Posted on August 17, 2016 by iMFdirect
By Shekhar Aiyar, Christian Ebeke, and Xiaobo Shao
Versions in Français (French), and Español (Spanish)
In parallel to the aging of the general population, the workforce in the euro area is also growing older. This could cause productivity growth to decline in the years ahead, raising another policy challenge for governments already dealing with legacies from the crisis such as high unemployment and debt. Continue reading
Filed under: Advanced Economies, aging, Employment, euro zone, Europe, growth, health, IMF, International Monetary Fund, labor force | Tagged: aging, employment, euro area, Euro Area countries, Europe, health, IMF, International Monetary Fund, labor force, productivity, retirees, training, unemployment, United Kingdom, United States, workers | Leave a comment »
Posted on August 16, 2016 by iMFdirect
We have a global economy, but we don’t have a global currency. Or do we?
In this podcast interview with Benjamin Cohen, professor of International Political Economy at the University of California, Cohen explains why currencies become internationalized, and examines the relationship between world currencies and State power. Continue reading
Filed under: Advanced Economies, developing countries, euro zone, Europe, Finance, IMF, International Monetary Fund | Tagged: Benjamin Cohen, China, currency, currency internationalization, International Monetary Fund, sovereignty, state power, U.S. dollar, yuan | Leave a comment »
Posted on July 26, 2016 by iMFdirect
By Yasser Abdih
There was a time when U.S. central bankers worried that inflation was too high, and they tried to bring it down. Now the opposite is true: the Federal Reserve is concerned that inflation has remained stubbornly low, and it’s trying to boost prices. The reason: persistently low inflation raises the risk that prices will actually start to decline, a dangerous condition known as deflation. That’s bad news because it makes people less willing to borrow and spend—anticipating lower prices, consumers will put off spending—and could also lead to a fall in wages. Continue reading
Filed under: Advanced Economies, inflation, International Monetary Fund, U.S. | Tagged: borrowing, Canada, China, core inflation, deflation, exports, Federal Reserve, IMF, inflation, Mexico, Philips Curve, spending, U.S., United States | Leave a comment »
Posted on July 25, 2016 by iMFdirect
By David Lipton
Versions in عربي (Arabic), Español (Spanish)
Almost a decade after the start of the global financial crisis, the world economy is still trying to achieve escape velocity. The IMF’s recent forecast for global growth is a disappointing 3.1 percent in 2016 and 3.4 percent in 2017. And the outlook remains clouded by increased economic and political uncertainty, including from the impact of the Brexit vote.
Policymakers have taken forceful macroeconomic policy action to support growth, such as fiscal stimulus and appropriately accommodative monetary policy. But a lasting recovery remains elusive. Continue reading
Filed under: Advanced Economies, Financial Crisis, Fiscal policy, G-20, International Monetary Fund | Tagged: Brazil, business cycle, competition, foreign direct investment, IMF, India, Indonesia, International Monetary Fund, macroeconomic policy, monetary policy, structural reforms, trade | Leave a comment »
Posted on July 21, 2016 by iMFdirect
Once again, we face the prospect of weak and fragile global growth. Released earlier this week, the IMF’s update to the global economic outlook expects global growth at 3.1 percent and 3.4 percent in 2016 and 2017, respectively, slightly down from April estimates. The global outlook, which was set for a small upward revision prior to the U.K.’s referendum, has been revised downward, reflecting the increased economic, political, and institutional uncertainty. Continue reading
Filed under: Advanced Economies, Europe, G-20, Government, International Monetary Fund, Multilateral Cooperation | Tagged: Brexit, China, growth, IMF, risk, trade | Leave a comment »
Posted on July 20, 2016 by iMFdirect
(Versions in: Bulgarian, Czech, Estonian, Hungarian, Latvian, Lithuanian, Polish, Romanian, Russian, Serbian, and Slovenian)
The opening up of Eastern Europe to the rest of the world in the early 1990s brought about tremendous benefits. The inflow of capital and innovation has led to better institutions, better economic management, and higher efficiency. On the flip side, it has also led to sizable and persistent outflow of people.
Filed under: Advanced Economies, Economic research, Employment, euro zone, Europe, growth, income, Inequality, International Monetary Fund, Migration, refugees, unemployment | Tagged: advanced economies, Bulgaria, Czech Republic, East-West migration, eastern Europe, emigration, employment, Estonia, Europe, European Union, GDP, growth, Hungary, IMF, iMFdirect, International Monetary Fund, jobs, labor force, Latvia, Lithuania, pan-European, Romania, Russia, Slovakia, Slovenia | Leave a comment »
Posted on July 19, 2016 by iMFdirect
By Maurice Obstfeld
Versions in عربي (Arabic), 中文 (Chinese), Français (French), and Español (Spanish)
The United Kingdom’s June 23 vote to leave the European Union adds downward pressure to the world economy at a time when growth has been slow amid an array of remaining downside risks. The first half of 2016 revealed some promising signs—for example, stronger than expected growth in the euro area and Japan, as well as a partial recovery in commodity prices that helped several emerging and developing economies. As of June 22, we were therefore prepared to upgrade our 2016-17 global growth projections slightly. But Brexit has thrown a spanner in the works.
Filed under: Advanced Economies, Economic outlook, Economic research, Europe, International Monetary Fund | Tagged: bank balance sheets, Brexit, China, debt overhang, financial, financial markets, geopolitical risks, growth, IMF, investment, Japan, Nigeria, Policy Action, refugees, South Africa, trade, unemployment, United Kingdom, World Economic Outlook | Leave a comment »