Posted on April 6, 2015 by iMFdirect
By Mohamed Norat, Marco Pinon and Zeine Zeidane
(Versions in عربي)
Since the global financial crisis, policymakers have sought to press the “reset” button to strengthen financial intermediation that is performed by conventional banks and non-bank financial institutions. The aim has been to address the fault lines that helped trigger one of the most devastating financial crises in a century, and to enable a more inclusive, stable financial system that promotes stability as well as economic development and growth.
Islamic finance offers several features that are consistent with these objectives. Islamic finance refers to financial services that conform with Islamic jurisprudence, or Shari’ah, which bans interest, speculation, gambling and short-sales; requires fair treatment; and institutes sanctity of contracts. And these principles hold the promise of supporting financial stability, since a key tenet of Islamic finance is that lenders should share in both the risks and rewards of the projects and loans they finance.
Filed under: Asia, Economic research, Emerging Markets, Financial regulation, Fiscal policy, Globalization, Government, growth, IMF, International Monetary Fund, Investment, Middle East | Tagged: Asia, financial crisis, Hong Kong, Islamic banking, islamic finance, Luxembourg, Middle East, real estate, senegal, Shariah, South Africa, sukuk, tax, United Kingdom | Leave a comment »
Posted on April 2, 2015 by iMFdirect
By Olivier Blanchard
Seven years since the onset of the global financial crisis, we are still assessing how the crisis should change our views about macroeconomic policy. To take stock, the IMF organized two conferences, the first in 2011, the second in 2013, and published the proceedings in two books, titled “In the Wake of the Crisis” and “What Have We Learned?“.
The time seems right for a third assessment. Research has continued, policies have been tried, and the debates have been intense. But have we truly made much progress? Are we closer to a new framework? To address these questions, Raghuram Rajan, Ken Rogoff, Larry Summers and I are organizing a third conference, “Rethinking Macro Policy III: Progress or Confusion?” that will take place on April 15-16 at the IMF.
Filed under: Advanced Economies, Economic Crisis, Economic outlook, Economic research, Emerging Markets, Financial Crisis, Fiscal policy, Globalization, growth, IMF, International Monetary Fund, Investment, Multilateral Cooperation | Tagged: capital inflows, central banks, exchange rate, financial system, fiscal policy, IMF Annual Research Conference, macroeconomic policy, macroprudential policy, monetary policy, Olivier Blanchard | Leave a comment »
Posted on April 1, 2015 by iMFdirect
By Changyong Rhee
(Versions in 日本語)
Abenomics can succeed, despite recent setbacks to growth and inflation, in revitalizing Japan by making steadfast progress on all three of its arrows equally and simultaneously, as we show in our new book. This is also essential to avoid an undue weakening of the yen and ensure positive spillovers to Japan’s neighbors, its region, and the global economy.
The Legacy: Structural Changes During the Lost Decades
Most Japan followers will be familiar with the following striking statistic: in 2013, Japan’s level of nominal GDP was about 6 percent below its mid 1990s level. During this period, three important structural changes have been a brake on growth and efforts to get out of deflation: Continue reading
Filed under: Advanced Economies, Asia, Economic research, Employment, Financial Crisis, Fiscal policy, growth, IMF, International Monetary Fund, Investment, Reform | Tagged: Abenomics, Bank of Japan, deflation, deleveraging, inflation, investment, Japan, labor market, small and medium-sized enterprises, structural changes, structural reform, subsidiaries | Leave a comment »
Posted on March 31, 2015 by iMFdirect
By Yan Liu, Kenneth Kang, Dermot Monaghan, and Wolfgang Bergthaler
Six years after the global financial crisis, Europe continues to be weighed down by high levels of corporate debt and millions of nonperforming loans. Small and medium-sized enterprises (SMEs) bear a disproportionately heavy burden. Their nonperforming loan ratios are on average more than double those of their larger corporate cousins. This is worrisome. SMEs are the lifeblood of the European economy, comprising 99 percent of all businesses and employing nearly two of every three workers in Europe. Given the importance of smaller businesses to the economy, addressing their problem loans could lay the foundation for a more robust and sustainable economic recovery.
Filed under: Advanced Economies, Economic Crisis, Economic research, Europe, Financial Crisis, Fiscal policy, Government, growth, IMF, International Monetary Fund, Investment, Reform | Tagged: Cyprus, euro zone, Europe, European Central Bank, Greece, Ireland, non-performing loans, nonperforming loans, small and medium-sized enterprises | Leave a comment »
Posted on March 30, 2015 by iMFdirect
By Era Dabla-Norris, Vikram Haksar, and Kalpana Kochhar
Global growth remains anemic more than five years after the global financial crisis. If nothing is done, the prospect of settling into a “new mediocre” will become reality, especially in advanced economies.
In many advanced economies, accommodative monetary policies, growth-friendly fiscal frameworks, and efforts to tackle private debt overhang and improve tax revenues and compliance are essential to lift economic growth in the short term.
Filed under: Advanced Economies, Employment, Europe, Financial Crisis, growth, IMF, International Monetary Fund, Investment, Reform | Tagged: advanced economies, balance sheets, France, infrastructure, Italy, Japan, jobs, labor force, monetary policy, Portugal, reforms, women | Leave a comment »
Posted on March 27, 2015 by iMFdirect
By Vitor Gaspar
One of the big questions to emerge from the global financial crisis, especially in the euro area, is how to raise a country’s potential growth while restoring healthy public finances. For example, the euro area— despite some favorable news recently — faces marked-down growth prospects alongside high levels of public debt. The combination of high debt and tepid potential growth underscores the importance of improving prospects for sustained growth and safe and resilient public finances. A fundamental question then arises: what is the relation between fiscal consolidation and structural reform?
Filed under: Advanced Economies, Economic Crisis, Economic outlook, Economic research, Employment, Europe, Financial Crisis, Fiscal policy, growth, IMF, International Monetary Fund, Investment, Public debt, Reform | Tagged: euro area, Fiscal Monitor, fiscal policy, Germany, labor market, risk management, structural reform, Sweden, youth | Leave a comment »
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 »