increasing the procyclicality of prices and liquidity. 23 applications of new technologies, such as high - frequency trading, algorithmic trading and robo - advisors, may improve market efficiency and reduce intermediation costs during normal times, but have the potential for making the behaviour of intermediaries ( or, indeed, even individual investors in the case of robo - advice ) more responsive to market news. more analytical work surely needs to be done, but available studies suggest that mutual fund investments affect price dynamics in less liquid markets, certain share pricing data from “ the world ’ s largest 500 asset managers ”, thinking ahead institute and pensions & investments joint research, based on 2017 figures for assets under management. i. ben - david, f. franzoni, r. moussawi, and j. sedunov, “ the granular nature of large institutional investors ”, nber working paper no. 22247, may 2016. see manconi a., massa m. and yasuda a., “ the role of institutional investors in propagating the crisis of 2007 – 2008 ”, journal of financial economics 104. more recently, i. ben - david, f. franzoni, r. moussawi and j. sedunov, show that ownership by large institutions predicts higher volatility and greater noise in stock prices ( “ the granular nature of large institutional investors ”, cepr discussion paper 13427, 2019 ). the international monetary fund global financial stability report, april 2015, reviews available evidence. see v. sushko and g. turner, “ the implications of passive investing for securities markets, ” bis quarterly review, march 2018, for a discussion of the issue. the evidence is ambiguous, see for example “ the shift from active to passive investing : potential risks to financial stability?, ” k. anadu, m. kruttli, p. mccabe, e. osambela, and c. h. shin, federal reserve board, feds wp 2018 - 060 ; also i. ben - david, f. franzoni, and r. moussawi, “ do etfs increase volatility? ”, nber working paper no. 20071, april 2014. iosco research report on financial technologies ( fintech ), february 2017. rules create first - mover advantage incentives, and the behaviour of portfolio managers displays significant herding tendencies

development committee ( joint ministerial committee of the boards of governors of the bank and the fund on the transfer of real resources to developing countries ) ninety - seventh meeting washington, d. c. – april 21, 2018 dc / s / 2018 - 0022 april 21, 2018 statement by ignazio visco governor of the bank of italy constituency of albania, greece, italy, malta, portugal, san marino and timor - leste statement by ignazio visco governor of the bank of italy constituency of albania, greece, italy, malta, portugal, san marino and timor - leste 97th meeting of the development committee april 21, 2018 washington, d. c. introduction the global economy is enjoying a moment of robust, synchronized growth. however, trade restrictions may cause an adverse global supply shock, which may be amplified by the pervasiveness of global value chains. this could be compounded by an adverse demand shock, given that the associated uncertainty could have a negative impact on decisions to invest and to consume. overall, this would lead to a global output contraction. global public debt as a share of gdp has expanded substantially since the 2008 financial crisis, notwithstanding the debate about deleveraging. the increase has been particularly acute in emerging economies, including those vulnerable to interest rate increases. the world bank should help these countries to use their budgetary lever to counteract the business cycle, focusing on the quality of public finance while protecting the poorest. despite all the relief efforts made by official creditors and traditional donors, debt sustainability is becoming a serious concern in many low - income countries that face higher liabilities and an increasingly complex creditor composition. this should prompt the wbg and the imf to develop a comprehensive joint action plan which carefully considers limits in ida countries ’ absorptive capacity, in order to avoid a further increase in debt vulnerabilities. strategic framework and reform agenda eradicating poverty and boosting shared prosperity requires differentiated approaches to specific categories of clients and a willingness to rebalance resource allocation. low income and fragile countries ’ vulnerabilities call for adequate safety nets and for institutions which can expand access to basic services. middle income countries need a more targeted poverty alleviation strategy, one that tackles institutional and policy constraints through higher value - added knowledge products, and which addresses the remaining infrastructure gap. a clearer ibrd graduation strategy must be pursued, building on the country partnership frameworks agreed upon with borrowers. it should more directly link access to wbg