Posted on December 15, 2013 by iMFdirect
By Olivier Blanchard, Jonathan D. Ostry, and Atish R. Ghosh
International policy coordination is like the Loch Ness monster: much discussed but rarely seen. Going back over the decades, and even further in history to the period between the Great Wars, coordination efforts have been episodic.
Coordination seems to occur spontaneously in turbulent periods, when the world faces the prospect of some calamitous outcome and the key players are seeking to avoid cascading negative spillovers. In quieter times, coordination is rarer—though not unheard of; the Louvre and Plaza accords are examples.
Today, policy coordination has resurfaced as a hot topic: while the worst of the global financial crisis is behind us, no one would claim that a return to “Great Moderation” is in the cards, and policymakers around the globe appear worried about policy transmissions across many dimensions.
Filed under: Employment, Finance, Financial Crisis, Fiscal policy, Globalization, growth, IMF, International Monetary Fund | Tagged: exchange rate, interconnected, monetary policy, policy coordination, spillover | 1 Comment »
Posted on April 14, 2011 by iMFdirect
With global challenges that require global solutions—the theme of the meetings—IMF Managing Director Dominique Strauss-Kahn reminds us that this is “not the time for complacency.”
Government ministers and officials, members of civil society organizations, journalists, and others are flocking to Washington DC this week to discuss and decide on key issues facing the global economy. Continue reading
Filed under: Annual Meetings, Civil Society, Economic outlook, Employment, IMF, Inequality, International Monetary Fund, Multilateral Cooperation | Tagged: capital controls, cooperation, Fiscal Monitor, Global Challenges Global Solutions, global economy, Global Financial Stability Report, global financial system, global imbalances, Globalization, IMF-World Bank Spring Meetings, inequality, international monetary system, policy coordination, unemployment, World Economic Outlook | 3 Comments »
Posted on April 11, 2011 by iMFdirect
By Olivier Blanchard
The world economic recovery is gaining strength, but it remains unbalanced.
Three numbers tell the story. We expect the world economy to grow at about 4.5 percent a year in both 2011 and 2012, but with advanced economies growing at only 2.5 percent, while emerging and developing economies grow at a much higher 6.5 percent.
On the good news side. Earlier fears of a double dip—which we did not share—have not materialized. Continue reading
Filed under: Advanced Economies, Economic Crisis, Economic outlook, Economic research, Emerging Markets, International Monetary Fund, Low-income countries | Tagged: bank recapitalization, capital controls, capital inflows, commodity prices, economic recovery, exchange rate, Financial regulation, financial stability, financial supervision, fiscal consolidation, Fiscal Stimulus, fiscal sustainability, inflation expectations, inventory cycle, macroprudential policies, policy coordination, potential output, private demand, unemployment, World Economic Outlook | 8 Comments »
Posted on February 18, 2011 by iMFdirect
Certainly the world did not end in 2008 with the collapse of Lehman and the crisis that followed. But, it didn’t mostly—perhaps only—because extraordinary international policy cooperation helped avert a far worse outcome.
… the G-20 has now to adapt to a new economic environment. It must prove that it is able to coordinate the economic policies of major economies on an ongoing basis.
French G-20 Presidency
G-20 Finance Ministers and Central Bank Governors gather in Paris for their first ministerial level meeting of France’s G-20 presidency at a critical juncture Continue reading
Filed under: Economic outlook, Employment, G-20, Global Governance, Globalization, International Monetary Fund, Multilateral Cooperation | Tagged: commodity prices, Dominique Strauss-Kahn, economic recovery, food prices, G-20, G-20 MAP, G-20 mutual assessment process, global imbalances, inequality, international monetary cooperation, international monetary system, John Lipsky, Olivier Blanchard, policy coordination, unemployment | 3 Comments »
Posted on February 10, 2011 by iMFdirect
By Dominique Strauss-Kahn
(Version in Español Français 日本語)
The international monetary system (IMS) is a topic that encompasses a wide range of issues—reserve currencies, exchange rates, capital flows, and the global financial safety net, to name a few. It is one of the key issues on the G-20’s work agenda for 2011, and a topic that is eliciting lively discussion—for instance the recent, insightful report of the group chaired by Michel Camdessus, called the “Palais-Royal Initiative”.
Some are of the view that the current system works well enough. While not perfect, they point to its resilience during the crisis, citing the role of the U.S. dollar served as a safe haven asset. And now that the global recovery is underway, they see little reason to worry about the IMS. In other words, “if it ain’t broke, don’t fix it”.
I take a less sanguine view. Continue reading
Filed under: Advanced Economies, Economic Crisis, Emerging Markets, G-20, Global Governance, Globalization, International Monetary Fund, Low-income countries, Multilateral Cooperation | Tagged: capital controls, capital flows, early warning exercise, exchange rates, Flexible Credit Line, FSAP, G-20 mutual assessment process, global financial safety net, global imbalances, international monetary cooperation, international monetary system, macrofinancial linkages, policy coordination, precautionary credit line, regional financing mechanisms, reserve currencies, Special Drawing Rights, surveillance | 17 Comments »
Posted on October 12, 2010 by iMFdirect
By Dominique Strauss-Kahn
(Version in عربي 中文 Español Français 日本語 Русский )
This past weekend in Washington DC, as the economic leaders of 187 countries gathered for the Annual Meetings of the IMF and World Bank, the mood was tense. The world’s finance ministers and central bank governors were concerned because the global recovery is fragile. And uneven. And it is fragile because it is so uneven.
In the emerging markets of Asia, Latin America, and the Middle East, things are going pretty well. Even in Africa, many countries have returned to growth much faster than in previous recessions. In Europe, however, the recovery is sluggish. And in the United States, it remains subdued. The IMF’s latest economic outlook, released during the meetings, does not anticipate a “double dip.” But there are risks. Continue reading
Filed under: Advanced Economies, Annual Meetings, G-20, IMF, International Monetary Fund, Multilateral Cooperation, عربي | Tagged: Annual Meetings, balanced and sustainable growth, cooperation, cross-border linkages, currency wars, double dip, financial sector reform, fiscal sustainability, G-20, global recovery, governance, IMF quotas, IMF/World Bank Annual Meetings, IMFC, International Monetary and Financial Committee, jobs, policy coordination, spillovers, unemployment | 10 Comments »
Posted on October 6, 2010 by iMFdirect
By Olivier Blanchard
Achieving a “strong, balanced, and sustained world recovery”—to quote from the goal set in Pittsburgh by the G-20—was never going to be easy. It requires much more than just going back to business as usual. It requires two fundamental and complex economic rebalancing acts.
First, internal rebalancing. When private demand collapsed, fiscal stimulus helped reduce the fall in output. This helped avoid the worst. But private demand must now become strong enough to take the lead and sustain growth, while fiscal stimulus gives way to fiscal consolidation.
The second is external rebalancing. Many advanced countries, most notably the United States, relied excessively on domestic demand before the crisis, and they must now rely more on net exports. Many emerging market countries, most notably China, had relied excessively on net exports, but must now look to domestic demand. Continue reading
Filed under: Advanced Economies, Economic Crisis, Emerging Markets, G-20, growth, Low-income countries, Multilateral Cooperation | Tagged: balanced and sustainable growth, capital inflows, downside risks, economic imbalances, financial reform, fiscal consolidation, Fiscal Stimulus, global financial crisis, IMF World Economic Outlook, monetary accommodation, policy coordination, private domestic demand, private investment, rebalance global economy, sustainable recovery, unemployment | 10 Comments »