Posted on September 14, 2011 by iMFdirect
By Jeremy Clift
We used to think that overall economic growth would pull everyone up. While the rich might be getting richer, everyone would benefit and would see higher living standards. That was the unspoken bargain of the market system.
But now research is showing that, in many countries, inequality is on the rise and the gap between the rich and the poor is widening, particularly over the past quarter-century.
With taxpayers footing the bill for troubles in the financial industry in advanced economies during the global economic crisis, this discrepancy seems particularly galling to wage-earners who have seen their pay stagnate or worse. Inequality has started to attract more research by economists.
The September 2011 issue of Finance & Development (F&D) looks at income inequality around the world and how it matters. (more…)
Filed under: IMF, Inequality, International Monetary Fund | Tagged: Andrew Berg, bank bailouts, Branko Milanovic, economic growth, Finance & Development magazine, global economic crisis, income inequality, inequality, Jonathan Ostry, Paul Krugman, Prakash Loungani, rich and poor, unemployment | 3 Comments »
Posted on April 5, 2011 by iMFdirect
Open, wide-ranging, and balanced discussion. For Olivier Blanchard—and co-hosts David Romer, Michael Spence & Joseph Stiglitz—that was the goal of last month’s conference at the IMF on the future of macroeconomic policies after the global financial crisis. And it is exactly what they got.
The crisis was a wakeup call for theorists and policymakers… Economic models, policy tools, and how they are applied need to catch up with changes in the global economic and financial system.
You’ve heard here about views from the conference, but there’s plenty of discussion going on outside the IMF. Here’s a snapshot…. (more…)
Filed under: Economic research, International Monetary Fund | Tagged: Anders Aslund, David H. Romer, Financial regulation, financial sector risk, global financial crisis, high-frequent trading, Joseph E. Stiglitz, macroeconomic models, Macroeconomic policies, Mark Thoma, Matthew Yglesias, Michael Spence, Olivier Blanchard, Paul Krugman, Perry Mehrling, policy tools, Robert Solow, unemployment | 2 Comments »
Posted on January 21, 2010 by iMFdirect
By Marek Belka
(Version in ελληνικά)
What a difference a year makes. January 2009 marked 10 years since the introduction of the euro. That anniversary fell in the midst of the worst global financial crisis in the past half century.
The euro—and the European Central Bank—proved important safeguards against the spread of the crisis. Countries whose currencies would likely have been subject to severe market gyrations had they not been part of the eurozone held their ground. And the ECB used innovative approaches, along with central banks around the world, to help provide liquidity and calm markets.
But as the crisis progressed, it became clear that the eurozone countries were affected in very different ways.
Markets took notice and the premia charged on sovereign bonds diverged. This month, as the euro turns 11 and even as the crisis is receding and an economic recovery is underway, prominent commentators—including Martin Wolf and Paul Krugman—are concerned that the strains within the eurozone are serious, and will need serious attention.
Filed under: Economic Crisis, Europe, Financial Crisis, Financial regulation | Tagged: Ashoka Mody, Edda Zoli, European Central Bank, eurozone, Financial Stability framework, Ireland, Labor, Paul Krugman, SGP. Martin Wolf, Silvia Sgherri, Spain, the euro | Leave a Comment »