January 23, 2018
Tackling inequality is not only a moral imperative. It is critical for sustaining growth.
Global income inequality has declined in recent years, with the Gini index—a statistical measure of income distribution with a value of zero indicating perfect equality—dropping from 68 in 1988 to 62 in 2013, reflecting relatively strong growth in many emerging and developing economies, particularly in China and India. However, inequality has increased within many countries, including in many advanced economies. Continue reading “5 Things You Need to Know About Inequality” »
January 22, 2017
As the year 2018 begins, the world economy is gathering speed. The new World Economic Outlook Update revises our forecast for the world economy’s growth in both 2018 and 2019 to 3.9 percent. For both years, that is 0.2 percentage points higher than last October’s forecast, and 0.2 percentage points higher than our current estimate of last year’s global growth. Continue reading “The Current Economic Sweet Spot Is Not the “New Normal”” »
January 19, 2018
This has never happened before. Never. Three years of stagnating carbon dioxide emissions coupled with relatively healthy global economic growth. In this podcast , International Energy Agency Chief Economist Laszlo Varro talks about leaving fossil fuels in the past. Continue reading “Slowly but Surely, a Farewell to Fossil Fuels” »
By Jihad Azour
January 18, 2018
Rising social tensions and protests in several countries across the Middle East and North Africa are a clear indication that the aspirations of the people of the region—for opportunity, prosperity and equity—remain unfulfilled. Their frustration is understandable, and precisely because of that, it would be a mistake if the economic reform process currently underway were to be thrown into reverse. Continue reading “Economic Growth and Fairness in the Middle East and North Africa” »
January 17, 2018
The economic outlook for Germany is bright. Optimism among investors abounds, and unemployment is at a record low. Policymakers now have a unique opportunity to address the challenges facing the German economy. These are varied but include boosting wages, investing in infrastructure, and reducing the large trade surplus. As the largest economy of the euro area, Germany also has a stake in fostering reforms in the monetary union. Successfully rising to these challenges is critical for Germany and for the euro area as a whole.
January 12, 2018
What’s the best solution to a lack of infrastructure? Find a solution that doesn’t require infrastructure. That’s what Zipline has done in Rwanda—a start-up that deploys drones to make emergency medical deliveries to remote hospitals and clinics.
“Obviously in instances where Zipline can make a delivery to a place that wouldn't otherwise be reachable by roads, that's a good example of leapfrogging over the absence of infrastructure,” Zipline CEO Keller Rinaudo said. Continue reading “No Roads? No Problem: The Leapfrogging Drones of Rwanda” »
January 11, 2018
Over the past few years, artificial intelligence has rapidly matured as a viable field of technology. Machines that learn from experience, adjust to new inputs, and perform tasks once uniquely the domain of humans, have entered our daily lives in ways seen and unseen. Given the current breakneck pace of change and innovation, the question for governments and policymakers is how to harness the benefits of artificial intelligence, and not be trampled by the robot takeover of our nightmares. The answer is simple: make them work for us. Continue reading “The Art in Artificial Intelligence: Make the Robots Serve the Public Good” »
January 8, 2018
Almost ten years after the onset of the global financial crisis productivity growth remains anaemic in advanced economies despite very easy monetary conditions, casting doubts on the sustainability of the cyclical recovery. The productivity slowdown started well before the crisis, which then amplified the problem. To what extent can this slowdown be ascribed to policies and financial factors, including loose monetary policy prior to 2008, corporate and bank balance sheet vulnerabilities, and the exceptional monetary and financial policy responses to the crisis? Continue reading “Weak Productivity: The Role of Financial Factors and Policies” »
January 5, 2018
What does a shoe shiner in India have in common with central bankers and finance ministers? They both can appreciate the digital-payment boom. It’s sweeping the world but has accelerated in India, where last November the government demonetized—declaring that 86 percent of the country’s currency in circulation would cease to be legal tender. Continue reading “Gamechanger: The Digital Payment Boom in India” »
January 3, 2017
In the Spring of 2017, we began our Chart of the Week feature on the blog: snapshots in time and over time of how economies work, to help illuminate the uncharted waters ahead for the global economy.
Here are the top ten Charts of the Week of 2017, based on your readership. Continue reading “Top Ten Charts of the Week: 2017” »