Shifting Tides: Policy Challenges and Opportunities for the G-20

By Christine Lagarde

July 18, 2018

Versions in عربي中文Español, Français 日本語, Português, Русский 

Cars to be shipped abroad, Jiangsu, China: trade tariffs have gone into effect and export orders have decreased (photo: Imagine China/Newscom)

The artist Claude Monet once said, “I worked without stopping, for the tide at this moment is just as I need it.” As the Group of Twenty finance ministers gather this week at the banks of the Rio de la Plata in Buenos Aires they should be inspired by the words of Monet, and take advantage of global growth before the tides change. Continue reading “Shifting Tides: Policy Challenges and Opportunities for the G-20” »

By | July 18th, 2018|Advanced Economies, Europe, Global Governance, Globalization, trade, U.S.|

Chart of the Week: An Answer to the U.S. Wage Puzzle

By Yasser Abdih

July 10, 2018

Hiring is strong, but workers still aren’t seeing big raises (photo: Kutay Tanir/Getty Images by iStock).

Wages in the US have grown slowly in recent years, even as the unemployment rate has fallen to the lowest levels in decades. Continue reading “Chart of the Week: An Answer to the U.S. Wage Puzzle” »

By | July 10th, 2018|Advanced Economies, labor markets, productivity, U.S., unemployment, wages|

An Imbalance in Global Banks’ Dollar Funding

By John Caparusso, Yingyuan Chen, Hideo Hashimoto, David Jones, Will Kerry and Aki Yokoyama

June 12, 2018

Versions in Español, DeutscheFrançais, 日本語Português

The US Treasury is issuing more T-bills, potentially putting upward pressure on the interest rates non-US banks must pay for short-term dollar funding (photo: Jennifer Hack/KRT/Newscom)

For companies and investors outside the United States, the dollar is often the currency of choice. Surprisingly, though, US banks play only a limited role in lending dollars to international borrowers. Most of the $7 trillion in banks’ dollar lending outside the United States is handled by banks based in Europe, Japan and elsewhere. Continue reading “An Imbalance in Global Banks’ Dollar Funding” »

By | June 12th, 2018|Advanced Economies, banking, currency, Europe, U.S.|

Chart of the Week: Distribution of Globalization’s Gains

By IMFBlog

May 31, 2018

A garment factory in Ethiopia, which globalization has helped to boost its growth (photo: Kay Neitfeld/Newscom).

While globalization is generally good for economic growth, the benefits are subject to diminishing marginal returns, according to a recent study of 147 countries from 1970 to 2014. The study looks at how globalization affects the distribution of incomes across and within countries.   Continue reading “Chart of the Week: Distribution of Globalization’s Gains” »

Chart of the Week: Greenery and Prosperity

By João Tovar Jalles and Prakash Loungani

May 21, 2018

Versions in  中文, Español, Français, 日本語,  Português 

Brandenburg, Germany: in three advanced economies—Germany, the United Kingdom, and France—emissions have fallen despite the increase in incomes (photo: Caro / Kaiser/Newscom).

Economic growth has traditionally moved in tandem with pollution. But can countries break this link and manage to grow while lowering pollution?

Continue reading “Chart of the Week: Greenery and Prosperity” »

Mapping Income Polarization in the United States

By Ali Alichi and Rodrigo Mariscal

May 15, 2018

Versions in EspañolPortuguês

Investment in education an important countervailing force in addressing income inequality (photo: Istock by Getty Images).

When it comes to income inequality among American households, outcomes have varied widely across the 50 U.S. states.  The impact of international competition gets a lot of the blame, along with automation, in states that have fared the worst. Continue reading “Mapping Income Polarization in the United States” »

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” »

Global Economy: Good News for Now but Trade Tensions a Threat

By Maurice Obstfeld

April 17, 2018

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

Container ship in Colombo, Sri Lanka: the recent escalating tensions over trade present a growing risk to the global economy (photo: STRINGER/REUTERS/Newscom).

The world economy continues to show broad-based momentum. Against that positive backdrop, the prospect of a similarly broad-based conflict over trade presents a jarring picture.

Three months ago, we updated our global growth forecast for this year and next substantially, to 3.9 percent in both years. That forecast is being borne out by continuing strong performance in the euro area, Japan, China, and the United States, all of which grew above expectations last year. We also project near-term improvements for several other emerging market and developing economies, including some recovery in commodity exporters. Continuing to power the world economy’s upswing are accelerations in investment and, notably, in trade. Continue reading “Global Economy: Good News for Now but Trade Tensions a Threat” »

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” »

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” »

Load More Posts