Top Ten Blogs of 2017

By IMFBlog

December 28, 2017

Read the top ten blogs of 2017 (photo: Times Square- New York-Pacific Press/SipaUSA/Newscom)

We have all had quite the year. Our readers' interests in 2017 focused on topics that affect how people live their lives: why wages are low, rising income and wealth inequality, household debt, climate change, and the scourge of corruption, to name a few.

As we wrap up the highs and lows of 2017 and get ready for whatever 2018 has in store, here is the list of the top ten blogs of the year based on readership. From all the elves editors at IMFBlog, we wish you a year of peace and interesting reads.

Continue reading “Top Ten Blogs of 2017” »

Improving Financial Stability in China

By Ratna Sahay and James P. Walsh

December 6, 2017

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

A man walks past a bank branch in Beijing: China’s leaders have made financial stability one of their top priorities (photo: Stephen Shaver/UPI/Newscom).

China’s leaders have made financial stability one of their top priorities. Given the size and importance of the Chinese market, with the world’s largest banks and second-largest stock market, that is welcome news for China and the world. The financial system permeates virtually all aspects of economic activity, having played a key role in facilitating rapid economic growth and in sharply reducing poverty rates.

China is moving from the world’s factory floor toward  a more modern, consumer-driven economy. During this transition, however, some tensions have emerged in the financial sector. Continue reading “Improving Financial Stability in China” »

A Dip into Subzero Policy Rates

by Giovanni Dell’Ariccia, Vikram Haksar, and Tommaso Mancini-Griffoli

August 3, 2017

Versions in ربي (Arabic), 中文 (Chinese),  Español (Spanish), 日本語 (Japanese); Русский (Russian)

A recent IMF paper looks at the effectiveness of negative interest rates, drawing on the initial experience of the euro area, Denmark, Japan, Sweden, and Switzerland (photo: Tuckraider/iStock by Getty Images)

Zero was gradually adopted in the ancient world—both east and west—as the ultimate point of reference, a point above and below which things change. For the ancient Egyptians, zero represented the base of pyramids. In science it became the freezing point of water, in geography the altitude of the sea, in history the starting point of calendars.

In the realm of monetary policy, zero was typically seen as the lower bound for interest rates. That has changed in recent years in the context of a slow recovery from the 2008 crisis. Several central banks hit zero and began experimenting with negative interest rate policies. Most did so to counter very low inflation, but some also were concerned about currencies that were too strong. Continue reading “A Dip into Subzero Policy Rates” »

How an Extended Period of Low Growth Could Reshape the Financial Industry

By Gaston Gelos and Jay Surti

Versions in  عربي (Arabic), Français (French), Русский (Russian), and Español (Spanish)

What happens if advanced economies remain stuck in a long-lasting funk marked by tepid growth, low interest rates, aging populations and stagnant productivity? Japan offers an example of the impact on banks, and our analysis suggests that there could also be far-reaching consequences for insurance companies, pension funds, and asset-management firms.

Continue reading “How an Extended Period of Low Growth Could Reshape the Financial Industry” »

Chart of the Week: Slowing Productivity: Why It Matters and What To Do

By IMFBlog

Output per worker and total factor productivity have slowed sharply over the past decade in most advanced economies and many emerging and developing countries.

Even before the global financial crisis, productivity growth showed signs of slowing in many advanced economies. But in the aftermath of the crisis, there was a further, abrupt deceleration. Continue reading “Chart of the Week: Slowing Productivity: Why It Matters and What To Do” »

Fintech—A Brave New World for the Financial Sector?

Lagarde.2015MDPORTRAIT4_114x128By Christine Lagarde

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

From smartphones to cloud computing, technology is rapidly changing virtually every facet of society, including communications, business and government. The financial world is no exception.

As a result, the financial world stands at a critical juncture. Yes, the widespread adoption of new technologies, such as blockchain-based systems, offers many potential benefits. But it also gives rise to new risks, including risks to financial stability. That causes challenges for financial regulators, a subject I addressed at the 2017 World Government Summit in Dubai.

Continue reading “Fintech—A Brave New World for the Financial Sector?” »

Islamic Banking Proposals Get IMF Approval

By Ghiath Shabsigh, Ross Leckow, and Zeine Zeidane

Versions in:  ArabicFrenchIndonesian, and Malay

Islamic banking, a small but fast-growing corner of the financial world, is receiving greater attention from regulators and policy makers. The IMF recently adopted a set of proposals on Islamic banking and called for a more comprehensive set of policies to ensure financial stability in countries with Islamic banking and support the sound development of the industry. The IMF is now calling for additional work and cooperation by its staff with other international agencies to improve the adoption of relevant standards for Islamic banking and to address remaining regulatory gaps.  Continue reading “Islamic Banking Proposals Get IMF Approval” »

The IMF is Not Asking Greece for More Austerity

By Maurice Obstfeld and Poul M. Thomsen

Versions in عربي (Arabic); Français (French); Deutsch (German); ελληνικά (Greek); and Español (Spanish)

Greece is once again in the headlines as discussions for the second review of its European Stability Mechanism (ESM) program are gaining pace. Unfortunately, the discussions have also spurred some misinformation about the role and the views of the IMF. Above all, the IMF is being criticized for demanding more fiscal austerity, in particular for making this a condition for urgently needed debt relief. This is not true, and clarifications are in order. Continue reading “The IMF is Not Asking Greece for More Austerity” »

By | December 12th, 2016|Debt Relief, Fiscal policy, IMF, International Monetary Fund|

The Role of Law in Preserving Financial Stability

By Sean Hagan and Ross Leckow

Since the 2008 global financial crisis, the international community has made a great deal of progress in strengthening legal frameworks governing the financial sector, but a great deal more needs to be done to implement international standards and develop appropriate approaches to emerging challenges.

Continue reading “The Role of Law in Preserving Financial Stability” »

Rethinking Policy at the IMF

By iMFdirect

The global financial crisis led to a broad rethink of macroeconomic and financial policies in the global academic and policy community. Eight months into the job as IMF Chief Economist, Maury Obstfeld reflects on the IMF’s role in this rethinking and in furthering economic and financial stability.

Continue reading “Rethinking Policy at the IMF” »

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