IMF Economic Review

• Pages: 11-11

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://www.springer.com/economics/

journal/41308