payments—a subject at the hear t of the IMF mandate.
Question 7: Clearly there are a lot of emerging issues that the
industry is still grappling with. With that in mind, how do you
see the IMF’s work on fintech evolving?
ere is potentially an enormous a mount of work to do in
think ing through various scenarios of ntech d evelopment
and adoption.
Fintech could aect any of t he ve key needs for nancial
services, a s seen from the perspective of end-users: paying,
saving, borrowing , managing risks, and get ting advice on
nancial ser vices. In this Sta Disc ussion Note, we tackled
only the subset of payments.
Future work will li kely focus on areas with the potential
for a signicant impact on na ncial stability and inclusion
and monetary polic y transmission.
Fintech’s effect on monetary polic y transmission has
generated an interesting debate, su mmarized in the
paper, on whether central bank s should introduce digita l
currencies. Would monetary polic y transmission change?
Would banks disappear? C ould privately issued vi rtual
currencies compete or possibly even do better t han
traditional cu rrencies? Would weak currencies—issued
by central bank s lacking credibility—disappea r? Would a
first mover’s currency become the new reser ve currency?
Who said economics was bori ng?!
IMF Economic Review
IMF Economic Review
is the ocial resea rch
journal of the Internationa l
Monetary Fund. e journa l
is dedicated to publishing
peer-reviewed, high qual ity,
context related academic
research that addresses
important policy quest ions.
Following is a listi ng of
articles featured i n the latest
issue of the journal:
Macroeconomic Eects of Capital Account Regulations
Bilge Erten and José Antonio Ocampo
Fiscal Devaluation in a Monetary Union
Philipp Engler, Giovanni Ganelli, Juha Tervala,
and Simon Voigts
Distributional Consequences of Fiscal Adjustments:
What Do the Data Say?
Jaejoon Woo, Elva Bova, Tidiane Kinda, and Y. Sophia Zhang
Shiing Motives: Explaining the Buildup in
Ocial Reserves in Emerging Markets Since the 1980s
Atish R. Ghosh, Jonathan D. Ostry, and
Charalambos G. Tsangarides
Do Borders Really Slash Trade? A Meta-Analysis
Tomas Havranek and Zuzana Irsova
Virtuous Circles and the Case for Aid
Patrick Carter and Jonathan R. W. Temple
Non-FDI Capital Inows in Low-Income Countries:
Catching the Wave?
Juliana D. Araujo, Antonio C. David, Carlos van Hombeeck,
and Chris Papageorgiou
To learn more about the journal and to view free a rticles
online, visit: htt p://

To continue reading