“This Semi-Annual Report to Congress on International Economic and Exchange Rate Policies finds that the ongoing crisis is having substantial negative effects on the performance of every economy assessed. Economic growth rates have plummeted and for many economies, growth has turned negative. Exchange rates have come under sharp downward pressure, especially in emerging market economies, as the crisis has intensified. Net cross-border flows for many emerging markets have slowed or reversed as investor risk appetite has shrunk and “home bias” has ostensibly increased. Meanwhile, capital inflows in the United States, especially into Treasury bonds and bills, have been robust. In virtually all economies, credit spreads for private borrowers widened sharply and, although they have come down, spreads still remain elevated in many of the economies in this Report. Plunging exports, especially in highly export-oriented economies, and falling commodity prices have lessened the severity of global imbalances. Most economies in the Report are responding to the crisis with aggressive actions to restore economic growth and achieve financial stability.”