A Few White Papers
you are currently viewing::IMF Working Paper-Making Stablecoins StableApril 10, 2026-Summary This paper offers a theoretical framework to navigate the tradeoff between maintaining stability and incentivizing issuance. Based on the Diamond and Dybvig (1983) model of bank runs- the paper shows that an unregulated private equilibrium is suboptimal. Stablecoin issuers hold risky assets to maximize profits- increasing run risk. A social planner can improve the equilibrium by requiring the backing of stablecoins with a safe asset (such as central bank reserves in a narrow bank setting)- and creating conditions for other sources of revenue for issuers (such as central bank reserves remuneration or policies for payment data utilization). The model offers a baseline for the ongoing policy discussion while identifying considerations for further study. Source: imf.org |
IMF Working Paper: Understanding China's 2024-25 Frontloading from the Lens of Product-Level Export Baskets
January 23, 2026-Summary
A striking feature of US-China trade tensions in mid-2025 is China's acceleration of exports to the US ahead of new tariff increases, a phenomenon we term export frontloading. To understand how this was achieved, we develop a factor model analytical framework to characterize China's product-level exports, across time and destinations, according to a set of latent export baskets.
IMF Working Paper: Structural Reforms in Saudi Arabia Since 2016
January 23, 2026-Summary
Since 2016, Saudi Arabia's Vision 2030 reforms have improved governance, business regulations, capital markets, the labor market, and the external sector, narrowing structural gaps with frontier economies and improving economic performance.
IMF Working Paper: Structural Reforms in Saudi Arabia Since 2016
January 23, 2026-Summary
Canada is adjusting to the largest shift in North American trade policy since
NAFTA. The economy has been more resilient than initially feared, supported by
USMCA exemptions, resilient consumption, and policy cushioning.
IMF Working Paper: From Par to Pressure: Liquidity, Redemptions, and Fire Sales with a Systemic Stablecoin
January 16, 2026-Summary
Fiat-backed stablecoins are expanding, and their issuers may attain systemic relevance as reserve portfolios grow and as they become increasingly intertwined with financial markets. This paper analyzes the resulting risks and the design choices that can mitigate them. A detailed financial-economics discussion forms the core of the paper.
IMF Working Paper: Market Access and High Spread Issuances
January 16, 2026-Summary
We investigate the factors determining emerging markets' likelihood to access international capital markets. First, we develop a simple model to outline the theoretical foundations of market access, highlighting the role of risk, spreads, net worth, and the cost of repaying debt. The model also shows a trade-off between risk insurance and moral hazard and underscores the relevance of unconventional instruments such as guarantees and macro-contingent debt.
