Posted on November 29, 2016 by iMFdirect
By Philip Gerson and Johannes Wiegand
For an economist interested in examining the evolution of monetary and exchange rate regimes, Central, Eastern and Southeastern Europe (CESEE) provides a habitat of unparalleled diversity. Almost every type of regime can be found in the region: from floating and inflation targeting over various pegs to the unilateral use of the euro and full euro area membership.
Filed under: deflation, Economic research, euro zone, Europe, exchange rates, Fiscal policy, IMF, inflation, International Monetary Fund, structural reforms | Tagged: Central Europe, CESEE, deflation, Europe, eurozone, exchange rate flexibility, exchange rate regimes, exchange rates, fiscal policy, inflation, monetary policy, Southeastern Europe, structural policy | Leave a comment »
Posted on September 28, 2016 by iMFdirect
By Vitor Gaspar, Maurice Obstfeld and Ratna Sahay
There are policy options to bring new life into anemic economic recoveries and to counteract renewed slowdowns. Our new paper, along with our co-authors, debunks widespread concerns that little can be done by policymakers facing a vicious cycle of (too) low growth, (too) low inflation, near-zero interest rates, and high debt levels.
Filed under: capital markets, Economic research, Fiscal policy, Government, IMF, International Monetary Fund, monetary policy, Reform | Tagged: Christine Lagarde, collective action, economic recovery, fiscal policy, G20, growth, IMF, iMFdirect, inflation, interest rates, International Monetary Fund, Maurice Obstfeld, monetary policy, public debt, Ratna Sahay, Vitor Gaspar | 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 May 11, 2016 by iMFdirect
By Yan Carrière-Swallow and Bertrand Gruss
(Versions in Español and Português)
Falling global commodity prices and the normalization of monetary policy in the United States have contributed to widespread currency depreciations in Latin America. In theory, a falling currency is expected to create inflation by driving up the price of imported goods and services—triggering what economists call exchange rate pass-through.
Filed under: Advanced Economies, banking, inflation, International Monetary Fund, Latin America | Tagged: advanced economies, central banks, Diálogo a Fondo, exchange rate pass-through, exchange rate regimes, IMF, inflation, inflation targeting, infrastructure, International Monetary Fund, Latin America, monetary policy, wages | Leave a comment »
Posted on March 10, 2016 by iMFdirect
By Rahul Anand and Paul Cashin
After being low for decades, inflation in India trended higher from the mid-2000s. It reached 10–11 percent by 2008, and remained elevated at double digits for several years. Even though inflation fell by almost half in 2014, inflation expectations have remained high.
High and persistent inflation in recent years has presented serious macroeconomic challenges in India, increasing the country’s domestic and external vulnerabilities. As Reserve Bank of India Governor Raghuram Rajan pointed out at the 8th R.N. Kao Memorial Lecture in 2014, “inflation is a destructive disease … we can’t push inflation under the carpet as a central banker. We have to deal with it.”
Filed under: Asia, Emerging Markets, IMF, Inequality, inflation, International Monetary Fund, LICs | Tagged: demand, food prices, food supply, growth, households, IMF, India, inequality, inflation, International Monetary Fund, Reserve Bank of India | Leave a comment »
Posted on February 25, 2016 by iMFdirect
By 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.
Filed under: Africa, China, Employment, Fiscal policy, Government, growth, IMF, International Monetary Fund | Tagged: demographics, El Nino, employment, Finance & Development magazine, fiscal policy, inflation, oil prices, population aging, Sub-Saharan Africa, wages, women | Leave a comment »
Posted on October 5, 2015 by iMFdirect
By Changyong Rhee
(Version in 中文 and Español)
From advanced economy financial markets to developing country commodity producers, the world has closely followed developments in China in recent months. After 35 years of extraordinarily rapid growth, the Chinese economy is undergoing a major transition from export-led growth to a model increasingly driven by consumption and services, with less emphasis on debt-financed public investment.
Filed under: Asia, Economic outlook, Emerging Markets, Financial Crisis, Fiscal policy, growth, IMF, International Monetary Fund | Tagged: China, economic transition, financial sector, growth, IMF, inflation | Leave a comment »