The IMF is reviewing its approach to unorthodox central bank tools such as currency intervention and capital-flow management as it looks to create a modern policy framework that better reflects the needs of developing economies in a more integrated global market system.
The move marks a departure from its traditional role as an advocate of conventional monetary policy.
The Fund is in talks with a number of countries, finance ministers and central banks to devise a new integrated policy framework, David Lipton, first deputy managing director of the IMF, tells Euromoney.
“Our aim is that over time we will be able to have a more complete playbook to help [central banks],” he says.
“Our advice will be to countries that are free sailing in choppy waters, which is different to a programme or a crisis.
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