Global Financial Crisis

Financial Stability Improves, But Rising Vulnerabilities Could Put Growth at Risk

October 11, 2017

Versions in Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish), Français (French)

The headquarters of the European Central Bank in Frankfurt, Germany: To avoid causing market turbulence, central banks will have to clearly communicate their plans to gradually unwind crisis-era policies (photo: Caro/Sven Hoffman/Newscom).

It seems like a paradox. The world’s financial system is getting stronger, thanks to healthy economic growth, buoyant markets, and low interest rates. Yet despite these favorable conditions, dangers in the form of rising financial vulnerabilities are starting to loom. That is why policymakers should act now to keep those vulnerabilities in check. Continue reading “Financial Stability Improves, But Rising Vulnerabilities Could Put Growth at Risk” »

By IMFBlog| October 11th, 2017|Advanced Economies, Annual Meetings, banking, capital flows, capital markets, Debt Relief, Economic outlook, Economic research, education, Financial markets, G-20, Global Governance, Globalization, Government, housing, inclusive growth, interest rates, International Monetary Fund, Investment, Public debt, taxation|

Global Economic Upswing Creates a Window of Opportunity

By Maurice Obstfeld

October 10, 2017

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

The global recovery is continuing, and at a faster pace. The picture is very different from early last year, when the world economy faced faltering growth and financial market turbulence. We see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well as emerging Asia.

The latest World Economic Outlook has therefore upgraded its global growth projections to 3.6 percent for this year and 3.7 percent for next—in both cases 0.1 percentage point above our previous forecasts, and well above 2016’s global growth rate of 3.2 percent, which was the lowest since the global financial crisis. Continue reading “Global Economic Upswing Creates a Window of Opportunity” »

By IMFBlog| October 10th, 2017|Advanced Economies, capital markets, developing countries, Economic outlook, Emerging Markets, Employment, Environment, Financial Crisis, Fiscal policy, Global Governance, Government, IMF, inclusive growth, Inequality, monetary policy, structural reforms, technology, trade, wages|

What We Have Seen and Learned 20 Years After the Asian Financial Crisis

By Mitsuhiro Furusawa

July 13, 2017

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

A trader in Seoul, South Korea: Asia is the largest contributor to global growth (photo: Ryu Seung-il/Polaris/Newscom)

Asia today is the fastest-growing region in the world, and the largest contributor to global growth. It has six members of the Group of Twenty advanced and emerging economies, and its economic and social achievements are well recognized.

But 20 years ago, July 1997 marked the beginning of the Asian Financial Crisis, when a combination of economic, financial and corporate problems triggered a sharp loss of confidence and capital outflows from the region’s emerging market economies. The crisis began in Thailand on July 2, when the baht’s peg to the dollar was dropped, and eventually spread to Korea, Indonesia and other countries. Continue reading “What We Have Seen and Learned 20 Years After the Asian Financial Crisis” »

By IMFBlog| July 13th, 2017|Asia, banking, capital markets, currency, Economic Crisis, Emerging Markets, Financial Crisis, Financial markets, IMF, International Monetary Fund, Japan, Uncategorized|

How Trade with China Boosts Productivity

By JaeBin Ahn and Romain Duval

May 24, 2017

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

Container port, Qingdao city, China. Trade with China has helped improve living standards in advanced economies through higher productivity (photo: Imagine China/Newscom)

Advocates of protectionist policies in advanced economies blame job losses on growing trade with China, and influential researchers have provided some empirical backing for their claims. Yet the benefits of trade with China are often overlooked. Among them is faster growth in productivity—the key driver of improved living standards. This suggests that rather than erecting new barriers to trade, advanced economies should continue to open up—while doing much more to help those who have lost their jobs to overseas competition. Continue reading “How Trade with China Boosts Productivity” »

By IMFBlog| May 24th, 2017|Advanced Economies, China, Economic research, exports, IMF, imports, Investment, jobs, trade, Uncategorized|

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” »

By IMFBlog| April 3rd, 2017|Advanced Economies, developing countries, Economic research, Emerging Markets, financial policy, International Monetary Fund, productivity, structural reforms, Uncategorized|

Why International Financial Cooperation Remains Essential

By Tobias Adrian and Maurice Obstfeld

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

Economic growth appears to be strengthening across the large economies, but that does not mean financial-sector regulation can now be relaxed. On the contrary, it remains more necessary than ever, as does international cooperation to ensure the safety and resilience of global capital markets. That is why the Group of Twenty (G20) finance ministers and central bank governors reiterated their support for continuing financial-sector reform at their meeting in Baden-Baden last week. Continue reading “Why International Financial Cooperation Remains Essential” »

By IMFBlog| March 23rd, 2017|banking, Financial Crisis, Financial regulation, G-20, International Monetary Fund, Uncategorized|

Chart of the Week: The Productivity Puzzle

By iMFdirect

Technological change seems to be happening faster than ever. The prospect of driverless cars, robot lawyers, and 3D-printed human organs becoming commonplace suggests a new wave of technological progress. Continue reading “Chart of the Week: The Productivity Puzzle” »

By IMFBlog| March 13th, 2017|Advanced Economies, Economic research, growth, IMF, jobs, Uncategorized|

What to Do about Growth

By Camilla Lund Andersen

Deep unease about rising inequality and stagnating living standards in advanced economies was at the heart of the 2016 political upheaval. Globalization and trade have been blamed, but entrenched slow growth—what economists call secular stagnation—may be the real culprit. Parents who took for granted that their children would enjoy a brighter future had their dreams dashed by the global financial crisis of 2008. Nine years later, rising populism and a return to nationalist, inward-looking policies threaten to unravel the postwar economic order. Continue reading “What to Do about Growth” »

By IMFBlog| February 28th, 2017|Advanced Economies, developing countries, Emerging Markets, Globalization, growth, IMF, Inequality|

China’s Rebalancing Explained in 6 Charts

By Longmei Zhang

Version in 中文 (Chinese)

The word “rebalancing” is often used to describe China’s economic transition. But what does it mean? And how much is China rebalancing? A recent IMF paper attempts to answer these questions. Continue reading “China’s Rebalancing Explained in 6 Charts” »

By IMFBlog| September 6th, 2016|Advanced Economies, Asia, climate change, Financial markets, growth, Inequality, International Monetary Fund, Reform, Uncategorized|

Five Lessons from a Review of Recent Crisis Programs

By Vivek Arora

Version in 中文 (Chinese), Español (Spanish)

IMF lending increased to unprecedented levels in the aftermath of the global financial crisis. As difficulties emerged, we extended financial support to countries across the world—in the euro area, Africa, Asia, the Middle East, and emerging economies in Europe.

The IMF tried to draw lessons in real time as the crisis evolved in order to adapt our operations. We reviewed individual programs and, from time to time, paused and took stock of our experience across countries.

Continue reading “Five Lessons from a Review of Recent Crisis Programs” »

By IMFBlog| July 11th, 2016|Economic research, Financial Crisis, Fiscal policy, IMF, International Monetary Fund, Multilateral Cooperation, Uncategorized|

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