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.
The outlook for further interest-rate increases by the US Federal Reserve revives interest in a compelling question: In an increasingly integrated global financial system, how much control do countries outside of the US retain over their economic policies?Continue reading “With Global Financial Markets, How Much Control Do Countries Have Over Economic Policies?” »
Output per worker and total factor productivity have slowed sharply over the past decade in most advanced economies and many emerging and developing countries.
Even before the global financial crisis, productivity growth showed signs of slowing in many advanced economies. But in the aftermath of the crisis, there was a further, abrupt deceleration. Continue reading “Chart of the Week: Slowing Productivity: Why It Matters and What To Do” »
From smartphones to cloud computing, technology is rapidly changing virtually every facet of society, including communications, business and government. The financial world is no exception.
As a result, the financial world stands at a critical juncture. Yes, the widespread adoption of new technologies, such as blockchain-based systems, offers many potential benefits. But it also gives rise to new risks, including risks to financial stability. That causes challenges for financial regulators, a subject I addressed at the 2017 World Government Summit in Dubai.
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An important attribute of China’s remarkable record of economic growth has been the creation of an astonishing network of “hard” infrastructure, like roads, power stations, and communication networks. Now, China needs to move toward a new stage of reforms designed to help rebalance its economy. The stakes for global prosperity are high—China is the second largest economy and contributes one-third of the world’s growth. Continue reading “‘Soft’ Infrastructure Is Crucial for Stable and Balanced Growth in China” »