Moghadam: Good Policies are Safeguards Against Crisis Effects

Countries with sound policies and those that reduced their financial vulnerabilities before the global financial crisis hit were able to cope better with its effects, the International Monetary Fund found after studying how emerging markets dealt with the downturn. These countries “experienced smaller growth collapses, had more space to take countercyclical policy measures, and are recovering faster from the crisis,” Reza Moghadam wrote in a blog, in description of the report’s findings.

Overall, the report shows that good policies results in good outcomes, Moghadam said.