Openness and Inequality: Distributional Impacts of Capital Account Liberalization

By Davide Furceri and Prakash Loungani

(Version in Español)

It is well accepted that trade generates winners and losers. The past few decades have seen increases not just in trade in goods and services but trade in assets, as countries relax restrictions on the ability of capital to flow across national boundaries. Surprisingly, while the impact of trade in goods and services on inequality has been extensively studied, little attention has been paid to the distributional impacts of opening up capital markets. Our paper fills this gap.

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By | November 24th, 2015|Economic outlook, Economic research, International Monetary Fund|

Make the Most of What You’ve Got: Small States in the Spotlight

Min ZhuBy Min Zhu

The economies of small states have unique features. They have relatively higher costs, higher public spending needs, and more volatile economies. And their growth has not matched the improved economic performance of the rest of the world since the late 1990s, despite their many efforts over the years. We wanted a better grasp of why this is so we can better tailor our advice and support. Here is what we found.

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By | April 1st, 2013|Asia, Emerging Markets, growth, IMF, International Monetary Fund|

Lively Debate on the Dead Sea Shores

One of my biggest (and heartening) takeaways was that there were more young people bubbling with ideas and entrepreneurial spirit (ready to take risk) than ever before at this regional forum—which reflects a growing recognition of their current role in the Arab Spring and the role they will have to play in the future as drivers of economic change.

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|
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