Investment funds are important players in global financial markets. This column examines their behaviour and interaction with other investors during stress periods on European sovereign bond markets. It shows that investment funds are the only investor group that exhibits a distinctly procyclical behaviour by persistently selling euro periphery sovereign debt in response to euro disaster […]
Over the past two decades, many developing countries have made remarkable progress in reducing poverty, expanding access to education and health care, and investing in infrastructure. These gains were the result of sound national policies and coordinated efforts by the international community, often financed through responsible borrowing. But the road ahead looks more precarious. Debt […]
Forecasts underpinning budgetary plans have a well-documented impact on fiscal performance especially when policymakers view the world through rosy lenses. Combined with inertia in the implementation phase, optimism contributes to a possible deficit bias and the accumulation of government debt. This column introduces the new Forecast Tracker of the Secretariat of the European Fiscal Board, […]
