The IMF staff has taken these developments into account in the April 2017 World Economic Outlook (WEO) and forecasts that world GDP growth will be noticeably higher over the next two years than in 2016—a slight upward revision relative to the October 2016 WEO.5 There may well even be some chance that foreign economies kick into gear enough that U.S. and foreign business conditions become reasonably well aligned, as occurred during the U.S. monetary tightening cycles that began in 1999 and in 2004.
The institutions themselves may also derive benefit from improved transparency. Creating a modicum of trust in the eyes of the general public through the regular flow of reliable information lowers the level of susceptibility to market uncertainty, enhances the accessibility of the capital markets and promises more favourable refunding conditions. Again, banking supervisors can expect compliance with prudential rules to be enhanced as well.