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” »

Countries in the IMF Financial Spotlight in 2018

By IMF Blog

January 31, 2018

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

Financial sector assessments are showing that countries and financial systems are adapting better methods to monitor financial vulnerabilities (photo: Ingram Publishing/Newscom).

The IMF in 2018 will complete ten assessments of countries’ financial systems, to identify risks and propose policies to strengthen their financial stability. Three of this year’s reviews will be for countries with Systemically Important Financial Systems : Belgium, Brazil and Poland. In addition, IMF experts will assess the euro area’s financial stability. Other financial stability assessments will cover Armenia, Jamaica, Namibia, Peru, Romania, and Tanzania.

Continue reading “Countries in the IMF Financial Spotlight in 2018” »

Latin America and the Caribbean in 2018: An Economic Recovery in the Making

By Alejandro Werner

January 25, 2018

Versions in Español (Spanish) and Português (Portuguese)

Latin America’s economic recovery is expected to benefit from higher commodity prices (photo: iStock by Getty Images)

Recent trends in the world economy and financial markets are good news for Latin America. Global growth and trade are on an upswing, and we expect the momentum to continue in 2018. Stronger commodity prices have also helped the region rebound. Continue reading “Latin America and the Caribbean in 2018: An Economic Recovery in the Making” »

The Current Economic Sweet Spot Is Not the “New Normal”

By Maurice Obstfeld

January 22, 2018

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

Global growth continues to pick up and is broad based. But no matter how tempting it is to sit back and enjoy the sunshine, policy can and should move to strengthen the recovery (photo: Mumbai, India, Ingram Publishing/Newscom).

As the year 2018 begins, the world economy is gathering speed. The new World Economic Outlook Update revises our forecast for the world economy’s growth in both 2018 and 2019 to 3.9 percent. For both years, that is 0.2 percentage points higher than last October’s forecast, and 0.2 percentage points higher than our current estimate of last year’s global growth. Continue reading “The Current Economic Sweet Spot Is Not the “New Normal”” »

Slowly but Surely, a Farewell to Fossil Fuels

By IMFBlog

January 19, 2018

Repairs to an oil rig in North Dakota, United States: Eighty percent of the world’s energy consumption is based on fossil fuels (photo: North Dakota/Jim Gehrz/MCT/Newscom).

This has never happened before. Never. Three years of stagnating carbon dioxide emissions coupled with relatively healthy global economic growth. In this podcast , International Energy Agency Chief Economist Laszlo Varro talks about leaving fossil fuels in the past. Continue reading “Slowly but Surely, a Farewell to Fossil Fuels” »

Fed Tightening May Squeeze Portfolio Flows to Emerging Markets

By Robin Koepke

December 14, 2017

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

Derivatives traders in Singapore: Tighter Federal Reserve monetary policy is likely to reduce overseas purchases of emerging market stocks and bonds (photo: Caro/Rupert Oberhaeuser/Newscom)

A key question facing global investors today is what impact the US Federal Reserve’s monetary policy normalization process will have on capital flows to emerging markets. The IMF’s new model estimates show that normalization—raising the policy interest rate and shrinking the balance sheet—will likely reduce portfolio inflows by about $70 billion over the next two years, which compares with average annual inflows of $240 billion since 2010. Continue reading “Fed Tightening May Squeeze Portfolio Flows to Emerging Markets” »

Inequality: Tools from the Old Masters to Help Today’s Policymakers

By Vitor Gaspar, Paolo Mauro, and Tigran Poghosyan

October 3, 2017

Unemployed day laborers in South Africa: the country has relatively high income, but also high inequality (photo: Rogan Ward/Newscom).

With inequality rising in many countries, policymakers need to choose the best fiscal policies that will help share the benefits of economic growth, and in so doing, make it more inclusive.

The early 20th century English economist Arthur Pigou, among others, saw economic welfare as influenced by both “the size of the national dividend” and “the way in which it is distributed among the members of the community.” Continue reading “Inequality: Tools from the Old Masters to Help Today’s Policymakers” »

Back-to-School Blogs

By IMFBlog

September 5, 2017

Back to school in Paris, France: get caught up on our top blogs you may have missed over the summer (photo: LAURENT CHAMUSSY/SIPA/Newscom)

What a summer it’s been. To help you get a handle on all that has happened in the global economy, our editors have compiled a handy primer of our blogs published over the summer months. Continue reading “Back-to-School Blogs” »

The Benefits and Costs of a U.S. Tax Cut

By Sandra Lizarazo, Adrian Peralta-Alva, and Damien Puy

September 1, 2017

Versions in Español (Spanish)

A recent IMF paper looks at the effects of lowering personal income tax rates on income distribution and the U.S. economy (photo: Ingram Publishing/Newscom)

U.S. lawmakers getting ready to rewrite the nation’s tax code have a fundamental question to answer: What are the priorities for tax reform? Do you want faster growth? Less income inequality? A tax cut that doesn’t increase the budget deficit? In a recent working paper, we find that, depending on how a tax cut is targeted, it is possible to make some progress toward the first two objectives. Personal income tax cuts can help support growth and, if well targeted, can also help improve income distribution. However, we find that lowering personal income tax rates does not raise growth enough to offset the revenue loss that is caused by the tax cut itself. Continue reading “The Benefits and Costs of a U.S. Tax Cut” »

Global Cooperation—An Uphill Battle: Finance & Development magazine

By Camilla Lund Andersen

August 30, 2017

As access to information burgeons, experts are more crucial than ever. 

This issue of F&D looks at what is arguably the clearest challenge the world faces: how to address complex global problems amid growing skepticism about the benefits of multilateralism and continued global integration.

Continue reading “Global Cooperation—An Uphill Battle: Finance & Development magazine” »

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