Chart of the Week: Brexit and The City

By IMFBlog

May 29, 2017

It seems likely that Brexit will alter the relationship that UK-based financial firms have with the European Union—even though negotiations are just beginning.

For an idea of how much is at stake for the United Kingdom’s financial services industry, take a look at our Chart of the Week, drawn from the IMF’s latest Global Financial Stability Report. The chart illustrates the linkages that might be affected by the country’s withdrawal from the EU. One example: of the over-the-counter trading in foreign exchange derivatives in the United Kingdom, Germany and France, the UK share comes to 89 percent. Continue reading “Chart of the Week: Brexit and The City” »

Democratizing the Money Market

By IMFBlog

May 26, 2017

Just as technology is changing the way we live and work, it also affects the way we use and move our money. In this podcast, lawyer and bitcoin expert Patrick Murck of Harvard University tells us that financial technology, or fintech, is poised to revolutionize the way the world does business.

Continue reading “Democratizing the Money Market” »

How Flexible Exchange Rates Helped Latin America Adjust to Commodity Price Shocks

By Yan Carrière-Swallow, Nicolás Magud, and Juan Yépez

May 25, 2017

Versions in Português (Portuguese), and Español (Spanish)

(photo: Ivan Alvarado/Reuters/Newscom)

As world prices for Latin America’s key exports—oil, metal, and agricultural products—fell from their super-cycle peak in 2011 and demand from trading partners weakened, export revenues have dropped sharply. Across most of South America, export revenues have fallen by one-third, and by more than half in the case of Venezuela. The size of these shocks has been historic in some cases, ranking among the largest trade price busts faced by emerging economies around the world since 1960. Continue reading “How Flexible Exchange Rates Helped Latin America Adjust to Commodity Price Shocks” »

How an Extended Period of Low Growth Could Reshape the Financial Industry

By Gaston Gelos and Jay Surti

Versions in  عربي (Arabic), Français (French), Русский (Russian), and Español (Spanish)

What happens if advanced economies remain stuck in a long-lasting funk marked by tepid growth, low interest rates, aging populations and stagnant productivity? Japan offers an example of the impact on banks, and our analysis suggests that there could also be far-reaching consequences for insurance companies, pension funds, and asset-management firms.

Continue reading “How an Extended Period of Low Growth Could Reshape the Financial Industry” »

Why International Financial Cooperation Remains Essential

By Tobias Adrian and Maurice Obstfeld

Versions in: عربي (Arabic), 中文 (Chinese), Français (French), Русский (Russian), and Español (Spanish)

Economic growth appears to be strengthening across the large economies, but that does not mean financial-sector regulation can now be relaxed. On the contrary, it remains more necessary than ever, as does international cooperation to ensure the safety and resilience of global capital markets. That is why the Group of Twenty (G20) finance ministers and central bank governors reiterated their support for continuing financial-sector reform at their meeting in Baden-Baden last week. Continue reading “Why International Financial Cooperation Remains Essential” »

Chart of the Week: Access to Banking Services

By iMFdirect

Version in: Français (French), and Español (Spanish)

Did you know that while many people in advanced economies have multiple bank accounts, there are barely two bank accounts for every ten people in low-income economies? Access to financial services is essential to spread the fruits of economic growth to all, not just to the fortunate few.  Continue reading “Chart of the Week: Access to Banking Services” »

Strengthening Canada’s Economic Toolkit: Improving the Inflation Targeting Framework

By Maurice Obstfeld, Douglas Laxton, Yulia Ustyugova, and Hou Wang

For the past 25 years, Canada’s monetary policy framework has been working well. Headline inflation averaged 1.9 percent, 1994–2015, and long-term inflation expectations have been very well anchored to the 2 percent target (Chart 1).

Continue reading “Strengthening Canada’s Economic Toolkit: Improving the Inflation Targeting Framework” »

Sub-Saharan Africa Growth Lowest in 20 Years

by iMFdirect

The IMF's latest regional economic outlook for Sub-Saharan Africa shows growth at its lowest level in more than 20 years. In this podcast, the African Department’s new Director, Abebe Aemro Selassie, says it’s a mixed story of struggling oil-exporters and strong performers.

Continue reading “Sub-Saharan Africa Growth Lowest in 20 Years” »

A Tale of Two Tellers

Jeff Hayden

by Jeff Hayden

My mother eases her car into the drive-through lane at our local bank, signs the back of her check, and places it in a metal canister. WHOOSH—the cylinder flies through a pneumatic tube to the teller inside the building.

In a few minutes, the teller squawks her thanks from the intercom speaker nearby. Another WHOOSH, and the canister returns. Inside we find a deposit receipt and a lollipop. Welcome to high-efficiency consumer banking, circa 1973.

Summer 2016. In our kitchen, I watch my oldest son rip open his paycheck and whip out his iPhone. TAP. SWIPE. CLICK. The deposit is made in an instant, thanks to an app that plugs him into an electronic banking network.

Continue reading “A Tale of Two Tellers” »

Back to School Blogs

By iMFdirect

It’s been a busy summer, and you might not have had a chance to read everything as it came across your screen. So as your holidays wind down and you head to work, the editors at iMFdirect have put together some key blogs on hot topics to help you get back up to speed by September.

Continue reading “Back to School Blogs” »

Load More Posts