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Advanced Economies

Measure to Measure: The Effect of Fiscal Policy on Growth and Stability

Vitor Gaspar | Posted 04.15.2015 | Business
Vitor Gaspar

Does fiscal policy respond systematically to economic activity? Can fiscal policy promote macroeconomic stability? Does greater stability support stronger growth? The answer is yes on all counts.

Global Financial Stability: Beginning to Turn the Corner

José Viñals | Posted 06.09.2014 | Business
José Viñals

Global financial stability is improving -- we have begun to turn the corner. But it is too early to declare victory as there is a need to move beyond liquidity dependence -- the central theme of our report -- to overcome the remaining challenges to global stability.

Secular Stagnation: A Working Pair of Scissors Needs Two Blades

Otaviano Canuto | Posted 05.12.2014 | Politics
Otaviano Canuto

There is a core divergence among some "Keynesian" and "Schumpeterian" economists who have proposed stagnation hypotheses; each camp points to different underlying factors for continued anemic levels of growth.

Still Some Hurdles On The Fiscal Path

Martine Guerguil | Posted 12.09.2013 | Business
Martine Guerguil

Five years into the crisis, the fiscal landscape remains challenging. On the positive side, deficit-cutting efforts and the first signs of recovery re...

Transitions to Financial Stability: A Bumpy Ride

José Viñals | Posted 01.23.2014 | Business
José Viñals

The global financial system faces several major transitions along the road to greater financial stability. These transitions will be challenging because they are accompanied by substantial risks.

Advanced Economies Strengthening, Emerging Market Economies Weakening

Olivier Blanchard | Posted 01.23.2014 | Business
Olivier Blanchard

The recovery from the crisis continues, albeit too slowly. While the focus at this time is more on emerging market economies, other legacies of the crisis are still very much present and advanced economies are not out of the woods.

The Times They Are a-Changin': Will (Fiscal) History Repeat Itself?

Carlo Cottarelli | Posted 09.24.2013 | Business
Carlo Cottarelli

Recent political and social unrest in some emerging and developing countries may have idiosyncratic features. But they also have a common denominator.

After a Golden Decade, Can Latin America Keep Its Luster?

Alejandro Werner | Posted 07.08.2013 | Business
Alejandro Werner

Latin America continues to be one of the fastest growing regions in the world, even though growth slowed down a bit in 2012. However, these blissful external conditions will not last forever.

The Ties That Bond Us: What Demand For Government Debt Can Tell Us About the Risks Ahead

Takahiro Tsuda | Posted 03.19.2013 | Business
Takahiro Tsuda

Our new research shows that advanced economies' exposure to refinancing risk and changes in government borrowing costs depend mainly on who is holding the bonds -- the demand side for government debt.

The Ties That Bond Us: What Demand For Government Debt Can Tell Us About the Risks Ahead

Serkan Arslanalp | Posted 03.19.2013 | Business
Serkan Arslanalp

It's not news that emerging markets can be vulnerable to bouts of market volatility. Investors often pull sudden stops--they stop buying or start sell...

Building on Latin America's Success

Christine Lagarde | Posted 02.05.2013 | Business
Christine Lagarde

Next week, I will travel to Latin America -- my second visit to the region since November 2011. I return with increased optimism, as much of Latin America continues its impressive transformation that started a decade ago.

Jobs. Jobs. Jobs. Getting the Labor Markets Working Again

Olivier Blanchard | Posted 01.08.2013 | Business
Olivier Blanchard

The sharp and persistent rise in unemployment in advanced economies since the 2008-09 financial crisis is a hotly debated policy issue. Rightly so: ...

Debt in a Time of Protests

Nemat Shafik | Posted 12.16.2012 | Business
Nemat Shafik

As the world economy continues to struggle, people are taking to the streets by the thousands to protest painful cuts in public spending designed to reduce government debt and deficits. This fiscal fury is understandable.

Not Making the Grade: Report Card on Global Financial Reform

Laura Kodres | Posted 11.28.2012 | Business
Laura Kodres

Despite a host of reforms in the right direction, the financial structures that were in place before the global crisis have not actually changed that much, and they need to if the global financial system is to become a safer place.

It's the Years, Not the Mileage: IMF Analysis of Pension Reforms in Advanced Economies

Benedict Clements | Posted 04.02.2012 | Business
Benedict Clements

Advanced countries face difficult choices as they undertake fiscal adjustment. While pension reforms will certainly need to be part of the picture, we must keep in mind the vital role pensions play in reducing old-age poverty.

Interest Rates and Investor Decisions: The Long and Short of It

Erik Oppers | Posted 11.13.2011 | Business
Erik Oppers

What drives the investment decisions of investors with a longer time horizon? Our research found these investors generally do not look at differences in interest rates among countries when deciding where to invest.

Toto, We're Not in Kansas Anymore: Exploring the Post-tornado Contours of the Financial System

Laura Kodres | Posted 05.25.2011 | Business
Laura Kodres

Just as a tornado in Kansas transplanted Dorothy and, her dog, Toto, from familiar comforts to the unknown land of Oz, the global crisis has led many ...

Ten Commandments for Fiscal Adjustment in Advanced Economies

Olivier Blanchard | Posted 05.25.2011 | Business
Olivier Blanchard

What advanced countries need is clarity of intent, an appropriate calibration of fiscal targets, and adequate structural reforms. With a little help from monetary policy, and from their (emerging market) friends.