Chart of the Week: Greenery and Prosperity
By João Tovar Jalles and Prakash Loungani
May 21, 2018
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Brandenburg, Germany: in three advanced economies—Germany, the United Kingdom, and France—emissions have fallen despite the increase in incomes (photo: Caro / Kaiser/Newscom).
Economic growth has traditionally moved in tandem with pollution. But can countries break this link and manage to grow while lowering pollution?
Continue reading “Chart of the Week: Greenery and Prosperity” »
Mapping Income Polarization in the United States
By Ali Alichi and Rodrigo Mariscal
May 15, 2018
Versions in Español, Português
Investment in education an important countervailing force in addressing income inequality (photo: Istock by Getty Images).
When it comes to income inequality among American households, outcomes have varied widely across the 50 U.S. states. The impact of international competition gets a lot of the blame, along with automation, in states that have fared the worst. Continue reading “Mapping Income Polarization in the United States” »
Trust and the Future of Multilateralism
By David Lipton
May 10, 2018
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Where trust exists and is reciprocated—where there is “confidence” in policies, institutions and systems—economies will achieve more (photo: iStock by Getty Images).
We live in an era of doubts and questions about the global order. We have seen an erosion of trust in bedrock institutions—political parties, national governments, regional authorities, and among international trade and investment partners. Continue reading “Trust and the Future of Multilateralism” »
Malta’s Good Bet
By IMFBlog
May 7, 2018
Marsaxlokk Harbor, Malta. Not only tourist paradise: the country’s economy makes profits on the betting and gambling industry (photo: iStockPhoto/Andrey Danilovich).
Known mostly for its azure seas and spectacular old towns, Malta has also become a hub for gambling and betting companies: nowhere else in the European Union does this sector account for such a large part of the economy as on the island south of Sicily in the Mediterranean Sea. While the gambling and betting boom contributes to the country’s trade balance and job creation, it also draws attention to a skills shortage and infrastructure gaps the sector is grappling with, a recent IMF paper shows. Continue reading “Malta’s Good Bet” »
Volatility Strikes Back
By Sergei Antoshin, Fabio Cortes, Will Kerry and Thomas Piontek
May 3, 2018
Investors who bet on continued low volatility suffered steep losses (photo: Richard B. Levine/Newscom).
The bouts of volatility in early February and late March that spooked investors were confined to equity markets. Nevertheless, they illustrate the potential for sudden market moves to expose fragilities in the financial system more broadly.
With central banks in advanced economies set to normalize their monetary policies just as trade and geopolitical tensions flare up, economic and policy uncertainty may rise and financial conditions may tighten abruptly. Continue reading “Volatility Strikes Back” »
Technology and the Future of Work
By Adrian Peralta, and Agustin Roitman
May 1, 2018
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Technology impacts how we work (photo: BSIP/Newscom).
Many feel anxious about the impact of new technology on their jobs. This is not new. In fact, it dates back at least to the Luddites movement at the outset of the Industrial Revolution. And it resurfaced during the Great Depression and again in the 1960s, following a period of high productivity growth, and in the 1980s at the outset of the IT revolution.
How can governments help? By investing in peoples’ skills. Continue reading “Technology and the Future of Work” »
Mounting Debt Threatens Sustainable Development Goals
By Chris Lane and Elliott Harris
April 27, 2018
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A market in Port-au-Prince, Haiti: some developing countries are falling behind when it comes to incomes (photo: Dumont Bildarchiv/Newscom).
In 2015, 193 countries adopted the 17 Sustainable Development Goals (SDGs) as an overarching policy roadmap through 2030. These goals are predicated on the idea that for a sustainable future, economic growth must go hand-in-hand with social inclusion and protection of the environment.
Our respective institutions, the United Nations Department of Economic and Social Affairs (UNDESA) and the International Monetary Fund (IMF), fully support these goals. From the UN perspective, they represent a down payment on a more peaceful, prosperous, and cooperative world, especially in increasingly perilous times. For the IMF, they help underpin economic stability and sustainable and inclusive economic growth. Continue reading “Mounting Debt Threatens Sustainable Development Goals” »
Shining a Bright Light into the Dark Corners of Weak Governance and Corruption
April 22, 2018
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Anti-corruption strategies require broader regulatory and institutional reforms (photo: Kritchanut/iStock).
The IMF Executive Board has just endorsed a new framework for stepping up engagement on governance and corruption in our member countries. Let me talk about why this is important and what it means for our work.
Continue reading “Shining a Bright Light into the Dark Corners of Weak Governance and Corruption” »
Bringing Down High Debt
By Vitor Gaspar and Laura Jaramillo
April 18, 2018
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High debt makes governments’ financing vulnerable to sudden changes in market sentiment (photo: NYSE-LUCAS JACKSON-REUTERS Newscom).
Global debt hit a new record high of $164 trillion in 2016, the equivalent of 225 percent of global GDP. Both private and public debt have surged over the past decade. High debt makes government’s financing vulnerable to sudden changes in market sentiment. It also limits a government’s ability to provide support to the economy in the event of a downturn or a financial crisis.
Countries should use the window of opportunity afforded by the economic upswing to strengthen the state of their fiscal affairs. The April 2018 Fiscal Monitor explores how countries can reduce government deficits and debt in a growth-friendly way.
A Bumpy Road Ahead for the Global Financial System
April 18, 2018
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An unexpected increase in inflation could prompt the Federal Reserve and other central banks to raise interest rates faster than currently anticipated, roiling financial markets (photo: Tom Williams/CQ Roll Call/Newscom).
The current economic environment remains favorable, but short-term risks to global financial stability have increased in the past six months, as a result of a spike in stock-market volatility in February and continuing investor concerns about rising geopolitical and trade tensions. Looking ahead, the odds of a downturn remain elevated, and there’s even a small chance of a global economic contraction over the medium-term. Continue reading “A Bumpy Road Ahead for the Global Financial System” »
