Posted on March 13, 2017 by iMFdirect
By Angana Banerji, Era Dabla-Norris, Romain Duval, and Davide Furceri
Versions in 中文 (Chinese), Français (French),Deutsch (German), Русский (Russian), and Español (Spanish)
Many advanced countries need structural reforms to make their economies more productive and raise long-term living standards. Our new research shows that provided countries can afford it, fiscal policy, through spending or tax incentives, can help governments overcome some obstacles to the reforms, particularly in the early stages. Continue reading
Filed under: Advanced Economies, Fiscal policy, International Monetary Fund, labor markets, structural reforms | Tagged: An Optimist’s Guide to Thriving in the Age of Accelerations, corporate taxes, debt, deregulation, employment, Finland, fiscal policy, GDP, Germany, growth, Ireland, jobs, labor market reforms, product market reforms, productivity, spending, tax incentives, tax revenues, the Netherlands, United Kingdom | Leave a comment »
Posted on January 9, 2017 by iMFdirect
By Adrian Alter and Selim Elekdag
Versions in عربي (Arabic), and Español (Spanish)
In December 2016, the U.S. Fed raised interest rates for the first time in a year, and said they planned more increases in 2017. Emerging market currencies took a bit of a dive, but overall investors didn’t overreact and run for the doors with their money. For the bigger picture, you can read IMF Chief Economist Maurice Obstfeld’s blog that outlines how the U.S. election and Fed decision will impact the global economy. Continue reading
Filed under: Emerging Markets, International Monetary Fund, monetary policy | Tagged: China, construction, corporate debt, debt, emerging markets, Latin America, Maurice Obstfeld, United States | Leave a comment »
Posted on December 12, 2016 by iMFdirect
By Maurice Obstfeld and Poul M. Thomsen
Versions in عربي (Arabic); Français (French); Deutsch (German); ελληνικά (Greek); and Español (Spanish)
Greece is once again in the headlines as discussions for the second review of its European Stability Mechanism (ESM) program are gaining pace. Unfortunately, the discussions have also spurred some misinformation about the role and the views of the IMF. Above all, the IMF is being criticized for demanding more fiscal austerity, in particular for making this a condition for urgently needed debt relief. This is not true, and clarifications are in order. Continue reading
Filed under: Debt Relief, Europe, Fiscal policy, Greece, IMF, International Monetary Fund | Tagged: austerity, debt, debt relief, debt sustainability, ESM, euro zone, Europe, European Stability Mechanism, financial stability, fiscal policy, GDP, Greece, IMF, iMFdirect blog, International Monetary Fund | Leave a comment »
Posted on November 10, 2016 by iMFdirect
By Ruud de Mooij, Michael Keen, and Alexander Tieman
“The Great Distortion.” That’s what The Economist, in its cover story of May 2015¸ called the systematic tax advantage of debt over equity that is found in almost every tax system.
This “debt bias” is now widely recognized as a real risk to economic stability. A new IMF study argues that it needs to feature more prominently on tax reform agendas; it also sets out options for how to do that.
Filed under: Economic research, Finance, Fiscal policy, IMF, International Monetary Fund, Public debt, taxation | Tagged: allowance for corporate equity (ACE), debt, debt financing, equity, European Commission, European Union, finance, fiscal policy, IMF, iMFdirect blog, International Monetary Fund, taxation | Leave a comment »
Posted on April 13, 2016 by iMFdirect
By José Viñals
Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)
Over the last six months, global financial stability risks increased as a result of the following developments:
- First, macroeconomic risks have risen, reflecting a weaker and more uncertain outlook for growth and inflation, and more subdued sentiment. These risks were highlighted yesterday at the World Economic Outlook press conference.
- Second, falling commodity prices and concerns about China’s economy have put pressure on emerging markets and advanced economy credit markets.
- Finally, confidence in policy traction has slipped, amid concerns about the ability of overburdened monetary policies to offset the impact of higher economic and political risks.
Filed under: Advanced Economies, banking, euro zone, Europe, Finance, Financial markets, IMF, International Monetary Fund, oil, U.S. | Tagged: banking, banks, China, corporate sector, debt, emerging market economies, euro area, Europe, Global Financial Stability Report, monetary policy, non-performing loans, NPLs, structural reforms | Leave a comment »