Posted on May 5, 2011 by iMFdirect
By David Owen
(Version in Русский)
Medium-term economic growth prospects in the Caucasus and Central Asia region are strong. But, to secure ongoing prosperity, the eight countries of the region—Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan—will need to look beyond traditional sources of growth.
The challenge for policymakers will be to foster new and more diverse growth drivers, outside mining, oil, and gas.
There are seven policy pillars that can help them do that: (more…)
Filed under: Economic outlook, Emerging Markets, International Monetary Fund | Tagged: bank financing, business environment, Caucasus and Central Asia, commodity prices, diversify growth, economic growth, foreign investment, global financial crisis, global recovery, governance, inequality, international trade, Regional Economic Outlook: Middle East and Central Asia, regional integration, sustainable growth, trade liberalization, unemployment | 3 Comments »
Posted on May 4, 2011 by iMFdirect
By Gustavo Adler and Camilo E. Tovar
(Version in Español)
Abundant global liquidity and high exposure to capital movements have put foreign exchange intervention at center stage of the policy debate in Latin America. Although intervention is widely used, there is limited evidence about its effects on the exchange rate, and particularly in terms of slowing the pace of currency appreciation.
In the latest Regional Economic Outlook: Western Hemisphere we took a fresh look at this issue, examining intervention practices and effectiveness for a group of economies in Latin America and other regions during 2004-10. In particular, we sought to answer the following questions:
- How do Latin American countries intervene and in what respects do they differ from other economies?
- What are the rationales for these policies?
- How effective have they been in affecting the exchange rate? (more…)
Filed under: Economic outlook, International Monetary Fund, Latin America | Tagged: capital flows, currency appreciation, derivative markets, exchange rate misalignment, exchange rate regimes, exchange rates, foreign exchange intervention, intervention rules, liquidity conditions, overvalued currency, Regional Economic Outlook: Western Hemisphere, spot markets | 3 Comments »
Posted on May 2, 2011 by iMFdirect
The global financial crisis caused immense hardship and suffering all over the world. To prevent a repeat, we need to rethink…
… what we know about economic theory …. We need to rethink, following this, the policies … coming from the analytical work. And then we will need also to rethink multilateralism.
IMF Managing Director Dominique Strauss-Kahn (April 16, 2011)
A wholesale reexamination of macroeconomic principles in the wake of the crisis was the goal of a conference at the IMF in early March.
But, for Olivier Blanchard and others, the conference was merely “the beginning of a conversation, the beginning of an exploration.”
Here is our list of recommended reads to help you be part of the conversation. (more…)
Filed under: Economic Crisis, Economic research, International Monetary Fund | Tagged: David Romer, global economic crisis, Joseph Stiglitz, Macro and Growth Policies in the Wake of the Crisis, macroeconomic models, macroeconomic policy, macroeconomists' playbook, Michael Spence | 7 Comments »