Posted on April 26, 2016 by iMFdirect
By James Daniel, José Garrido, and Marina Moretti
Version in 中文 (Chinese)
China’s high and rising corporate debt problem and how best to address it has received much attention recently. Indeed, corporate debt in China has risen to about 160 percent of GDP, which is very high compared to other, especially developing, countries.
The IMF’s April 2016 Global Financial Stability Report looked at the issue from the viewpoint of commercial banks and resulting vulnerabilities. Its analysis suggests that the share of commercial banks’ loans to corporates that could potentially be at risk has been rising fast and, although currently at a manageable level, needs to be addressed with urgency in order to avoid serious problems down the road. Indeed the success in addressing this issue is important for China’s economic transition and, given its size and growing global integration, the world’s economy at large.
Filed under: China, developing countries, Economic research, Finance, IMF, International Monetary Fund, unemployment | Tagged: bank credit, capital, China, credit, debt restructuring, developing countries, IMF, International Monetary Fund, Labor, nonperforming loans, NPLs, structural reform | Comments Off on Tackling China’s Debt Problem: Can Debt-Equity Conversions Help?
Posted on April 7, 2016 by iMFdirect
By Carla Grasso
Versions in: عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Português (Portuguese), Русский (Russian), and Español (Spanish)
If there’s one thing all economists can agree on, it’s the importance of numbers. Without good data, it is difficult to assess how an economy is performing and formulate smart policies that help improve lives. Continue reading
Filed under: Africa, IMF, International Monetary Fund, technology | Tagged: Africa, capacity building, Cape Verde, East Africa, IMF, iMFdirect, International Monetary Fund, Mauritius, Mozambique, senegal, Seychelles, Sub-Saharan Africa, Tanzania, technical assistance | Leave a comment »
Posted on March 31, 2016 by iMFdirect
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
Filed under: Fiscal, Fiscal policy, IMF, International Monetary Fund, technology | Tagged: Australia, Belgium, Chile, entrepreneurs, Fiscal Monitor, fiscal policy, France, IMF, iMFdirect, International Monetary Fund, jobs, Keynes, Korea, Netherlands, productivity growth, R&D, Shumpeter, Spain, tax policy | 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 March 7, 2016 by iMFdirect
By Christine Lagarde
(Versions in عربي, 中文, Español, Français, 日本語, Русский, Deutsch, and Italiano)
International Women’s Day—March 8—is one of my favorite days. It is a time to celebrate the impressive progress women at all levels of the career ladder have made in recent decades. More women in the labor force, and in more senior positions is good news for women, for their companies, and for their countries’ economies.
A new IMF staff study finds that in Europe, national policies, even taking account of personal preferences, can boost women’s participation in the workforce and enhance their chances for advancement.
Filed under: Employment, Gender issues, growth, IMF, Inequality, International Monetary Fund, technology | Tagged: asset returns, Christine Lagarde, corporate ladder, corporate sector, eastern Europe, Europe, gender wage gap, IMF, International Monetary Fund, International Women's Day, labor force, policy, women | Leave a comment »
Posted on March 3, 2016 by iMFdirect
By Jihad Dagher, Giovanni Dell’Ariccia, Luc Laeven, Lev Ratnovski, and Hui Tong
The appropriate level of bank capital and, more generally, a bank’s capacity to absorb losses, has been a contentious subject of discussion since the financial crisis. Larger buffers give bankers “skin in the game” helping to prevent excessive risk taking and absorb losses during crises. But, some argue, they might increase the cost of financial intermediation and slow economic growth.
Filed under: banking, Europe, Finance, Financial Crisis, International Monetary Fund, U.S. | Tagged: advanced economies, bank capital, bank credit, bank recapitalization, banking, capital buffers, capital flows, Europe, IMF, International Monetary Fund, nonperforming loans, United States | Leave a comment »