Sovereign Wealth Funds in the New Era of Oil

By Rabah Arezki, Adnan Mazarei, and Ananthakrishnan Prasad 

(Versions in عربي and 中文)

As a result of the oil price plunge, the major oil-exporting countries are facing budget deficits for the first time in years. The growth in the assets of their sovereign wealth funds, which were rising at a rapid rate until recently, is now slowing; some have started drawing on their buffers.

In the short run, this phenomenon is not cause for alarm. Most oil exporters have enough buffers to withstand a temporary drop in oil prices. But what will happen if low oil prices persist, and how will policymakers react?

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Empowering Women, Tackling Income Inequality

By Sonali Jain-Chandra, Kalpana Kochhar, and Monique Newiak

(Versions in عربي中文Français日本語Русский, and Español)

Despite progress, wide gaps between women and men’s economic empowerment and opportunity remain, which policymakers need to tackle urgently. In most countries, more men than women work, and they get paid more for similar work. Also, there are considerable gender gaps in access to education, health and finance in a number of countries. There is mounting evidence that the lack of gender equity imposes large economic costs as it hampers productivity and weighs on growth.

Our new study analyzes the links between these two phenomena—inequality of income and that of gender.  We find that gender inequality is strongly associated with income inequality across time and countries of all income groups.

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To Hike or Not to Hike? Monetary Policy in Latin America During Fed Liftoff

By Carlos Caceres, Yan Carrière-Swallow, and Bertrand Gruss

(Versions in Español and Português)

As the U.S. Federal Reserve prepares to raise policy rates for the first time in almost a decade, Latin America is in the midst of a sharp downturn with unemployment on the rise. In this context, many central banks across the region have kept interest rates low to support economic activity. But can monetary policy stay that way as global rates rise? What will the Fed liftoff imply for the region?

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Corruption and Governance

by iMFdirect

In development circles, governance is often a code word for corruption. But Daniel Kaufmann, president of the Natural Resource Governance Institute, says governance is much broader. In this podcast, Kaufmann talks about how good governance can triple a country’s per capita income.

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How to Manage the Commodity Roller Coaster

Vitor Gasparby Vitor Gaspar 

(Versions: عربي中文FrançaisРусский, and Español)

The world economy is experiencing important transitions and associated uncertainties.

  • Commodity prices have fallen sharply, with adverse consequences for exporting countries.
  • China’s rebalancing and the prospect of U.S. interest rate increases are having important and costly spillover effects on other economies.
  • And these and other factors are posing important fiscal challenges, especially for emerging markets.

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Global Financial Stability: Vulnerabilities, Legacies, and Policy Challenges

GFSRBy José Viñals

(Versions in 中文FrançaisРусский, and Español)

Today global financial stability is not yet assured and downside risks prevail. Our recommendation is for an urgent upgrade in policies, to avoid downside risks and to achieve our upside scenario of “successful normalization” of monetary and financial conditions. This will secure financial stability and strengthen the economic recovery.

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The Quest for Robust and Synchronized Growth

Maurice Obstfeld2By Maurice Obstfeld

(Versions in Españolعربي, 中文Français, Русский and 日本語)

Today, we released the October 2015 World Economic Outlook.

Our forecasts come at a moment when the world economy is at the intersection of at least three powerful forces.

First, China’s economic transformation – away from export- and investment-led growth and manufacturing, in favor of a greater focus on consumption and services. This process, however necessary and healthy in the longer term, has near-term implications for China’s growth and its relations with its trade partners.

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