Government | IMF Blog

Shining a Bright Light into the Dark Corners of Weak Governance and Corruption

April 22, 2018

Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish), Français (French), baˈhasa indoneˈsia (Indonesian), 日本語 (Japanese), Português (Portuguese), Русский (Russian)

Anti-corruption strategies require broader regulatory and institutional reforms (Kritchanut/iStock).

The IMF Executive Board has just endorsed a new framework for stepping up engagement on governance and corruption in our member countries. Let me talk about why this is important and what it means for our work.

Continue reading “Shining a Bright Light into the Dark Corners of Weak Governance and Corruption” »

By IMFBlog| April 22nd, 2018|Advanced Economies, corruption, Financial regulation, Global Governance, Government, inclusive growth, Inequality, Investment, Politics, Spring Meetings, structural reforms, taxation|

Bringing Down High Debt

By Vitor Gaspar and Laura Jaramillo

April 18, 2018

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

High debt makes governments’ financing vulnerable to sudden changes in market sentiment (photo: NYSE-LUCAS JACKSON-REUTERS Newscom).

Global debt hit a new record high of $164 trillion in 2016, the equivalent of 225 percent of global GDP. Both private and public debt have surged over the past decade. High debt makes government’s financing vulnerable to sudden changes in market sentiment. It also limits a government’s ability to provide support to the economy in the event of a downturn or a financial crisis.

Countries should use the window of opportunity afforded by the economic upswing to strengthen the state of their fiscal affairs. The April 2018 Fiscal Monitor explores how countries can reduce government deficits and debt in a growth-friendly way.

Continue reading “Bringing Down High Debt” »

By IMFBlog| April 18th, 2018|Advanced Economies, banking, China, credit, developing countries, Economic Crisis, Economic outlook, Economic research, Emerging Markets, Europe, Fiscal, Fiscal discipline, Fiscal policy, Fiscal Stimulus, Government, growth, income, Low-income countries, Politics, Public debt, recession, Reform, taxation, U.S., Uncategorized|

Fiscal Rules: Make them Easy to Love and Hard to Cheat

By Xavier Debrun, Luc Eyraud, Andrew Hodge, Victor Lledo, Catherine Pattillo, Abdelhak Senhadji

April 13, 2018

Versions in Español (Spanish), Français (French), Português (Portuguese)

The national debt clock in New York City: a fiscal rule, like the debt ceiling, should not be set too low or too high. (photo: Frances M. Roberts/Newscom)

Rules to contain lavish government deficits are most effective if countries design them to be simple, flexible, and enforceable in the face of changing economic circumstances.

In new analysis, we look at fiscal rules in over 90 countries and, based on their experiences, find that the rules put in the place over the last three decades often were too complex, overly rigid, and difficult to enforce. Continue reading “Fiscal Rules: Make them Easy to Love and Hard to Cheat” »

By IMFBlog| April 13th, 2018|Advanced Economies, aging, Economic outlook, Economic research, Emerging Markets, Employment, Environment, Europe, Finance, Financing, Fiscal, Fiscal discipline, Fiscal policy, Fiscal Stimulus, Globalization, Government, growth, IMF, interest rates, International Monetary Fund, Investment, Latin America, Low-income countries, Multilateral Cooperation, Politics, Public debt, South America, Spring Meetings, taxation, technology, U.S., Uncategorized|

The Digital Gamble: New Technology Transforms Fiscal Policy

By Vitor Gaspar and Geneviève Verdier

April 12, 2018

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

Traffic in Singapore: the city uses digital technology for road pricing to manage road congestion congestion (photo: Kua Chee Siong/ SPH/Newscom)..

In Rwanda, digitally-monitored drones deliver blood supplies to hospitals. In Estonia, it takes five minutes to file taxes and 99 percent of government services are available online. Singapore was the first city to implement electronic road pricing to manage congestion. The world is becoming digital, and reliable, timely, and accurate information is available at the push of a button. Governments are following suit, using digital tools for tax and expenditure policy, public financial management, and public service delivery. Continue reading “The Digital Gamble: New Technology Transforms Fiscal Policy” »

By IMFBlog| April 12th, 2018|Advanced Economies, Africa, Asia, capital markets, China, developing countries, Economic outlook, Economic research, Emerging Markets, Europe, Finance, Financial markets, financial policy, Financial regulation, Financing, Fiscal, Fiscal discipline, Fiscal policy, Fiscal Stimulus, Globalization, Government, IMF, India, infrastructure, International Monetary Fund, Investment, Japan, LICs, Low-income countries, monetary policy, Politics, Reform, Spring Meetings, taxation, technology, trade, U.S., Uncategorized|

Risky Business: Reading Credit Flows for Crisis Signals

By Claudio Raddatz Kiefer and Jérôme Vandenbussche

April 10, 2018

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

The odds of a severe economic downturn are higher when a growing portion of credit flows to riskier firms, according to a new IMF study (Photo: Pali 137/ iStock by Getty Images).

Supervisors who monitor the health of the financial system know that a rapid buildup of debt during an economic boom can spell trouble down the road. That is why they keep a close eye on the overall volume of credit in the economy. When companies go on a borrowing spree, supervisors and regulators may decide to put the brakes on credit growth.

