Posted on June 29, 2011 by iMFdirect
The IMF has a new managing director, Christine Lagarde, France’s (now) former finance minister, to head the global lender as the world’s economy slowly recovers.
Lagarde will hit the ground running on July 5, and faces a very full inbox.
“The IMF has a lot on its plate and faces an uneven world recovery, the reopening of global imbalances, potentially destabilizing capital flows, high level of unemployment, rising inflation, and difficult country cases,” said Lagarde in her interview for the job with the IMF’s 24-member Executive Board on June 22. Continue reading
Filed under: Economic Crisis, Financial Crisis, IMF, International Monetary Fund, Public debt | Tagged: Christine Lagarde, global eocnomic crisis, IMF, International Monetary Fund | 12 Comments »
Posted on June 27, 2011 by iMFdirect
By Jody Myers
(Version in Français)
Drug traffickers, diamond smugglers, and terrorists’ financiers around the world have one thing in common: they abuse the financial system to “clean” the proceeds they have obtained from their illegal work, or to transfer funds to achieve their destructive aims. The former is known as money laundering and the latter as terrorist financing.
In the United States alone, profits from these crimes are estimated around $275 billion, excluding tax evasion.
Our research shows this dark side of the economy has destructive consequences for a country’s financial stability, economy, and governance. Continue reading
Filed under: Advanced Economies, Economic Crisis, Emerging Markets, Europe, Financial Crisis, International Monetary Fund | Tagged: Article IV, banks, corruption, Financial Action Task Force, financial institutions, Financial Sector Assessment Program, government revenues, inflation, insider trading, International Monetary Fund, money laundering, purchasing power, risk, tax evasion, terrorist financing, United States | 4 Comments »
Posted on June 21, 2011 by iMFdirect
By Carlo Cottarelli
عربي, 中文, Español, Français, Português, Русский)
In São Paulo, Brazil last Friday we launched our latest assessment of the state of government finances, debts, and deficits. While many countries are slogging through a tough fiscal time, there is some good news, including in the United States where the deficit will be lower this year than previously expected. I will also give you an assessment of how the new information affects our sense of what needs to be done in the future.
Let me start by talking about the advanced economies where, as is well known, the fiscal accounts are generally weaker, reflecting large increases in deficits and debt ratios since the start of the crisis in 2008. Continue reading
Filed under: Advanced Economies, Asia, Economic Crisis, Emerging Markets, Employment, Europe, Fiscal policy, growth, IMF, Latin America, Low-income countries, Public debt | Tagged: Brazil, debt, deficits, Europe, Japan, public debt, São Paulo, United States | 1 Comment »
Posted on June 20, 2011 by iMFdirect
By José Viñals
(Versions in عربي, 中文, Español, Français, Русский)
It was fitting that I should present our latest assessment of global financial stability in Sao Paulo, the financial center of one of the leading emerging economies. In common with many of its peers in Latin America, Brazil is recovering strongly from the crisis. But new financial stability challenges are emerging in this, and other fast-growing regions.
Let me start with three key messages:
- First, financial risks have increased since April.
- Second, as a result, policymakers in both advanced and emerging economies need to step up their efforts to preserve financial stability and safeguard the recovery.
- And third, we have entered into a new phase of the crisis – a political phase– when tough political decisions will need to be made, because the window for substantial policy action is closing. Time is of the essence. Continue reading
Filed under: Advanced Economies, Emerging Markets, Europe, Financial Crisis, Financial regulation, IMF | Tagged: Brazil, capital flows, debt, emerging economies, Europe, financial policies, financial risks, Global Financial Stability Report, inflation, intereste rates, Japan, Latin America, macropurdential, policymakers, sovereign risk, stress tests, United States | 5 Comments »
Posted on June 17, 2011 by iMFdirect
By Olivier Blanchard
عربي, 中文, Español, Français, Português, Русский)
Today we’re in Sao Paulo, Brazil, to release our update to the IMF’s World Economic Outlook.
Despite a mild slowdown, the global economic recovery continues but the road to health will be a long one. Downside risks, both old and new, are increasing.
Our world forecast is 4.3% growth for 2011, and 4.5% for 2012, so down by 0.1% for 2011, and unchanged for 2012, relative to April. This figure hides very different performances for advanced economies on the one hand, and for emerging and developing economies on the other. Continue reading
Filed under: Advanced Economies, Economic Crisis, Economic research, Emerging Markets, Employment, Europe, growth, IMF | Tagged: advanced economies, Asia, assets, banks, Brazil, capital flows, commodities, credit, crisis, debt, economy, emerging economies, Europe, financial system, fiscal, food prices, global recovery, government debt and deficits, growth, IMF, iMFdirect, income, inflation, International Monetary Fund, Japan, Latin America, monetary policy, oil prices, unemployment, United States, World Economic Outlook | 4 Comments »
Posted on June 6, 2011 by iMFdirect
By Masood Ahmed
Across the world, surging international food prices have become a major cause for concern and topic of debate. This is especially so in the Arab world, which is home to some of the largest food importers and where rising food prices have been one of the factors in recent political unrest.
In the context of ongoing political developments, governments across the region are responding to the rise in commodity prices with hikes in fuel and food subsidies, civil service wage and pension increases, additional cash transfers, tax reductions, and other spending increases. These measures will help poor households maintain their purchasing power and limit further increases in domestic food prices.
How should central banks—whose task is to prevent general price increases that would further cut into peoples’ incomes—react? What inflation metric should they target? Continue reading
Filed under: Economic Crisis, IMF, Inequality, Middle East | Tagged: central banks, consumption, economic policy, food, fuel, inflation, Middle East, monetary policy, North Africa, oil, poor | 6 Comments »
Posted on June 3, 2011 by iMFdirect
By Olivier Blanchard
(Version in Español)
Last week I travelled to Rio de Janeiro in Brazil to participate in a conference on managing capital flows. Organized jointly by the Brazilian authorities and the IMF, the conference brought together experts from both the demand and supply sides of the issue, including many with a wealth of hands-on experience.
The discussion was rich and informative. Clearly we still have a lot to learn about the optimal approach to managing capital flows, about the right policy tools, and the right combination of tools.
To start with two general, but important observations. Continue reading
Filed under: Emerging Markets, growth, IMF, Latin America | Tagged: capital account, capital controls, capital flows, Chile, China, emerging markets, foreign exchange, global crisis, Macroeconomic policies, research | 6 Comments »