Posted on February 1, 2016 by iMFdirect
Housing is on everyone’s mind. The collapse of housing bubbles can be very costly.
- In Japan, house prices rose by about 40 percent during the mid-1980s; the collapse was followed by a ‘lost decade’ in which incomes did not grow and house prices fell by over 40 percent.
- In the United States, house prices increased by about 30 percent between 2001 and 2006; their collapse was followed by the global financial crisis.
Filed under: China, Financial Crisis, housing, IMF, International Monetary Fund, Japan, U.S. | Tagged: China, global financial crisis, housing, housing market, IMF, International Monetary Fund, Japan, research, United States | Leave a comment »
Posted on February 26, 2014 by iMFdirect
By Jonathan D. Ostry and Andrew Berg
(Versions in Español, Français, Português, Русский, 中文)
Rising income inequality looms high on the global policy agenda, reflecting not only fears of its pernicious social and political effects, (including questions about the consistency of extreme inequality with democratic governance), but also the economic implications. While positive incentives are surely needed to reward work and innovation, excessive inequality is likely to undercut growth, for example by undermining access to health and education, causing investment-reducing political and economic instability, and thwarting the social consensus required to adjust in the face of major shocks.
Understandably, economists have been trying to understand better the links between rising inequality and the fragility of economic growth. Recent narratives include how inequality intensified the leverage and financial cycle, sowing the seeds of crisis; or how political-economy factors, especially the influence of the rich, allowed financial excess to balloon ahead of the crisis.
Filed under: Economic research, Employment, Financial Crisis, Financial regulation, Fiscal policy, growth, IMF, Inequality, International Monetary Fund | Tagged: education, income inequality, inequality, investment, research | 5 Comments »
Posted on September 23, 2013 by iMFdirect
(Versions in Español and عربي)
Hot off the press: a new study out today from our economists pointing to the striking economic benefits that could come from increased female participation in the work force.
IMF Chief Christine Lagarde, calling attention to the findings of the paper, “Women, Work, and the Economy,” made the case for policymakers to shift into high gear and give women equal opportunities to participate in the work force.
Filed under: Advanced Economies, Economic research, Emerging Markets, Employment, Globalization, IMF, Inequality, International Monetary Fund | Tagged: Christine Lagarde, employment, empowering women, income, income inequality, research, tax, women | 1 Comment »
Posted on June 24, 2013 by iMFdirect
By David Coady and Thomas Richardson
Many countries seek to protect poorer households by subsidizing the consumption of fuel products. However, recent IMF research shows that fuel subsidies are both inefficient and inequitable, including in India.
But what about India? Are fuel subsidies also anti-poor? Sadly, yes. A new IMF working paper shows that India’s fuel subsidies are both fiscally costly and socially regressive.
Filed under: Asia, Emerging Markets, Fiscal policy, growth, IMF, International Monetary Fund, Low-income countries | Tagged: energy subsidies, fuel subsidy spending, GDP, iMFdirect, India, research | Leave a comment »
Posted on May 20, 2012 by iMFdirect
The IMF’s well written Finance & Development
magazine has recently published two helpful online compilations of articles that may be useful to students and those interested in economic issues. They are rich collections of material that are totally free!!
1. Back to Basics
— explaining some fundamental concepts in Economics and Finance
- listen to regular audio podcasts with leading experts on development issues around the world–or download from iTunes.
- and get free a neat new ipad app for IMF news and data–it lets you chart and view global economic indicators and forecasts
Filed under: Africa, Asia, Civil Society, Debt Relief, Economic Crisis, Economic outlook, Economic research, Emerging Markets, Employment, Europe, Finance, Financial Crisis, G-20, Global Governance, growth, IMF, Inequality, International Monetary Fund, Investment, Latin America, LICs, Low-income countries, Middle East, Multilateral Cooperation, Politics, Public debt | Tagged: Back to Basics, compilation, Finance & Development. F&D, G+, Google+, IMF Survey online, interviews, iTunes, news, Nobel Prize, People in Economics, podcasts, profiles, research | 1 Comment »
Posted on May 17, 2012 by iMFdirect
By Anoop Singh
(Version in 中文)
Here’s the good news: thanks to relatively strong fundamentals and good policies, Asian economies have coped well with the global market turbulence of recent years. Now the bad: a major financial shock—say, of type ignited by the bankruptcy of U.S. investment bank Lehman Brothers in 2008—is likely to have a substantial impact on Asia. The reason: Asia’s increasing financial interconnectedness.
Over the past two decades—in line with the region’s growing role in the global economy—Asia’s equity markets have become increasingly sensitive to global financial developments. More specifically, we have discovered that equity returns in Asia generally now move in tandem with those in systemic economies. (By systemic economies, we are talking here about those countries—such as the United States and the United Kingdom which are home to major, global, financial centers such as Wall Street and the City of London.)
How do we measure that degree of financial interconnectedness? Or put another way, how do we measure the relationship—if any—between those Asian equity returns and the performance of systemic economies?
Filed under: Advanced Economies, Asia, Economic research, Europe, Financial Crisis, Globalization, International Monetary Fund, Investment, Politics | Tagged: Anoop Singh, bankruptcy, betas, China, East Asia, Hong Kong, iMFdirect blog, interconnectedness, Lehman Brothers, macroeconomic policy, research, Singapore, stocks, systemic | 2 Comments »
Posted on June 3, 2011 by iMFdirect
By Olivier Blanchard
(Version in Español)
Last week I travelled to Rio de Janeiro in Brazil to participate in a conference on managing capital flows. Organized jointly by the Brazilian authorities and the IMF, the conference brought together experts from both the demand and supply sides of the issue, including many with a wealth of hands-on experience.
The discussion was rich and informative. Clearly we still have a lot to learn about the optimal approach to managing capital flows, about the right policy tools, and the right combination of tools.
To start with two general, but important observations. Continue reading
Filed under: Emerging Markets, growth, IMF, Latin America | Tagged: capital account, capital controls, capital flows, Chile, China, emerging markets, foreign exchange, global crisis, Macroeconomic policies, research | 6 Comments »