What We Have Seen and Learned 20 Years After the Asian Financial Crisis

By Mitsuhiro Furusawa

July 13, 2017

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

A trader in Seoul, South Korea: Asia is the largest contributor to global growth (photo: Ryu Seung-il/Polaris/Newscom)

Asia today is the fastest-growing region in the world, and the largest contributor to global growth. It has six members of the Group of Twenty advanced and emerging economies, and its economic and social achievements are well recognized.

But 20 years ago, July 1997 marked the beginning of the Asian Financial Crisis, when a combination of economic, financial and corporate problems triggered a sharp loss of confidence and capital outflows from the region’s emerging market economies. The crisis began in Thailand on July 2, when the baht’s peg to the dollar was dropped, and eventually spread to Korea, Indonesia and other countries. Continue reading “What We Have Seen and Learned 20 Years After the Asian Financial Crisis” »

Fintech: Capturing the Benefits, Avoiding the Risks

By Christine Lagarde

June 20, 2017

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

A signboard at a store in Guangzhou, China, lists various forms of mobile payment (photo: Imagine China/Newscom)

When you send an email, it takes one click of the mouse to deliver a message next door or across the planet. Gone are the days of special airmail stationery and colorful stamps to send letters abroad.

International payments are different. Destination still matters. You might use cash to pay for a cup of tea at a local shop, but not to order tea leaves from distant Sri Lanka. Depending on the carrier, the tea leaves might arrive before the seller can access the payment. Continue reading “Fintech: Capturing the Benefits, Avoiding the Risks” »

Protecting Education and Health Spending in Low-Income Countries

By Christine Lagarde

June 6, 2017

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

Senior class in Nairobi, Kenya. In many countries with IMF-supported programs public spending on education grew significantly faster than the economy of the country (photo: Xinhua/Sipa USA/Newscom)

IMF-supported programs are designed to help economies get back on their feet, but what about their impact on social spending?

Our latest research shows that health and education spending have typically been protected in low-income country programs. In fact, an analysis of more than 25 years of data (1988–2014) suggests that public health spending, as a share of GDP, has on average remained unchanged, while public education spending has increased by 0.32 percentage points.

Continue reading “Protecting Education and Health Spending in Low-Income Countries” »

Chart of the Week: Why Energy Prices Matter

By IMFBlog

June 5, 2017

Versions in   عربي (Arabic),  中文 (Chinese), Español (Spanish)

(photo: Imagine China/Newscom)

Wind turbines and solar panels generate electricity at power station, Jiangsu, China. Getting energy prices right will help reduce environmental costs and save lives (photo: Imagine China/Newscom)

World Environment Day is an occasion to consider why it’s so important to get energy prices right. The IMF has long argued that energy prices that reflect environmental costs can help governments achieve their goals not only for improving public health but also for inclusive growth and sound public finances.  

A number of countries such as Egypt, Indonesia, Mexico, and Saudi Arabia have recently taken important steps to increase energy prices towards market levels. Some others, such as India and China have made important strides in cost-effective renewable energy sources—and reduced their reliance on fossil fuels. Still, undercharging for fossil fuel energy remains pervasive and substantial and can cause severe health effects from pollution, particularly in densely populated countries. Continue reading “Chart of the Week: Why Energy Prices Matter” »

The SDR: Giving An Old Idea New Life

By IMFBlog

June 2, 2017

The IMF's Special Drawing Right, or SDR, was created more than 50 years ago and used only by IMF member countries to supplement their official reserves. The SDR’s value is based on a basket of five major currencies—the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound. In this podcast, Mohamed El-Erian, Chief Economic Advisor at the financial services firm Allianz, and a former deputy director at the IMF, says an expanded use of the SDR in global markets could help to strengthen the world economy. Continue reading “The SDR: Giving An Old Idea New Life” »

By | June 2nd, 2017|Financial markets, financial policy, IMF, technology, trade|

Speed Limits for Financial Markets? Not So Fast

By IMFBlog

June 1, 2017

Traders on the floor of the New York Stock Exchange (photo: Andrew Kelly/Reuters/Newscom)

On the afternoon of May 6, 2010, a financial tsunami hit Wall Street. Stunned traders watched as graphs on their computer screens traced the vertiginous 998-point plunge in the Dow Jones Industrial Average, which erased $1 trillion in market value in 36 minutes.

There was little in the way of fundamental news to drive such a dramatic decline, and stocks bounced back later that day. The event, quickly dubbed the “flash crash,” focused attention on the role of high-frequency trading and algorithms in amplifying market volatility.

Continue reading “Speed Limits for Financial Markets? Not So Fast” »

Tomorrow’s Workplace

By Camilla Lund Andersen

May 31, 2017

It seems fitting that we are launching our redesigned magazine with a cover dedicated to millennials and the future of work. But while Finance & Development has mainly changed its appearance, not its content, young adults may have to make more fundamental adjustments to keep pace with the requirements of tomorrow’s workplace. Millennials face myriad challenges as they seek to carve out a prosperous future for themselves.

Continue reading “Tomorrow’s Workplace” »

By | May 31st, 2017|education, Employment, Gender issues, IMF, income, labor force, U.S., unemployment, youth|

Democratizing the Money Market

By IMFBlog

May 26, 2017

Just as technology is changing the way we live and work, it also affects the way we use and move our money. In this podcast, lawyer and bitcoin expert Patrick Murck of Harvard University tells us that financial technology, or fintech, is poised to revolutionize the way the world does business.

Continue reading “Democratizing the Money Market” »

How Trade with China Boosts Productivity

By JaeBin Ahn and Romain Duval

May 24, 2017

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

Container port, Qingdao city, China. Trade with China has helped improve living standards in advanced economies through higher productivity (photo: Imagine China/Newscom)

Advocates of protectionist policies in advanced economies blame job losses on growing trade with China, and influential researchers have provided some empirical backing for their claims. Yet the benefits of trade with China are often overlooked. Among them is faster growth in productivity—the key driver of improved living standards. This suggests that rather than erecting new barriers to trade, advanced economies should continue to open up—while doing much more to help those who have lost their jobs to overseas competition. Continue reading “How Trade with China Boosts Productivity” »

Chart of the Week: Central and Eastern Europe Close the Gap

By IMFBlog

May 22, 2017

Version in Русский (Russian)

Most of the countries of Central, Eastern, and Southeastern Europe will see their economies humming away at a strong growth rate in 2017. A measure of their success at fully utilizing their economic machine is the output gapthe difference between what the economy is currently producing, and what it can produce when it is at full capacity.

Our Chart of the Week from a recently published report on the Central, Eastern, and Southeastern European region shows how close these economies come to performing at full potential. Continue reading “Chart of the Week: Central and Eastern Europe Close the Gap” »

By | May 22nd, 2017|Economic research, Europe, growth, IMF, inflation, Investment, jobs, labor markets, trade, wages|
Load More Posts