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.

Continuing the Momentum—Asia’s Updated Economic Outlook

Asia’s leadership of the global recovery is continuing unabated. The IMF now expects GDP in Asia to grow by about 7¾ percent in 2010 (up about ½ a percentage point from what was envisaged in April), before easing to about 6¾ percent in 2011. And, even though the downside risks to growth have intensified, the region is well equipped to handle them.

Global Economy: Continuing Recovery But Clouds on the Horizon

The International Monetary Fund remains cautiously optimistic about the pace of recovery, but there are clear dangers and policy challenges ahead. IMF chief economist Olivier Blanchard says how Europe deals with fiscal and financial problems, how advanced countries proceed with fiscal consolidation, and how emerging countries rebalance their economies, will determine the outcome.

Ten Commandments for Fiscal Adjustment in Advanced Economies

We offer ten commandments so that fiscal strategies can be designed to make them consistent with both short-term and long-term growth requirements. Put simply, what advanced countries need is clarity of intent, an appropriate calibration of fiscal targets, and adequate structural reforms. With a little help from monetary policy, and from their (emerging market) friends.

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