Chart of the Week: Ireland’s Fight Against Income Inequality
By IMFBlog
June 30, 2017
Shoppers in Dublin, Ireland: the country has high income inequality, before taxes and transfers (photo: Caro Rupert Oberhaeuser/Newscom)
Ireland’s economy continues to recover after a housing market crash in 2008 plunged the country into a deep and severe crisis. The strong social welfare system provided an important cushion against the worst effects of the crisis.
Ireland’s tax-benefit system is one of the most effective in the European Union in redistributing income. The tax system is relatively progressive and funds a robust system of social benefits, a significant share of which is means-tested. Income inequality before taxes and transfers in Ireland is high—37 percent of income is held by the top 10 percent of income earners. Social transfers make up about 70 percent of income for the bottom 20 percent of earners.
Continue reading “Chart of the Week: Ireland’s Fight Against Income Inequality” »
Migration and Remittances in Latin America and the Caribbean: Brain Drain Versus Economic Stabilization
By Svetlana Cerovic and Kimberly Beaton
June 29, 2017
Versions in Español (Spanish) and Português (Portuguese)
People waiting to withdraw money in La Cruz, Costa Rica: emigrants from Latin America send home sizable remittances (photo: Juan Carlos Ulate/Reuters/Newscom)
Many people from Latin America and the Caribbean live and work abroad. Migrants have been motivated to leave their home country in search of better job opportunities and, in some cases, a more secure environment. Their families at home often benefit from the remittances migrants send home, which help improve their standard of living, health care, and education. Remittances also provide financial resources for trade and investment, which helps boost the country’s growth. Continue reading “Migration and Remittances in Latin America and the Caribbean: Brain Drain Versus Economic Stabilization” »
Assessing Global Imbalances: The Nuts and Bolts
June 26, 2017
Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese), and Русский (Russian)
Men playing chess: countries with rapidly aging populations need funds that they can draw down when their workers retire (photo: Caro/Jandke/Newscom)
Current account imbalances can be healthy or a sign of macroeconomic and financial stress—which makes their evaluation tricky. In line with its mandate of promoting international monetary cooperation, the IMF conducts annual external assessments for the world’s largest economies. The objective is to alert the global community to potential risks that countries need to address together.
Countries, like households, may spend above their incomes sometimes, and below them at other times. A country that spends above its income imports more goods and services than it exports and is said to have a current account deficit. It finances this deficit by incurring liabilities to the rest of the world, or by borrowing from it. Continue reading “Assessing Global Imbalances: The Nuts and Bolts” »
Banking On the Go
By IMFBlog
June 23, 2017
Tayo Oviosu at IMF lecture (photo: Ryan Rayburn/IMF staff)
Worldwide, more than two billion people are without bank accounts, and only one in three adults in sub-Saharan Africa has access to any type of financial services. In this podcast, Tayo Oviosu, founder and CEO of Nigeria's leading mobile payment platform, Paga, reveals how his company is rapidly bringing millions of unbanked Nigerians into the banking fold. Continue reading “Banking On the Go” »
Fintech: Capturing the Benefits, Avoiding the Risks
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” »
Chart of the Week: A Storm by Any Other Name
By IMFBlog
June 19, 2017
Women look at destruction after Hurricane Matthew struck Haiti ( photo: Patrick Farrell/Miami Herald/TNS)
Hurricane season officially began June 1, and we can expect a busy season of damaging storms in the Atlantic, according to the National Oceanic and Atmospheric Administration’s outlook.
Hurricanes are the leading cause of natural disasters in the Caribbean, making the region one of the most vulnerable in the world. Yet, only 62 percent of disasters caused by hurricanes have recorded data on economic damages, as the information is difficult to collect. Continue reading “Chart of the Week: A Storm by Any Other Name” »
Looking Back to Move Ahead
By IMFBlog
June 16, 2017
Ian Goldin at IMF lecture (photo: IMF staff)
While advances in science and technology are rapidly propelling human achievement into the future, Ian Goldin says history shows us how to handle the changes occurring in the world today. Continue reading “Looking Back to Move Ahead” »
Two to Tango—Inflation Management in Unusual Times
By Vitor Gaspar, Maurice Obstfeld, and Chang Yong Rhee
June 15, 2017
Versions in 中文 (Chinese), and 日本語 (Japanese)
Shinjuku shopping district, Tokyo, Japan. Strong coordination between monetary and fiscal policies can help Japan tackle its low inflation (photo: Nikada/iStock/Getty Images)
Monetary and fiscal policies interact in complex ways. Yet modern institutional arrangements typically feature a strict separation of responsibilities. For example, the central bank targets inflation and smooths business cycle fluctuations, while the fiscal authority agrees to respect its budget constraint and to support financial stability by maintaining the safe asset status of its debt. This gives governments the freedom to pursue a multiplicity of economic and social objectives (in IMF parlance, inclusive growth).
Continue reading “Two to Tango—Inflation Management in Unusual Times” »
Chart of the Week: FDI in Financial Centers
By IMFBlog
June 13, 2017
International financial flows have declined significantly after the crisis, and their composition has changed. As portfolio and other investment flows took a dip between 2007 and 2015, foreign direct investment (FDI) continued to surge. The increase is concentrated in financial centers, which now account for almost half of global FDI claims.
Continue reading “Chart of the Week: FDI in Financial Centers” »
The Compact with Africa—The Contribution of the IMF
June 12, 2017
Versions in عربي (Arabic), 中文 (Chinese), Deutsch (German), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)
IMF Managing Director Christine Lagarde on a visit to Nigeria in 2016 (photo: IMF staff/Steve Jaffe)
Some of the world’s top policymakers and investors are gathering in Berlin to discuss a new initiative that could help reshape Africa’s economic future.
Millions of citizens could see tangible economic benefits from the recently launched Group of Twenty advanced and emerging economies' initiative, known as the “Compact with Africa.” The goal is to boost private investment by harnessing the expertise and resources of governments, investors, and international organizations.
The Compact is about facilitating projects that can lift productivity and living standards. It is about creating fresh opportunities on a continent where 70 percent of the population is under 35 years of age.
Continue reading “The Compact with Africa—The Contribution of the IMF” »
