IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2026-138.html

Resilience by Design: What Role Can Policy Frameworks Play in the Middle East and Central Asia?

Author

Listed:
  • Hasan Dudu
  • Mr. Troy D Matheson
  • Mr. Dirk V Muir
  • Karmen Naidoo
  • Salem M Nechi
  • Mr. Pedro C Rodriguez

Abstract

The changing global economic landscape is likely to expose the Middle East, North Africa, and Pakistan (MENAP) and Caucasus and Central Asia (CCA) regions to more frequent external shocks, putting a premium on resilient and flexible macroeconomic policy frameworks. By using empirical analysis and model-based scenarios, this paper highlights the important roles of policy frameworks in stabilizing MENAP and CCA economies against adverse global shocks. Two messages stand out from the analysis. First, as countries make progress toward diversifying their exports and deepening domestic financial markets, credible inflation-targeting monetary policy regimes that allow greater exchange rate flexibility could enable faster adjustment to adverse global shocks. Second, adopting strong fiscal rules could help better anchor long-term expectations, reduce risk premiums, and help support countercyclical fiscal responses.

Suggested Citation

  • Hasan Dudu & Mr. Troy D Matheson & Mr. Dirk V Muir & Karmen Naidoo & Salem M Nechi & Mr. Pedro C Rodriguez, 2026. "Resilience by Design: What Role Can Policy Frameworks Play in the Middle East and Central Asia?," IMF Working Papers 2026/138, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2026/138
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=576033
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2026/138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.