Meeting global challenges requires financial innovation

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Meeting global challenges requires financial innovation
GlobalChallengesRequires
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WASHINGTON, D.C. — No one doubts that many of the world's biggest challenges, such as mitigating climate change, strengthening financial-market stability, and boosting economic growth in developing and emerging economies, are deeply intertwined. Multilateral cooperation will, thus, lead to better outcomes than uncoordinated national responses.

WASHINGTON, D.C. — No one doubts that many of the world's biggest challenges, such as mitigating climate change, strengthening financial-market stability, and boosting economic growth in developing and emerging economies, are deeply intertwined. Multilateral cooperation will, thus, lead to better outcomes than uncoordinated national responses. What is less obvious is which of the many proposed approaches to addressing global challenges should be pursued.

If executed well, this approach would sharply reduce the risk of debt restructuring or rescheduling in the case of earnings shortfalls. Crucially, SCDIs also provide additional returns to investors if outcomes are more favorable than anticipated.

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Global Challenges Requires Financial Innovation

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