Chart of the WeekHow a Collective Infrastructure Push Will Boost Global Growth

2020-11-25T09:39:06-05:00November 24, 2020|

By IMFBlog

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With vaccines around the corner, there is increased hope that the pandemic could soon be under better control. That said, the need for cooperative efforts to work toward a better future has never been greater. Priority areas relate to the need to produce and distribute vaccines globally, tackle climate change, and bolster the economic recovery from the crisis.

An IMF report published ahead of the G20 leaders meeting argues that a synchronized infrastructure investment push could invigorate growth, limit scarring, and address climate goals. In fact, when many countries act at the same time, public infrastructure investment could help lift growth domestically and abroad through trade linkages. This positive “spillover” effect could provide an additional boost to global output.

The spillovers created by higher demand are particularly impactful when economic conditions are weak and interest rates low. When economic conditions are strong, higher government spending may push inflation above the central bank’s target and trigger a monetary policy tightening, offsetting some of the initial boost to demand. But when conditions are weak and inflation is well below target, monetary policy is less likely to tighten in response to higher government […]

COVID-19 Pandemic and the Caribbean: Navigating Uncharted Waters

2020-04-30T08:08:26-04:00April 29, 2020|

By Krishna Srinivasan, Sònia Muñoz, and Varapat Chensavasdijai

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As the COVID-19 pandemic continues to spread across the globe—bringing severe human and economic costs—the Caribbean is no exception. With over 1,000 confirmed cases, many countries have taken strong containment measures, such as border closures and lockdowns, to “flatten the curve.” […]

Finding Solid Footing for the Global Economy

2020-02-21T09:44:28-05:00February 19, 2020|

By Kristalina Georgieva

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As the Group of Twenty industrialized and emerging market economies (G-20) finance ministers and central bank governors gather in Riyadh this week, they face an uncertain economic landscape.

After disappointing growth in 2019, we began to see signs of stabilization and risk reduction, including the Phase 1 U.S.-China trade deal. In January, the IMF projected growth to strengthen from 2.9 percent in 2019 to 3.3 percent in 2020 and 3.4 percent in 2021. This projected uptick in growth is dependent on improved performance in some emerging market and developing economies. […]

How To Deal With Failed Banks

2019-03-14T09:56:10-04:00July 3, 2018|

By Deniz Igan

July 3, 2018

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Reforms since the global financial crisis have made bail-ins a credible option and bail-outs less likely (photo: iStock by Getty Images)

During the global financial crisis, policymakers faced a steep trade-off in handling bank failures. Using public funds to rescue failing banks (bail-outs) could weaken market discipline and lead to excessive risk taking—the moral hazard effect. […]

Chart of the Week: The Rise of Corporate Giants

2019-03-14T10:45:05-04:00June 6, 2018|

By Federico J. Díez and Daniel Leigh

June 6, 2018

Versions in  中文Español, Français日本語,  PortuguêsРусский 

The market power of “superstar” companies in advanced economies is growing (photo: iStock by Getty Images)

The growing economic wealth and power of big companies—from airlines to pharmaceuticals to high-tech companies—has raised concerns about too much concentration and market power in the hands of too few. […]

Globalization Helps Spread Knowledge and Technology Across Borders

2019-03-14T13:16:37-04:00April 9, 2018|

By Aqib Aslam, Johannes Eugster, Giang Ho, Florence Jaumotte, Carolina Osorio-Buitron, and Roberto Piazza

April 9, 2018

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

Using artificial intelligence at a hospital in Qingdao, China: the spread of knowledge and technology between countries has intensified (photo: Sipa Asia/Sipa USA/Newscom).

It took 1,000 years for the invention of paper to spread from China to Europe. Nowadays, in a world that has become more integrated, innovations spread faster and through many channels.

Our research in Chapter 4 of the April 2018 World Economic Outlook takes a closer look at how technology travels between countries. We find that the spread of knowledge and technology across borders has intensified because of globalization. In emerging markets, the transfer of technology has helped to boost innovation and productivity even in the recent period of weak global productivity growth. […]

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