Does it happen to you that you carry an umbrella almost always in case it rains, and never need to use it except -of course- when it’s raining, and it’s precisely then that you realize that you forgot it? Isn’t it the case on any given day walking outside, that we are willing to pay more for an umbrella when it is pouring than when it is sunny? The umbrella is a device that … [Read more...] about Are multilateral banks really supporting countries in times of need?
As established in the Addis Ababa Action Agenda (2015), Multilateral Development Banks (MDBs) are expected to provide lending in the event of financial or economic shocks. Economists call this countercyclical lending. However, a recent study shows that while the MDB system as a whole acts countercyclically, in other words, lends less to a country during its booms and more … [Read more...] about The Challenge of Countercyclicality for Multilateral Development Banks