Game-Changers and Whistle-Blowers: Taxing Wealth

By James Brumby and Michael Keen

February 13, 2018

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

New Delhi, India: there are now very few effective explicit wealth taxes in either developing or advanced economies (photo: Jens Kalaene/Corbis).

High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, is distributed even more unequally than income, as in the picture below. Continue reading “Game-Changers and Whistle-Blowers: Taxing Wealth” »

Chart of the Week: Crime, Joblessness, and Youth in the Caribbean

By IMFBlog

February 12, 2018

Weak growth in the Caribbean reduces economic opportunities for young people, increasing their vulnerability to illegal activities and crime (photo: IMF)

Youth unemployment in the Caribbean—among the highest in the world—and crime are key bottlenecks to growth in the region.

In our Chart of the Week, we show that the 2008 global financial crisis had an especially strong effect on the unemployment rate for those between the ages of 15 and 24, which jumped on average by 5 percentage points between 2007 and 2013—from 21 percent to 26 percent. In some countries (for example, the Bahamas, Barbados, and Jamaica), youth unemployment rates are nearly three times that of those aged 30 and over. Continue reading “Chart of the Week: Crime, Joblessness, and Youth in the Caribbean” »

The Buzz of Populism and Its Pull on the Economy

By IMFBlog

February 9, 2018

(photo: Berkeley Review)

If you believe the economy can explain the rise of populism, political scientist Cristóbal Rovira Kaltwasser says it’s a bit more complicated than that.

“If you think about populist radical right parties in Western Europe, the party that gets the most votes is in Switzerland. And the economy in Switzerland is running perfectly!”

Populism has become a bit of a buzz word of late, and it was the subject of a seminar at the 2018 American Economic Association’s Annual Meeting. The IMF’s Antonio Spilimbergo organized the panel, which included Kaltwasser and economic stalwarts Dani Rodrik and Raghuram Rajan. Continue reading “The Buzz of Populism and Its Pull on the Economy” »

Chart of the Week: Inequality, Your Health, and Fiscal Policy

By Mercedes García-EscribanoBaoping Shang, and Emmanouil (Manos) Kitsios

February 5, 2018 

 Catania Sicily, Italy.  Men with a lower level of education live shorter lives, on average, than their better educated fellow citizens (photo: Jann Huizenga/Getty Images/IStock).

The gap in life expectancy between rich and poor people is a worldwide phenomenon, and has grown dramatically in recent years in some countries. 

In our Chart of the Week, we show how this longevity gap, which reflects inequality in access to health care and its impact on peoples’ overall health, varies across countries. Men with a lower level of education live shorter lives, on average, than their better educated fellow citizens: this gap ranges from four years in Italy, to 14 years in Hungary, according to the October 2017 Fiscal Monitor. Continue reading “Chart of the Week: Inequality, Your Health, and Fiscal Policy” »

A Dream Deferred: Inequality and Poverty Across Generations in Europe

By Christine Lagarde

January 24, 2018

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

A young apprentice learns a trade in Palmela, Portugal: the right policies can help reduce inequality and poverty across generations in Europe (photo: Tim Brakemeier/DPA/Newscom).

The poet Langston Hughes once asked, “What happens to a dream deferred?” It is a relevant question to millions around the world today, especially young people, because of inequality and poverty.

This week IMF staff are launching new, European Union-focused research highlighting the impact of unemployment and the long-term consequences of inadequate social protection on the young. The study also explores ideas that can help fix the problem and reduce inequality and poverty for the next generation. Continue reading “A Dream Deferred: Inequality and Poverty Across Generations in Europe” »

5 Things You Need to Know About Inequality

By IMFBlog

January 23, 2018

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

A man with donations from a food bank in Los Angeles, California: inequality within countries is on the rise, including in advanced economies like the United States (photo: Lucy Nicholson/Newscom).

Tackling inequality is not only a moral imperative. It is critical for sustaining growth.

Global income inequality has declined in recent years, with the Gini index—a statistical measure of income distribution with a value of zero indicating perfect equality—dropping from 68 in 1988 to 62 in 2013, reflecting relatively strong growth in many emerging and developing economies, particularly in China and India. However, inequality has increased within many countries, including in many advanced economies. Continue reading “5 Things You Need to Know About Inequality” »

The Art in Artificial Intelligence: Make the Robots Serve the Public Good

By Brian McNeill

January 11, 2018

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

Artificial intelligence can create a roadmap for future opportunities if utilized appropriately (photo: monsitj/iStock by Getty Images).

Over the past few years, artificial intelligence has rapidly matured as a viable field of technology. Machines that learn from experience, adjust to new inputs, and perform tasks once uniquely the domain of humans, have entered our daily lives in ways seen and unseen. Given the current breakneck pace of change and innovation, the question for governments and policymakers is how to harness the benefits of artificial intelligence, and not be trampled by the robot takeover of our nightmares. The answer is simple: make them work for us. Continue reading “The Art in Artificial Intelligence: Make the Robots Serve the Public Good” »

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” »

Chart of the Week: The Walking Debt: Resolving China’s Zombies

By IMFBlog

December 11, 2017

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

IMF research shows that resolving China’s zombie firms can boost productivity and long-term growth prospects (photo: DNY59/iStock by Getty Images).

China’s “zombies” are non-viable firms that are adding to the country’s rising corporate debt problem, and are bad business. Zombie firms are highly indebted and incur persistent losses, but continue to operate with the support of local governments or soft loans by banks—adding very little value to economic prospects. China has already made a lot of progress in resolving these firms, and should continue its efforts to send the zombies packing. Continue reading “Chart of the Week: The Walking Debt: Resolving China’s Zombies” »

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