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Similarities and Differences with 2008 Crisis
- The current economic situation shares similarities with the 2008 financial crisis, including maturity mismatch.
- A key difference is the Federal Reserve's significant bond portfolio, funded by overnight borrowing.
World Bank and IMF Growth Forecasts
- Both the World Bank and IMF predict weak growth for 2023, with the World Bank's forecast slightly more pessimistic.
- The World Bank uses market-based exchange rates, leading to a forecast of 2% growth, while the IMF's is around 2.4%.
Shifting Debt Landscape in Developing Countries
- The nature of debt owed by developing countries has shifted from US banks to China and the Euro bond market.
- Discussions are underway to address debt restructuring, including data sharing and burden sharing among creditors.