Macro-Financial Programming

The paper introduces practical extensions to IMF macroeconomic frameworks that incorporate banking-sector dynamics and macro-financial feedbacks, helping country teams better assess how financial conditions affect the real economy. By linking macroeconomic developments, banks' lending capacity, credit growth, and economic activity, it aims to strengthen the Fund's surveillance, lending, and capacity development. The paper also advances the IMF's broader efforts to improve macro-financial integration, building on recommendations from recent surveillance reviews through a collaborative effort across MCM, RES, and SPR.