Communications Can Help to Get Financial Stability Off the Ground

By Olga Stankova

February 22, 2018 

Versions in 中文 (Chinese), Español (Spanish), Português (Portuguese), Русский (Russian)

Policy and communications—two wings to fly to success (photo: iStock by Getty Images).

When the capacity to communicate effectively on financial stability policies is not there, it is like trying to fly a plane with one wing missing. It takes more than sound policy making. Communications is an essential part of the job.

Following the global financial crisis, many countries redoubled their efforts to build stronger financial stability frameworks. Central banks and supervisory agencies have enhanced their capacity to identify and monitor systemic risks in the financial system and have developed new policies to mitigate them. Continue reading “Communications Can Help to Get Financial Stability Off the Ground” »

The Euro Area Needs a Fiscal Union

By Helge Berger, Giovanni Dell’Ariccia, and Maurice Obstfeld

February 21, 2018

Version in Français (French) 

Without more tangible elements of a fiscal union, the euro area will remain fundamentally vulnerable to shocks. (photo: iStock by GettyImages) .

The euro area is experiencing a robust recovery, but the architecture supporting Europe’s currency union remains incomplete and leaves the region vulnerable to future financial crises.

While substantial progress has been made to address some architectural issues—conditional lending facilities and key elements of a banking union—we argue in our recent paper that the euro area needs to build elements of a common fiscal policy, including more fiscal risk sharing, to preserve financial and economic integration and stability. Without some degree of fiscal union, the region will continue to face existential risks that policymakers should not ignore. While this is not a new topic, the current favorable economic climate might be the moment to advance the discussion—and the chance to strengthen the euro area. Continue reading “The Euro Area Needs a Fiscal Union” »

Countries in the IMF Financial Spotlight in 2018

By IMF Blog

January 31, 2018

Versions in عربي (Arabic),  中文 (Chinese), Français (French), 日本語 (Japanese), Español (Spanish), Русский (Russian)

Financial sector assessments are showing that countries and financial systems are adapting better methods to monitor financial vulnerabilities (photo: Ingram Publishing/Newscom).

The IMF in 2018 will complete ten assessments of countries’ financial systems, to identify risks and propose policies to strengthen their financial stability. Three of this year’s reviews will be for countries with Systemically Important Financial Systems : Belgium, Brazil and Poland. In addition, IMF experts will assess the euro area’s financial stability. Other financial stability assessments will cover Armenia, Jamaica, Namibia, Peru, Romania, and Tanzania.

Continue reading “Countries in the IMF Financial Spotlight in 2018” »

South Africa’s Lesetja Kganyago: Fintech Is a Central Banker’s Friend

By IMFBlog

January 26, 2018 

Lesetja Kganyago, South Africa’s Central Bank Governor and Chairman of the International Monetary and Financial Committee (photo: IMF staff).

While central bankers are often seen as somewhat traditionalist, South Africa’s Reserve Bank Governor Lesetja Kganyago is breaking that mold. Kganyago sees how new technology—or fintech—is transforming the financial sector, and in this podcast, he says there is no turning back. Continue reading “South Africa’s Lesetja Kganyago: Fintech Is a Central Banker’s Friend” »

The Current Economic Sweet Spot Is Not the “New Normal”

By Maurice Obstfeld

January 22, 2018

Versions in عربي (Arabic),  中文 (Chinese),  Español (Spanish), Français (French), 日本語 (Japanese),  Русский (Russian)

Global growth continues to pick up and is broad based. But no matter how tempting it is to sit back and enjoy the sunshine, policy can and should move to strengthen the recovery (photo: Mumbai, India, Ingram Publishing/Newscom).

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”” »

Weak Productivity: The Role of Financial Factors and Policies

By Romain Duval, Giuseppe Nicoletti, and Fabrizio Zampolli

January 8, 2018

Auto worker in Mexico: weak productivity has been a problem even before the global financial crisis (photo: Henry Romero/Newscom).

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” »

Top Ten Charts of the Week: 2017

By IMFBlog

January 3, 2017

The top 10 charts of the week of 2017 help illuminate the uncharted waters ahead for the global economy  (photo: Kotka, Finland-Newspix24/SipaUS/Newscom).

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” »

Top Ten Blogs of 2017

By IMFBlog

December 28, 2017

Read the top ten blogs of 2017 (photo: Times Square- New York-Pacific Press/SipaUSA/Newscom)

We have all had quite the year. Our readers' interests in 2017 focused on topics that affect how people live their lives: why wages are low, rising income and wealth inequality, household debt, climate change, and the scourge of corruption, to name a few.

As we wrap up the highs and lows of 2017 and get ready for whatever 2018 has in store, here is the list of the top ten blogs of the year based on readership. From all the elves editors at IMFBlog, we wish you a year of peace and interesting reads.

Continue reading “Top Ten Blogs of 2017” »

Staying Ahead of the Next Crisis: Improving Collaboration with Regional Financing Arrangements

By Petya Koeva Brooks, Pragyan Deb, and Nathan Porter

December 21, 2017

Version in 中文 (Chinese), 日本語 (Japanese)

Festival of lights in Chiang Mai, Thailand: Regional financing arrangements, such as the Chiang Mai Initiative, are playing a growing role in crisis prevention (photo: Tejas Tamobhid PATNAIK/newzulu/Newscom)

A decade ago, regional financing arrangements played a limited role in the global financial safety net. However, the global financial crisis has drastically changed the landscape. Governments have created new arrangements—such as the European Stability Mechanism and the Chiang Mai Initiative Multilateralization—and the resources in the global financial safety net tripled between 2007 and 2016. Because of this evolution, and since the time to repair the roof is when the sun is shining, effective and efficient collaboration between the IMF and regional arrangements has become critical to preventing and mitigating crises in many parts of the world. Continue reading “Staying Ahead of the Next Crisis: Improving Collaboration with Regional Financing Arrangements” »

Strength in Numbers: A Safety Net to Prevent Crises in the Global Economy

By IMFBlog

December 19, 2017

Version in عربي (Arabic);  中文 (Chinese), Español (Spanish),  Français (French), 日本語 (Japanese),  Русский (Russian)

Walking on a safety net: countries need insurance in bad economic and financial times (photo: Vivek Prakash/Newscom).

If you are lucky, when the going gets tough, you have a group of people you can rely on to help you through a crisis. Countries are no different—a safety net to help them in bad economic and financial times can make the difference in peoples’ lives.   Continue reading “Strength in Numbers: A Safety Net to Prevent Crises in the Global Economy” »

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