Imagine What Fiscal Policy Could Do For Innovation


By Vitor Gaspar and Ruud De Mooij

Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), Español (Spanish)

Imagine how three-dimensional printing, driverless cars and artificial intelligence will change our future. Or think of how developments in information technology, e-commerce and the sharing economy are already changing the way we learn, work, shop, and travel. Innovation drives progress and, in economic terms, determines productivity growth. And productivity growth, in turn, determines prosperity. It impacts our lives and well-being in fundamental ways: it determines where and how long we live; it determines our quality of life. Continue reading

The Case for Reforming the Price of Water


David Lipton2012By David Lipton

Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

One of the first things most students of economics learn is the diamond and water paradox. How can it be that water is free even though life cannot exist without it, while diamonds are expensive although no one dies for lack of diamonds?

The answer is that water can be free if its supply is abundant relative to demand. Nevertheless, it is abundantly clear that worldwide, the demand for water outpaces supply. This imbalance is the clearest sign that water is underpriced. Yet, many governments are reluctant to price water like other goods.

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Japan: Time to Load a Fourth Arrow—Wage Increases


By Luc Everaert and Giovanni Ganelli

(Version in 日本語)

Everybody agrees: wages need to grow if Japan is to make a definite escape from deflation. Full- time wages have increased by a mere 0.3 percent since 1995! For example, despite its record profits, Toyota increased its base salary only by 1.1 percent last year. The average of 219 Keidanren firms managed just 0.44 percent. Clearly, an increase in base wages, colloquially referred to as “base up”, is long overdue.

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Population Pressures


Jeff HaydenBy Jeff Hayden

(Versions in عربي and Español)

Say “population growth” and many people immediately think of resources under stress. The mind jumps to 19th century scholar Thomas Malthus, who saw population outstripping the food supply, or to Paul Ehrlich, whose 1968 book The Population Bomb warned of global catastrophe from overpopulation.

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Oil Low-Commotion


By iMFdirect

Brent crude oil fell below $30 a barrel yesterday for the first time since 2004, which reminds us that commodity prices are a hot topic that impact everyone, everywhere, one way or another.

So we thought you might like to read a few of our recent blogs about what the !@#$% is going on, and why it matters for the global economy. Continue reading

Climate Change: How To Price Paris


by Vitor Gaspar, Michael Keen, and Ian Parry

(Versions in عربي中文Español, and Français)

The Paris Agreement on Climate Change is a historic diplomatic achievement. Climate change is a global problem. Many believed that global problem solving would prove elusive: the benefits of cutting emissions arise globally while the costs of doing so are borne nationally, so national self-interest would prevent a meaningful agreement. Paris proves otherwise—creating a commonality of purpose at the global level.  Continue reading

It’s Getting Hot in Here: Climate Change


by iMFdirect

World leaders are meeting in Paris to forge a new climate deal.  We interviewed two  leading thinkers on climate, Nick Stern and Christiana Figueres.

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