Review of the Policy Coordination Instrument and Proposal to Eliminate the Policy Support Instrument

The Policy Coordination Instrument (PCI) is a non-financial instrument, designed to help countries demonstrate their commitment to a reform agenda and unlock financing from other sources. It supports countries in designing and implementing a full-fledged macroeconomic program of policies that meet u...

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Bibliographic Details
Corporate Author: International Monetary Fund Strategy, Policy, & Review Department
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:Policy Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Economics 
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653 |a Short-term Capital Movements 
653 |a Political Economy 
653 |a Industries: Financial Services 
653 |a Monetary economics 
653 |a Financial institutions 
653 |a Development economics & emerging economies 
653 |a Current Account Adjustment 
653 |a Balance of payments 
653 |a Long-term Capital Movements 
653 |a Balance of payments need 
653 |a Exports and Imports 
653 |a Sustainable Development 
653 |a Social welfare & social services 
653 |a International economics 
653 |a Political economy 
653 |a Social Services and Welfare 
653 |a Economic assistance 
653 |a Poverty reduction strategy 
653 |a Capital inflows 
653 |a Foreign Aid 
653 |a Financial Institutions and Services: General 
653 |a Foreign aid 
653 |a Poverty 
653 |a Monetary policy 
653 |a Capital movements 
653 |a Monetary Policy 
653 |a Money and Monetary Policy 
653 |a Government Policy 
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520 |a The Policy Coordination Instrument (PCI) is a non-financial instrument, designed to help countries demonstrate their commitment to a reform agenda and unlock financing from other sources. It supports countries in designing and implementing a full-fledged macroeconomic program of policies that meet upper credit tranche standards and address imbalances, prevent crises, build buffers, and enhance stability. The PCI is available to all member countries, follows a fixed review schedule, and uses a review-based approach to monitoring conditionality. Based on a stock taking of the experience with the PCI, this review proposed reforms to ensure that the PCI remains fit-for-purpose in today’s complex global economic environment while maintaining its strong signaling function. The review also made the case for eliminating the Policy Support Instrument (PSI), which has been replaced by the PCI as the signaling instrument of choice