Policymakers often face difficult tradeoffs in pursuing domestic and external stabilization objectives. The paper reflects staff’s work to advance the understanding of the policy options and tradeoffs available to policymakers in a systematic and analytical way. The paper recognizes that the optimal path of the IPF tools depends on structural characteristics and fiscal policies. The operational implications of IPF findings require careful consideration. Developing safeguards to minimize the risk of inappropriate use of IPF policies will be essential. Staff remains guided by the Fund’s Institutional View (IV) on the Liberalization and Management of Capital Flows.

The interconnected challenges of our times call for a coherent and multidimensional approach to public governance. The OECD Policy Framework on Sound Public Governance provides governments at all levels with an integrated diagnostic, guidance and benchmarking tool that aims to improve the quality of public governance – an objective that takes on immediate strategic importance for governments as they strive to manage the COVID-19 crisis and plan for a sustainable and inclusive recovery.

The book covers a wide range of topics of relevance to policymakers in countries that have sovereign wealth funds (SWFs) and those that receive SWF investments. Renowned experts in the field have contributed chapters. The book is organized around four themes: (1) the role and macrofinancial linkages of SWFs, (2) institutional factors, (3) investment approaches and financial markets, and (4) the postcrisis outlook. The book also discusses the challenges facing sovereign wealth funds in the coming years, from an inside perspective on countries, including Canada, Chile, China, Norway, Russia, and New Zealand. Economics of Sovereign Wealth Funds will contribute to a further understanding of the nature, strategies and behavior of SWFs and the environment in which they operate, as their importance is likely to grow in the coming years.

This note guides policy advice on the use of foreign exchange intervention (FXI) as part of the Integrated Policy Framework (IPF) in Fund surveillance. The note provides general principles for the advice in countries with flexible exchange rates and sets out three use cases for FXI that are tied to specific frictions. It explores the use of FXI as part of an overall policy response, allowing the advice to differ with shocks, frictions, and country-specific circumstances.

This paper jointly analyzes the optimal conduct of monetary policy, foreign exchange intervention, fiscal policy, macroprudential policy, and capital flow management. This policy analysis is based on an estimated medium-scale dynamic stochastic general equilibrium (DSGE) model of the world economy, featuring a range of nominal and real rigidities, extensive macrofinancial linkages with endogenous risk, and diverse spillover transmission channels. In the pursuit of inflation and output stabilization objectives, it is optimal to adjust all policies in response to domestic and global financial cycle upturns and downturns when feasible—including foreign exchange intervention and capital flow management under some conditions—to widely varying degrees depending on the structural characteristics of the economy. The framework is applied empirically to four small open advanced and emerging market economies.

Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.

In the movement toward standards-based education, an important question stands out: How will this reform affect the 10% of school-aged children who have disabilities and thus qualify for special education? In Educating One and All, an expert committee addresses how to reconcile common learning for all students with individualized education for "one"â€"the unique student. The book makes recommendations to states and communities that have adopted standards-based reform and that seek policies and practices to make reform consistent with the requirements of special education. The committee explores the ideas, implementation issues, and legislative initiatives behind the tradition of special education for people with disabilities. It investigates the policy and practice implications of the current reform movement toward high educational standards for all students. Educating One and All examines the curricula and expected outcomes of standards-based education and the educational experience of students with disabilitiesâ€"and identifies points of alignment between the two areas. The volume documents the diverse population of students with disabilities and their school experiences. Because approaches to assessment and accountability are key to standards-based reforms, the committee analyzes how assessment systems currently address students with disabilities, including testing accommodations. The book addresses legal and resource implications, as well as parental participation in children's education.