Posted on March 26, 2015 by iMFdirect
By Olivier Blanchard, Atish R. Ghosh, Mahvash S. Qureshi
As with previous crises, the global financial crisis has prompted greater calls for international policy cooperation, but it still remains very much like Nessie, the lovable Loch Ness monster: oft-discussed, seldom seen. To reflect on the obstacles to international policy cooperation, and how to make progress, the IMF recently hosted a panel discussion, Toward a More Cooperative International Monetary System: Perspectives from the Past, Prospects for the Future, with Maurice Obstfeld (CEA; University of Berkley), José Antonio Ocampo (Columbia University), Alexandre Swoboda (The Graduate Institute, Geneva), and Paul Volcker (Former Chairman, Federal Reserve).
Filed under: Economic Crisis, Economic outlook, Economic research, Global Governance, Globalization, growth, IMF, International Monetary Fund, Multilateral Cooperation, Politics, Reform | Tagged: capital flows, exchange rate, G-20, health care, international monetary system, international policy coordination, liquidity, Olivier Blanchard, trade | Leave a comment »
Posted on March 16, 2015 by iMFdirect
As many countries around the world are grappling with low growth, India has been marching in the opposite direction. The IMF’s Managing Director Christine Lagarde gave a speech at Lady Sri Ram College in New Delhi to talk about the global economy, India’s economy, and how quality of growth can benefit women, the poor, and the youth of India.
Filed under: Asia, Economic outlook, Economic research, Emerging Markets, Employment, growth | Tagged: Article IV, Christine Lagarde, India, women, youth | Leave a comment »
Posted on March 11, 2015 by iMFdirect
By Jochen Andritzky
(Versions in Español)
In housing crises, high mortgage debt can feed a vicious circle of falling housing prices and economic slowdown. As a result, more households default on their mortgages and the crisis deepens. A new IMF Working Paper studies the differences in the housing crises and policy responses in Iceland, Ireland, Spain, and the United States, and argues that crisis policies geared to provide temporary debt service relief for struggling households, followed by durable loan modifications, can help break this vicious circle.
Filed under: Advanced Economies, Economic Crisis, Economic outlook, Economic research, Europe, Financial Crisis, growth, IMF, International Monetary Fund, Investment, Reform | Tagged: Foreclosures, house prices, housing market, Iceland, Ireland, loans, mortgages, recession, Spain, United States | Leave a comment »
Posted on March 9, 2015 by iMFdirect
By Hamid Faruqee and Andrea Pescatori
(Version in Français)
In the aftermath of the 2008 financial crisis, Canada’s financial system held up remarkably well—making it the envy of its Group of Seven peers. This relative resilience was particularly impressive considering its most important trading and financial partner, the United States, was the epicenter of the crisis.
Part of Canada’s success story lies in the fact that its banking system is dominated by a handful of large players who are well capitalized and have safe, conservative, and profitable business models concentrated in mortgage lending—much of it covered by mortgage insurance and backstopped by the federal government. Notwithstanding such an enviable record and sound financial system, we need to keep an eye on certain financial risks.
Filed under: Advanced Economies, Economic outlook, Economic research, Finance, Financial Crisis, G-20, growth, IMF, International Monetary Fund, Investment | Tagged: bank lending, Canada, financial crisis, house prices, housing, housing market, loan-to-value ratio, mortgages, OECD, oil prices, trade, U.S. | 2 Comments »
Posted on March 2, 2015 by iMFdirect
By Jeff Hayden
We drew our inspiration for Finance & Development‘s cover from Diego Rivera’s Detroit Industry murals at the Detroit Institute of Arts. Rivera, a Mexican artist, was commissioned in 1932 to paint the 27-panel visual epic as a tribute to the city’s assembly-line workers, scientists, doctors, secretaries, and laborers, many of whom were struggling at the time to keep their jobs amid the devastation of the Great Depression.
Filed under: Advanced Economies, Asia, Economic outlook, Economic research, Emerging Markets, Employment, Europe, Fiscal policy, Globalization, growth, IMF | Tagged: advanced economies, central banks, economic growth, employment, euro area, F&D, Finance & Development magazine, fiscal policy, forecast, immigration, India, jobs, labor market, Spain, Sub-Saharan Africa, taxes | Leave a comment »
Posted on February 26, 2015 by iMFdirect
By Robert Rennhack and Fabián Valencia
(Versions in Español and Português)
The plunge in world oil prices—from $105 to about $50 per barrel since mid-2014—has been a boon for oil-importing countries, while presenting challenges for oil exporters.
In general, oil importers will enjoy faster growth, lower inflation, and stronger external positions, and most will not encounter any significant fiscal pressures. Oil exporters will tend to face slower growth and weaker external current account balances and some will run into fiscal pressures, since many rely on direct oil-related revenues. One country that stands out is Venezuela, which had been experiencing severe economic imbalances before oil prices began to fall and now finds itself in an even more precarious position.
Filed under: Advanced Economies, Economic outlook, Economic research, Globalization, growth, IMF, International Monetary Fund, Investment, Latin America, Reform | Tagged: barbados, Bolivia, Caribbean, Colombia, Costa Rica, Ecuador, energy prices, fuel price subsidy, Guatemala, Latin America, Mexico, oil exporters, oil prices, oil-importing countries, Venezuela | Leave a comment »
Posted on February 11, 2015 by iMFdirect
By Christopher Jarvis
(Version in عربي)
Egypt currently faces what may seem to be conflicting objectives. On the one hand, there’s an urgent need to restore economic stability—by achieving lower budget deficits, public debt and inflation, and adequate foreign exchange reserves. At the same time, there’s a long-standing need to achieve better standards of living—with more jobs, less poverty, and better health and education systems—one of the key reasons why people took to the streets in 2011.
Some might think that those two goals don’t go together—that the actions needed to reduce the budget and external deficits will necessarily take away from jobs and growth. But that’s not true. Some of the same policies that will improve Egypt’s financial situation can also help improve living standards.
Filed under: Economic Crisis, Economic outlook, Economic research, Employment, Financial Crisis, Government, growth, IMF, International Monetary Fund, Investment, Middle East, Public debt, Reform | Tagged: Arab Spring, Article IV, education, Egypt, fiscal deficit, health, inflation, infrastructure, jobs, Middle Eas, poverty, public debt, structural reform, tourism, unemployment | Leave a comment »