Posted on May 23, 2011 by iMFdirect
By Masood Ahmed
Most policymakers in the Middle East and North Africa agree that stronger economic growth is a crucial component of any strategy to address the region’s persistently high levels of unemployment and raise its living standards. One question that arises is: What role can the financial sector play?
It is well known that a dynamic and vibrant financial sector will improve economic outcomes for a country, leading to faster and more equitable economic growth. The key to answering this question, therefore, is to look to the past and examine how the financial sector has contributed historically to growth in the region. Continue reading
Filed under: Economic outlook, Employment, growth, IMF, International Monetary Fund, Middle East | Tagged: bank credit, bank intermediation, banking competition, banking sector, credit information, economic growth, equity, financial depth, financial sector, financial services, financial shallowness, macroeconomic stability, Regional Economic Outlook: Middle East and North Africa, stock market, unemployment | 7 Comments »
Posted on April 13, 2011 by iMFdirect
By José Viñals
In various guises, the “Year of Living Dangerously” has been used to describe the global financial crisis, the policy response to the crisis, and its aftermath.
But, we’ve slipped well beyond a year and the financial system is still flirting with danger. Durable financial stability has, so far, proven elusive.
Financial stability risks may have eased, reflecting improvements in the economic outlook and continuing accommodative policies. But those supportive policies—while necessary to restart the economy—have also masked serious, underlying financial vulnerabilities that need to be addressed as quickly as possible. Continue reading
Filed under: Advanced Economies, Emerging Markets, Financial Crisis, Financial regulation, Financial sector supervision, International Monetary Fund | Tagged: asset quality, balance sheets, bank credit, bank restructuring, banking system, capital buffers, capital controls, capital inflows, debt sustainability, financial imbalances, financial sector risk, financial stability, global financial crisis, Global Financial Stability Report, government debt, household indebtedness, macroprudential policies, medium-term fiscal consolidation, overheating, sovereign funding | 5 Comments »
Posted on April 2, 2011 by iMFdirect
There has been plenty of reflection, during the past few years, on the causes of the global financial crisis. But, last month’s conference at the IMF focused on taking what we’ve learned from the crisis and looking toward the future of economic policy.
Robert Solow—Professor Emeritus at Massachusetts Institute of Technology and Nobel Prize winning economist—was among those who brought interesting perspectives and a wealth of experience to the conference discussions.
Watch Professor Solow’s interview and hear more about what he has to say on… Continue reading
Filed under: Economic Crisis, Economic research, International Monetary Fund | Tagged: bank credit, economic growth, education, fiscal policy, global economic crisis, global financial crisis, macroeconomic policy, monetary policy, Nobel Prize, public debt, Robert Solow | Leave a comment »
Posted on December 7, 2010 by iMFdirect
By Masood Ahmed
(Version in عربي )
Bank credit has been very slow to pickup in the six nations of the Gulf Cooperation Council (GCC). How big a problem is this for their economic recovery?
Sluggish credit growth in the post-crisis period was hardly a unique development, as indicated in our latest Regional Economic Outlook. More than a dozen countries in the Middle East and Central Asia region, and countless more outside the region, shared this experience. But while there are clearer signs of recovery in some countries, credit to the private sector is still barely growing in the GCC, notwithstanding policy efforts to revive it.
It might seem easy to ring the alarm bells. After all, won’t the prospect of weak credit growth restrain economic activity in the short-term? Perhaps. But we believe the negative impact of credit growth may not be quite so severe.
Why not? In part, that answer lies in how we arrived at the current situation. Continue reading
Filed under: Economic Crisis, Economic outlook, Middle East, عربي | Tagged: Bahrain, bank credit, capital adequacy, credit growth, credit risk, credit to the private sector, global crisis, Gulf Cooperation Council, Kuwait, Oman, Qatar, Regional Economic Outlook: Middle East and Central Asia, Saudi Arabia, U.A.E | 1 Comment »
Posted on October 20, 2010 by iMFdirect
By Ajai Chopra
Almost unnoticed, amid the difficulties in western Europe, the other half of the continent has begun to recover from the deepest slump in its post-transition period. The emerging economies in central and eastern Europe will grow by 3¾ percent this year and next—a relief after the 6 percent decline in 2009.
Why was the crisis so severe—and how do we avoid a repeat? We consider just that question in our fall 2010 Regional Economic Outlook: Europe. While the crisis was triggered by external shocks, it is clear that domestic imbalances and policies also played a key role. Continue reading
Filed under: Economic Crisis, Emerging Markets, Europe, Financial Crisis, International Monetary Fund | Tagged: asset price bubbles, balance sheets, bank credit, boom-bust cycle, capital inflows, cooperation, credit boom, economic imbalances, economic rebalancing, emerging Europe, fiscal policy, fixed exchange rates, prudential regulation, regional economic outlook, Regional Economic Outlook: Europe | 12 Comments »