Global Financial Stability Improves; Getting the Policy Mix Right to Sustain Gains

By Tobias Adrian

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

The world’s financial system has become safer and more stable since our last assessment six months ago. Economic activity has gained momentum. The outlook has improved and hopes for reflation have risen. Monetary and financial conditions remain highly accommodative. And investor optimism over the new policies under discussion in the United States has boosted asset prices. These are some of the conclusions of the IMF’s latest Global Financial Stability Report

But it’s important for governments in the United States, Europe, China and elsewhere to follow through on investor expectations by adopting the right mix of policies. This means preventing fiscal imbalances, resisting calls for higher trade barriers, and maintaining global cooperation on regulations needed to make the financial system safer. Continue reading “Global Financial Stability Improves; Getting the Policy Mix Right to Sustain Gains” »

Global Economy Gaining Momentum—For Now

By Maurice Obstfeld

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

Momentum in the global economy has been building since the middle of last year, allowing us to reaffirm our earlier forecasts of higher global growth this year and next. We project the world economy to grow at a pace of 3.5 percent in 2017, up from 3.1 percent last year, and 3.6 percent in 2018. Acceleration will be broad based across advanced, emerging, and low-income economies, building on gains we have seen in both manufacturing and trade.

Our new projection for 2017 in the April World Economic Outlook is marginally higher than what we expected in our last update. This improvement comes primarily from good economic news for Europe and Asia, as well as our continuing expectation for higher growth this year in the United States.

Continue reading “Global Economy Gaining Momentum—For Now” »

Chart of the Week: Seeking Solutions to Growing Inequality

By IMFblog

As finance ministers and central banks gather in Washington this week for the spring meetings of the IMF and World Bank, income inequality will be among the topics of discussion.

While global economic integration has brought enormous benefits in the form of rising living standards, it has also contributed to widening inequality within some countries. In advanced economies, the incomes of the top 1 percent have grown three times faster than those of the rest of the population over the past three decades. Continue reading “Chart of the Week: Seeking Solutions to Growing Inequality” »

The Hollowing Out of Middle-Skilled Labor Share of Income

By Mai Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian

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

Imagine how a typical factory today operates in many advanced economies. There are no longer many workers lined up along assembly belts. Instead, there are only a few of them—mostly likely engineers—looking at screens of highly sophisticated equipment that does the assembly once done by humans. With technological advancement constantly driving down the cost of capital, firms are increasingly replacing workers with machines.

Continue reading “The Hollowing Out of Middle-Skilled Labor Share of Income” »

Drivers of Declining Labor Share of Income

By Mai Chi Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian

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

After being largely stable in many countries for decades, the share of national income paid to workers has been falling since the 1980s. Chapter 3 of the April 2017 World Economic Outlook finds that this trend is driven by rapid progress in technology and global integration.

Continue reading “Drivers of Declining Labor Share of Income” »

Union of Labor and Growth

By IMFBlog

John Evans is Head of the Trade Union Advisory Committee to the Organisation for Economic Cooperation and Development, which represents some 65 million organized workers worldwide. In this podcast, he says that the labor market works much like any other market, driven by supply and demand, and the latter is very dependent on how well the economy is doing.  Continue reading “Union of Labor and Growth” »

The Case for Fiscal Policy to Support Structural Reforms

By Angana Banerji, Era Dabla-Norris, Romain Duval, and Davide Furceri

Versions in 中文 (Chinese), Français (French),Deutsch (German), Русский (Russian), and Español (Spanish)

Many advanced countries need  structural reforms to make their economies more productive and raise long-term living standards.  Our new research shows that provided countries can afford it, fiscal policy, through spending or tax incentives, can help governments overcome some obstacles to the reforms, particularly in the early stages.   Continue reading “The Case for Fiscal Policy to Support Structural Reforms” »

No Victory Lap Yet: U.S. Wage Growth Elusive

stephan-danningerBy Stephan Danninger

The U.S. labor market seems to have finally healed. The unemployment rate has been below 5 percent for some time and job growth is steady. And more Americans are coming back to the labor market—in other words, labor participation is increasing. Yet, despite a bump-up in 2015, wage growth so far this year—compared to the 2000s—is still disappointingly low (see Chart 1). This is worrying because consumer spending, which makes up the majority of U.S. economic output, cannot continue at the current pace unless wages grow.  Continue reading “No Victory Lap Yet: U.S. Wage Growth Elusive” »

By | September 20th, 2016|growth, International Monetary Fund, labor markets, Uncategorized, unemployment|

Robots, Growth & Inequality

by iMFdirect

Are robots taking over the world economy? Life imitates art, and as robotic technology becomes more sophisticated, robots could soon become perfect substitutes for human labor.

Continue reading “Robots, Growth & Inequality” »

Back to School Blogs

By iMFdirect

It’s been a busy summer, and you might not have had a chance to read everything as it came across your screen. So as your holidays wind down and you head to work, the editors at iMFdirect have put together some key blogs on hot topics to help you get back up to speed by September.

Continue reading “Back to School Blogs” »

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