IMF Weekend Read

 

Dear MARIA,   In today's edition, we highlight: New F&D magazine: Stablecoins and the Future of Finance Hélène Rey on Stablecoins, Tokens, and Global Dominance Podcast: Gita Gopinath on her Career at the Fund Foreign Investments in GCC Help Drive Growth and Diversification Mauritius' Economy Depends on Sustainable Public Finances F&D MAGAZINE Technology, Payments, and the Rise of Stablecoins (Credit: Keith Negley) Three years ago, Finance & Development devoted a full issue to anticipating “The Money Revolution,” driven by innovations in finance, such as crypto assets. That revolution, writes F&D editor-in-chief Gita Bhatt, is now unfolding.   The September issue of F&D looks at the new frontiers of finance, where technology, data, and changing societal values are reshaping how people and institutions move money and trade financial assets, who provides liquidity, and where new risks are brewing.   Stablecoins, a form of digital asset backed by currencies or government bonds, are one of these frontiers. Stablecoin companies have racked up millions of users globally, transacting across borders 24/7 at very low cost. New legislation in the US and other countries may further boost their growth.   There is a lot of room for innovation in payment systems and financial markets in general, Bhatt writes. The key is to balance the risks and benefits through clear regulation that protects consumers and investors and limits spillovers. “Who knows what new possibilities such innovations will unlock along the way?” F&D MAGAZINE Stablecoins, Tokens, and Global Dominance (Credit: IMF Photo) Technology is poised to shake up the international monetary and financial system. Stablecoins, tokens and other innovations could unleash new functionality, such as programmability, and unify the way capital flows across borders and asset classes, Hélène Rey of the London Business School writes in F&D magazine.   But, she adds, they could also threaten government revenues and take us back to a 19th century world of private money issuers competing for seigniorage, which would fragment and destabilize the international financial system.   “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences.” Read More PODCAST Gita Gopinath Reflects on her Career at the Fund (Credit: IMF Photo) A lot has happened in the global economy since 2019, and few people know that better than Gita Gopinath. As the IMF Chief Economist and subsequently the institution’s First Deputy Managing Director, she navigated unprecedented global crises, including the pandemic and the ensuing great lockdown, wars in Ukraine and the Middle East, inflation, and geopolitical fragmentation. Her career as a Professor at Harvard University was put on hold to take on those IMF roles, but now she’s back. How will the 2025 version of Professor Gopinath compare to the 2018 version? In this podcast, Gita Gopinath reflects on her experiences at the Fund and what she’s taking back with her to Harvard.  Listen to the Podcast WORKING PAPERS Foreign Investments in GCC Help Drive Economic Growth and Diversification New analysis by IMF staff shows how Gulf Cooperation Council (GCC) countries are using international investments to grow and diversify their economies beyond oil. Since the pandemic, GCC countries have seen increased foreign investment inflows. And investment activity overall has increasingly shifted toward services, especially transportation, logistics, IT, and business services.   Both foreign direct investment (FDI) and domestic investment contribute positively to GCC non-hydrocarbon GDP growth and diversification. But the new analysis also shows that FDI has nearly three times the growth impact of domestic investment. This is why countries in the region need to build on the progress made in attracting FDI and improving the business environment. Read the Paper COUNTRY FOCUS Mauritius' Economy Depends on Sustainable Public Finances (Credit: Dmitry Chulov, Steve Goacher & Abdulkarim/iStock by Getty Images ) Mauritius is taking important steps to ensure its economy remains strong and sustainable. In a new Country Focus article, Mariana Colacelli and Felix Simione highlight how the island has grown into a diversified upper-middle-income country from an agricultural economy. But it now faces challenges from high public debt, an ageing population, and growing public spending needs.   The government’s 2025–26 budget aims to increase revenue, reform pensions, and spend more efficiently. Measures include reducing tax exemptions, gradually raising the retirement age, and targeting social support to the most vulnerable. These reforms aim to lower debt from 87% of GDP in 2024 to 75% by 2030, while maintaining economic growth and intergenerational fairness. Read the Article MARK YOUR CALENDAR SEPTEMBER 18, 2025 AT 10:50 AM EST   2025 Michel Camdessus Central Banking Lecture Join us for the IMF’s twelfth Michel Camdessus Central Banking Lecture by Chang Yong Rhee, Governor of the Bank of Korea. The lecture will be followed by a conversation between the Governor and IMF Managing Director Kristalina Georgieva. Watch here Thank you very much for your interest in the Weekend Read! Be sure to let us know what issues and trends we should have on our radar.     Noha Elbadawy  Editor | IMF Weekend Read   NElbadawy@imf.org Stay connected with the International Monetary Fund:       This email was sent to politikimx@gmail.com on behalf of: International Monetary Fund 1900 Pennsylvania Ave NW · Washington, DC · 20431