Posted on September 8, 2014 by iMFdirect
By Era Dabla-Norris
Much of the debate on inequality focuses on its deleterious social and political effects and its impact on growth. But an equally important issue is what policies play a clear role in reducing income inequality.
The results of our new study suggest that improvements in education—even more than factors such as government expenditure or financial sector development—have contributed in an important way to reducing income inequality within countries.
Filed under: Advanced Economies, Economic research, Emerging Markets, Finance, Globalization, growth, Inequality, International Monetary Fund | Tagged: education, expenditure reform, income inequality, inequality, technology, United States | Leave a comment »
Posted on July 21, 2014 by iMFdirect
By Min Zhu
(Versions in 中文, Español)
Asia is set to be the powerhouse for growth in the next decade, just as it was in the last one. The size of its economy is expected to expand more rapidly than the other regions of the world, and its share in the world output is expected to rise from 30 percent to more than 40 percent in the coming decade. The structure of the economy is expected to continue to transform from a narrower manufacturing hub to a group of vibrant, diverse and large markets with a rising middle-class population.
The role of the financial sector is critical in the success of this seismic transformation. Let me explain by focusing on three areas:
Filed under: Asia, Emerging Markets, Employment, Finance, Financial Crisis, Financial regulation, Globalization, growth, IMF, Inequality, International Monetary Fund, Investment | Tagged: Asian financial crisis, bond markets, China, financial services, income inequality, India, Indonesia, Japan, Korea, Min Zhu, population aging | Leave a comment »
Posted on April 14, 2014 by iMFdirect
By IMFdirect editors
Socrates’ famous method to develop his students’ intellect was to question them relentlessly in an unending search for contradictions and the truth—or at the very least, a great quote.
The method was alive and well among the moderators, panelists and audiences of the IMF’s Spring Meetings seminars that took place alongside official discussions, where boosting high-quality growth, with a focus on the medium term, was at the top of the agenda. Our editors fanned out and found a couple of big themes kept coming up. Here are some of the highlights.
Lots of people are talking about what happens when the flood of easy money into emerging markets thanks to low interest rates in advanced economies like the United States slows even more than it has in the past year.
At a seminar on fiscal policy the discussion focused on the challenges facing policymakers as central banks slowly exit from unconventional monetary policy and interest rates begin rising.
A live poll of the audience found 63 percent said the global economy remains weak and unconventional monetary policies should remain in place.
Filed under: Advanced Economies, Africa, Annual Meetings, Asia, Economic outlook, Emerging Markets, Financial Crisis, Fiscal policy, Globalization, IMF, Inequality, International Monetary Fund, Politics, Public debt | Tagged: Chile, Christine Lagarde, emerging market, Federal Reserve, global economy, growth, income inequality, macroprudential policies, Olivier Blanchard, Oxfam, Program of Seminars, Reserve Bank of India, Spring Meetings, United Kingdom | 1 Comment »
Posted on March 19, 2014 by iMFdirect
By Sanjeev Gupta and Michael Keen
(Version in Español, Français, Русский, 中文 and 日本語)
These are difficult times for ministers of finance. Fiscal constraints are tight and raising economic growth a priority. At the same time, income inequality is on the rise, and so is public pressure for governments to do something about it through their tax and spending policies. What’s a minister to do? How can he or she meet these seemingly incompatible demands?
A new IMF paper provides some guidance. Governments, of course, will have their own equity objectives. What the paper aims to do is look at precisely how countries can achieve their distributional goals—whatever they are—at the least possible cost to (and maybe even increasing) economic efficiency. This can help achieve sustainable growth and, in many cases, lead to fiscal savings. An earlier study by IMF researchers found that on average, fiscal redistribution has been associated with higher growth, because it helps reduce inequality.
Filed under: Advanced Economies, Economic research, Employment, Fiscal policy, IMF, Inequality, International Monetary Fund | Tagged: developing economies, education, government spending, health, income distribution, income inequality, inequality, pension, property taxes, retirement, taxes | 1 Comment »
Posted on February 26, 2014 by iMFdirect
By Jonathan D. Ostry and Andrew Berg
(Version in Español, Français, Português, Русский, 中文)
Rising income inequality looms high on the global policy agenda, reflecting not only fears of its pernicious social and political effects, (including questions about the consistency of extreme inequality with democratic governance), but also the economic implications. While positive incentives are surely needed to reward work and innovation, excessive inequality is likely to undercut growth, for example by undermining access to health and education, causing investment-reducing political and economic instability, and thwarting the social consensus required to adjust in the face of major shocks.
Understandably, economists have been trying to understand better the links between rising inequality and the fragility of economic growth. Recent narratives include how inequality intensified the leverage and financial cycle, sowing the seeds of crisis; or how political-economy factors, especially the influence of the rich, allowed financial excess to balloon ahead of the crisis.
Filed under: Economic research, Employment, Financial Crisis, Financial regulation, Fiscal policy, growth, IMF, Inequality, International Monetary Fund | Tagged: education, income inequality, inequality, investment, research | 5 Comments »
Posted on September 23, 2013 by iMFdirect
(Versions in Español and عربي)
Hot off the press: a new study out today from our economists pointing to the striking economic benefits that could come from increased female participation in the work force.
IMF Chief Christine Lagarde, calling attention to the findings of the paper, “Women, Work, and the Economy,” made the case for policymakers to shift into high gear and give women equal opportunities to participate in the work force.
Filed under: Advanced Economies, Economic research, Emerging Markets, Employment, Globalization, IMF, Inequality, International Monetary Fund | Tagged: Christine Lagarde, employment, empowering women, income, income inequality, research, tax, women | 1 Comment »