Posted on September 20, 2011 by iMFdirect
By Olivier Blanchard
(Versions in عربي, Français, Español and Русский)
The global economy has entered a dangerous new phase. The recovery has weakened considerably, and downside risks have increased sharply. Strong policies are urgently needed to improve the outlook and reduce risks.
Growth, which had been strong in 2010, decreased in 2011. We had forecast some slowdown, due mainly to fiscal consolidation. One-time events, such as the tragic earthquake in Japan, offered plausible explanations for a further slowdown. The initial U.S. data also understated the size of the slowdown. Now that the numbers are in, it is clear that more was going on. (more…)
Filed under: Advanced Economies, Economic outlook, Economic research, Emerging Markets, IMF, International Monetary Fund, Low-income countries | Tagged: bank balance sheets, bank capital, bank lending, current account deficits, current accout surpluses, downside risks, economic forecasts, economic rebalancing, external rebalancing, financial volatility, fiscal consolidation, IMF, iMFdirect, International Monetary Fund, low growth, medium-term fiscal consolidation, Olivier Blanchard, private demand, public debt, public deficits, sovereign bonds, weak balance sheets, World Economic Outlook, world growth | 14 Comments »
Posted on January 25, 2011 by iMFdirect
By José Viñals
(Version in Español | 中文 | Français | 日本語 | Русский | عربي )
This morning, I presented our latest views on global financial stability in Johannesburg, South Africa.
So, where does the global financial system stand at the moment? Yes, we have witnessed improvements recently, but we are also observing a dichotomy between the economy and the financial system. While the global economic recovery has been continuing, financial stability is still at risk, because of a persistent lack of investor confidence in some advanced country sovereigns and their banking systems.
At this cross-roads, we see three key messages. (more…)
Filed under: Economic Crisis, Financial Crisis, Financial regulation, Financial sector supervision, International Monetary Fund | Tagged: bank capital, bank funding, banking systems, capital flows, credit risks, European Financial Stability Facility, financial crisis, financial stability, financial supervision, fiscal consolidation, Global Financial Stability Report, prudential regulation, public debt, sovereign risk | 2 Comments »