Drifting Apart: Income Convergence in the Euro Area

A souvenir shop in Lisbon, Portugal: Income convergence in the euro area has slowed (Photo: Rafael Marchante/REUTERS/Newscom)

By Jeffrey Franks and Hanni Schölermann

September 13, 2017

Versions in Español (Spanish), 語 (Japanese)

The experience of recent decades has challenged the prediction that the single currency would help differences in income levels across euro area countries narrow over time. This income convergence among the founding countries of the euro has not happened, prompting a need for further economic reforms. While newer members of the euro have converged, even this trend has stalled since the crisis.

Continue reading “Drifting Apart: Income Convergence in the Euro Area” »

Two Things That Keep Central Banks’ Reserve Managers Awake at Night

By Veronica Bacalu, Vincent Fleuriet, and Asad Qureshi

One of the central bank’s roles is to manage a country’s international reserves. But, central bank reserve managers have been losing sleep over two main issues: low interest rates, and how best to communicate the choices they make. Continue reading “Two Things That Keep Central Banks’ Reserve Managers Awake at Night” »

By | March 29th, 2017|IMF, interest rates, Investment, Low-income countries, Uncategorized|

Currency & Power

by iMFdirect

We have a global economy, but we don't have a global currency. Or do we?

In this podcast interview with Benjamin Cohen, professor of International Political Economy at the University of California, Cohen explains why currencies become internationalized, and examines the relationship between world currencies and State power. Continue reading “Currency & Power” »

Virtual Currencies: The Public Impact of Private Money

By iMFdirect

(Version in عربي中文, and Español)

Technology and finance have always gone together. So what's new this time around? Virtual currencies are part of a broader tech revolution that is driving fundamental change in the global economy.

Continue reading “Virtual Currencies: The Public Impact of Private Money” »

Latin American Firms: Keeping Corporate Vulnerabilities in Check

Four years after the Lehman Brothers crisis, private companies in the largest and most financially integrated Latin American countries are doing relatively well, despite continuous bouts of global uncertainty. Like firms in other high-performing emerging markets in Asia, companies in Brazil, Chile, Colombia, Mexico, and Peru (the “LA5”) have benefited from abundant external financing, strong domestic credit, and generally robust demand growth.

By | December 17th, 2012|Asia, Economic Crisis, Emerging Markets, Finance, growth, IMF, International Monetary Fund|

Capital Controls: When Are Multilateral Considerations of the Essence?

When should multilateral considerations trump national interests in the imposition of controls on capital flows? An IMF paper explores the reasons why countries may want to impose controls and looks at when the wider interest should be taken into consideration, requiring some multilateral principles for their safe management.

Rewriting the Macroeconomists’ Playbook in the Wake of the Crisis

Before the global economic crisis, mainstream macroeconomists had largely converged on a framework for the conduct of macroeconomic policy. The framework was elegant and conceptually simple, and it seemed to work. From the early 1980s on, macroeconomic fluctuations were increasingly muted, and the period became known as the “Great Moderation”. Then the crisis came. If nothing else, it forces us to do a wholesale reexamination of those principles. This raises questions that will keep us busy for years to come. To start exploring the answers, David Romer, Michael Spence, Joseph Stiglitz, and I have organized a conference at the IMF on March 7-8. Here are some ideas to get the conversation started.

Toughing It Out: How the Baltics Defied Predictions

The three Baltic states—Estonia, Latvia and Lithuania—were among the first victims of the global financial crisis. Although adjustment is still far from complete, a recovery is now underway. It is still too early to judge the success of the Baltic strategy, but it's fair to say that the most dire predictions have not come true.

By | January 7th, 2011|Economic Crisis, Emerging Markets, Employment, Fiscal Stimulus|
Load More Posts