Thinking Beyond the Crisis: Themes from the IMF’s 10th Annual Research Conference

Posted on November 30, 2009 by iMFdirect

The Mundell-Fleming lecture by Ricardo Caballero (MIT), presented to the IMF’s 10th annual research conference, drew a striking parallel between a sudden cardiac arrest and a financial crisis. The best option during a sudden cardiac arrest is to use a defibrillator. Ricardo argued that, using the analogy between the two events, we need to have “financial defibrillators” readily available during financial crises as well.

Filed under: Economic Crisis, Economic research, IMF | Tagged: , , , , , , | Leave a Comment »

This Time Is Different—Fiscal Policy in Low-income Countries

Posted on November 25, 2009 by iMFdirect

By Carlo Cottarelli When it comes to the crisis, most of the media attention is focused on advanced and emerging market countries. But low-income countries have been badly hit too, reflecting their growing integration in the world economy. We can see sharp declines in exports, FDI, tourism, and remittances. Output growth in 2009 will be [...]

Filed under: Economic Crisis, Fiscal Stimulus, Low-income countries | Tagged: , , , , , , | 2 Comments »

Climate Change—Some Simple (and Quite Convenient) Truths

Posted on November 23, 2009 by iMFdirect

As world leaders gather in Copenhagen, climate change is again in the headlines. The science of the issue can get pretty incomprehensible pretty quickly. And the politics are clearly very ugly. Let’s not forget, however, that much of the economics is simple.

Filed under: Economic Crisis | Tagged: , , , , , , | 6 Comments »

The Health Care Challenge: Not Just a U.S. Problem

Posted on November 20, 2009 by iMFdirect

Health spending in OECD countries increased from 4½ percent of GDP in 1960 to 12½ percent in 2007. What accounts for this dramatic increase? Income growth, insurance, demographics, and technological change all contributed, but the latter was the key driver.

Filed under: Advanced Economies, Economic Crisis | Tagged: , , , , , | 3 Comments »

Balancing Fiscal Support with Fiscal Solvency

Posted on November 18, 2009 by iMFdirect

Fiscal deficits cannot be lowered in the immediate future. For the time being, fiscal (and monetary) policies must continue to support economic activity. The economic recovery is uneven and could be threatened by any premature withdrawal of policy support. Private demand is still unable to stand on its own two feet. This gives rise to a policy conundrum. How can we reconcile the competing requirements of short-term support for the economy and longer term fiscal solvency?

Filed under: Advanced Economies, Economic Crisis, Fiscal Stimulus, growth | Tagged: , , , , , , | 3 Comments »

Post-Crisis: What Should Be the Goal of a Fiscal Exit Strategy?

Posted on November 16, 2009 by iMFdirect

One obvious fallout of the global financial crisis is a huge deterioration in fiscal conditions, particularly in advanced countries. The numbers are nothing short of staggering. Gross general government debt in the G-20 advanced economies is projected to approach 120 percent of GDP by 2014, up from about 80 percent in 2007, and this is even assuming no renewal of fiscal stimulus beyond 2010.

Filed under: Economic Crisis, Financial Crisis, Fiscal Stimulus, IMF | Tagged: , , , , , , , , | 2 Comments »

Asia and the IMF: Toward a Deeper Engagement

Posted on November 12, 2009 by iMFdirect

The Managing Director of the IMF, Dominique Strauss-Kahn, begins a six-day trip to Asia. First he’s in Singapore attending the 16th Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting, and then goes on to China November 16-17, one of the region’s most dynamic economies.

Filed under: Asia, Economic Crisis, IMF, International Monetary Fund, Multilateral Cooperation, recession | Tagged: , , , , , , , , , | Leave a Comment »

Asia’s Corporate Saving Mystery

Posted on November 8, 2009 by iMFdirect

As Asia starts down the path to recovery, it is going to have to tackle two issues which are constraining its long-term growth potential: firms that save but do not invest and wealthy households that are reluctant to consume.

Filed under: Asia, Economic research, Emerging Markets, growth, recession | Tagged: , , , , | 9 Comments »

Aristotle as an IMF Economist: Asia’s Difficult Balancing Act

Posted on November 4, 2009 by iMFdirect

Despite budding green shoots in Asia, policymakers in the region will need to be cautious about how they sustain this fragile economic recovery. In the coming year, they will need to pull off a difficult balancing act.

Filed under: Asia, Economic Crisis, growth, IMF, recession | Tagged: , , , , | 1 Comment »

The Puzzle of Asia’s Rapid Rebound

Posted on November 2, 2009 by iMFdirect

Now here’s the puzzle: how is it that Asia has rebounded sooner and more strongly than the rest of the globe from the economic slump when the region is so heavily dependent on exports for its growth? This, and the future prospects for the region, are two of the key issues we analyzed in the latest Regional Economic Outlook (REO) for Asia and the Pacific, recently launched in Seoul and Tokyo.

Filed under: Asia, Economic Crisis, Fiscal Stimulus, growth | Tagged: , , , , , , | 4 Comments »

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