Trouble is, measuring credit volume overlooks an important question: how much of that additional money flows to riskier companies – which are more likely to default in times of trouble—compared with more creditworthy firms? The IMF’s latest Global Financial Stability Report seeks to fill that gap by constructing measures of the riskiness of credit allocation, which should help policy makers spot clouds on the economic horizon. Continue reading “Risky Business: Reading Credit Flows for Crisis Signals” »

By IMFBlog| April 10th, 2018|Advanced Economies, Annual Meetings, Asia, banking, capital flows, capital markets, China, commodities, Corporate Risk, credit, currency, developing countries, Economic Crisis, Economic outlook, Economic research, Emerging Markets, Employment, Financial Crisis, Financial markets, Financial regulation, Global Governance, Government, growth, IMF, infrastructure, interest rates, International Monetary Fund, Investment, jobs, monetary policy, Public debt, Reform, U.S.|

For Home Prices in London, Check the Tokyo Listings

By Claudio Raddatz Kiefer and Jane Dokko

April, 10, 2018

Versions in عربي (Arabic); 中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese), Português (Portuguese)

Hong Kong viewed from Victoria Peak. House prices across countries and cities are increasingly moving in tandem (Photo: Fraser Hall/Robert Harding/Newscom).

If house prices are rising in Tokyo, are they also going up in London?

Increasingly, the answer is yes.

In recent decades, house prices around the world have shown a growing tendency to move in the same direction at the same time. What accounts for this phenomenon, and what are the implications for the world economy? These are questions that IMF economists explore in Chapter 3 of the latest Global Financial Stability Report. Continue reading “For Home Prices in London, Check the Tokyo Listings” »

Chart of the Week: Malaysia Needs More Women in the Workforce

By IMFBlog

April 2, 2018

Version in baˈhasa indoneˈsia (Indonesian)

Four students walk past a bank in Kuala Lumpur, Malaysia: Policies like improving the quality of education can help the country increase the number of women in the workforce (photo: John Mulligan/iStock by Getty Images).

Malaysia, a country well on its way to achieving high income status, can increase the number of women in the labor force by implementing key labor market reforms. And the country should, because our research shows that more women in the workforce benefits the economy. Continue reading “Chart of the Week: Malaysia Needs More Women in the Workforce” »

By IMFBlog| April 2nd, 2018|Asia, banking, Civil Society, developing countries, Economic outlook, Economic research, education, Emerging Markets, Employment, Environment, Finance, Fiscal, Gender issues, Government, growth, health, housing, IMF, income, International Monetary Fund, jobs, labor force, labor markets, taxation, technology, Uncategorized, wages|

Managing Debt Vulnerabilities in Low-Income and Developing Countries

By Tao Zhang

March 22, 2018

Versions in Português (Portuguese)

Congested streets in Dhaka, Bangladesh. In a third of low-income countries, including Bangladesh, government deficits finance investment in much needed infrastructure (photo: Motoya Taguchi/Jiji Press/Newscom).

Government debt in some of the world’s poorest countries is rising to risky levels, a new IMF report shows. The report looks at economic developments and prospects among the world’s low-income countries, which account for a fifth of the world’s population but only four percent of global output. Continue reading “Managing Debt Vulnerabilities in Low-Income and Developing Countries” »

The Economic Scars of Crises and Recessions

By Valerie Cerra and Sweta C. Saxena

March 21, 2018

Version in 日本語 (Japanese), Português (Portuguese)

New study finds that all types of recessions lead to permanent losses in output and welfare (photo: Peshkov/iStock by GettyImages).

Economic recessions are typically described as short-term periods of negative economic growth. According to the traditional business cycle view, output moves up and down around its long-term upward trend and after a recession, it recovers to its pre-recession trend. Our new study casts doubt on this traditional view and shows that all types of recessions—including those arising from external shocks and small domestic macroeconomic policy mistakes—lead to permanent losses in output and welfare. Continue reading “The Economic Scars of Crises and Recessions” »

By IMFBlog| March 21st, 2018|Advanced Economies, capital markets, currency, developing countries, Economic Crisis, Economic outlook, Economic research, Emerging Markets, exchange rates, Finance, Financial Crisis, Financial markets, Financial regulation, Financing, Government, IMF, income, inflation, International Monetary Fund, Investment, jobs, labor force, labor markets, Low-income countries, monetary policy, Politics, productivity, recession, U.S., Uncategorized, unemployment|

Adapting to Climate Change—Three Success Stories

By Evgenia Pugacheva and Mico Mrkaic

March 20, 2018

When governments subsidize private investment in adaptation, the economic costs of extreme weather events can be reduced (photo: Leolintang/iStock by Getty Images).

Climate change is one of the greatest threats facing our planet. Its negative effects on health, the biosphere, and labor productivity are already being felt throughout the world. Aware of the danger, communities, households, and governments have started taking measures to reduce their exposures and vulnerability to weather shocks and climate change. Our study in the World Economic Outlook shows that public investment in adaptation can partially reduce the economic costs of severe weather events. Continue reading “Adapting to Climate Change—Three Success Stories” »

By IMFBlog| March 20th, 2018|Advanced Economies, Africa, Asia, climate change, developing countries, Economic outlook, Economic research, Environment, Europe, Fiscal, Fiscal policy, Globalization, Government, growth, health, housing, IMF, International Monetary Fund, Investment, labor markets, Latin America, Low-income countries, Middle East, natural disasters, taxation, technology, Uncategorized|

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