As a developing economy, we run a large current account deficit (CAD) that has in recent period expanded relative to our historical record. We need capital flows to finance the CAD. We have an express preference for equity flows over debt flows, for direct investment over portfolio investment and for long term over short term flows and.
A few weeks ago, during the annual central bankers’ meeting in Jackson Hole, Mario delivered a speech entitled “The current crisis and beyond”. In his speech, he pointed out three elements that mark the cornerstones of the work plan of the FSF for the month ahead.