We used real-time input to focus on four critical nodes of the global financial system: financing of the real economy; access to U.S. dollar funding; meeting financial intermediaries’ liquidity demands; and monitoring counterparty risks. This open communication and real-time monitoring improved policymakers’ clarity around executing emergency measures to help stabilize domestic economies.
The simulation results showed that by 2020 a comprehensive package of policy measures, encompassing both product market and labour market reforms, could lead to a 2.2% increase in GDP, compared to the base line scenario. Employment levels could rise by about 1.5% over the same horizon. Such an outcome would also greatly support the ongoing fiscal consolidation process.