Driving the Global Economy with the Brakes On

The world recovery, which was weak in the first place, is in danger of stalling. The epicenter of the danger is Europe, but the rest of the world is increasingly affected.

2011 In Review: Four Hard Truths

As 2011 draws to a close, the recovery in many advanced economies is at a standstill, with some investors even exploring the implications of a potential breakup of the euro zone, and the real possibility that conditions may be worse than we saw in 2008. Olivier Blanchard, the IMF's Chief Economist, draws four main lessons in his year in review.

What the Arab Spring Has Taught Us

A clear lesson is that even rapid economic growth cannot be maintained unless it is inclusive, creates jobs for the growing labor force, and is accompanied by social policies for the most vulnerable. F from the Arab Spring is that economic reforms to be sustainable, their gains must be broadly shared, not just captured by a privileged few. Widespread corruption is not just an unacceptable affront to the dignity of citizens, it also deprives them of the economic benefits. And the absence of transparent and fair rules of the game will inevitably undermine inclusive growth.

Toughing It Out: How the Baltics Defied Predictions

The three Baltic states—Estonia, Latvia and Lithuania—were among the first victims of the global financial crisis. Although adjustment is still far from complete, a recovery is now underway. It is still too early to judge the success of the Baltic strategy, but it's fair to say that the most dire predictions have not come true.

By | January 7th, 2011|Economic Crisis, Emerging Markets, Employment, Fiscal Stimulus|

2011—A Pivotal Year for Global Cooperation

John Lipsky, First Deputy Managing Director of the IMF, looks at the year ahead and says 2011 represents a pivotal time for global economic recovery and for international policy cooperation—as well as for the role of the Fund in addressing these two principal challenges.

iMFdirect–Must Reads on Global Finance and Budgets

The iMF Direct Blog has picked our list of must read posts covering the highs and lows of global finance and government budgets and spending.

Blanchard Sees Continued Two-Speed Recovery in 2011

Blanchard says the two-speed global economic recovery is likely to dominate 2011, with weak growth in advanced economies barely enough to bring down unemployment and emerging markets facing the challenges of success, including how to avoid overheating and handle strong capital inflows.

A Marriage Made in Heaven or Hell: Monetary and Financial Stability

Price stability has long been enshrined as the main objective of monetary policy, and, with that, gone are the days of high and volatile inflation. Monetary stability seems almost a given today. However, the global financial crisis revealed that, by focusing on price stability, monetary policy frameworks might not always sound the alarm when financial stability comes under threat. In his latest blog, José Viñals reflects on the monetary policy lessons that emerged from the global financial crisis and the need for a "happy marriage" between the goals of price stability and financial stability.

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