Expectations increasingly drive inflation dynamics. Improvements in monetary policy frameworks can better inform people’s inflation expectations and thereby help reduce inflation at lower output cost.
Providing corridors for food staples and critical minerals could avert food crises and help keep the green transition on track.
Managing the climate transition calls for a fiscal balancing act with the right mix of policies.
A broad mix of policies is needed to unlock the necessary private capital in emerging market and developing economies and ensure a positive climate impact
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Countries that enacted reforms saw their debt-to-GDP ratios fall by 3 percentage points, on average, over a multi-year period
The region, which successfully navigated economic turmoil, now must boost inclusive growth, reduce debt, and capitalize on new opportunities
FINANCE & DEVELOPMENT Magazine: Transparent governance, economic modernization, private-sector leadership, and responsiveness to the energy transition can aid transformation
Empowering women economically is a powerful engine of inclusive growth
The magazine publishes insights on international finance, economics, & development.
International partners must support the continent’s most vulnerable countries to adapt to extreme weather—or spillovers could become more disruptive
Scaling back subsidies would reduce air pollution, generate revenue, and make a major contribution to slowing climate change
The region has received minimal private climate financing despite being highly vulnerable to climate disasters and having the greatest need
Central banks may keep interest rates higher for longer than currently priced; given investors’ benign inflation outlook and growing expectations for a soft landing, this could increase financial stability risks and weigh on growth
Higher prices so far mostly reflect increases in profits and import costs, but labor costs are picking up
But there are trade-offs between price and financial stability during times of stress, especially when inflation is high
Success will require tighter macroeconomic policies tailored to changing financial conditions, strong financial supervision and regulation, and bold supply-side reforms
Wage gains remain broadly in line with past episodes, which didn’t tend to lead to sustained wage-price acceleration
Higher interest rates soon would prevent more economic pain later
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How close will depend on the persistence of public debt, on how climate policies are financed and on the extent of deglobalization
This issue of F&D explores how inflation dynamics have forced a re-think of how central banks conduct monetary policy
Tools such as foreign exchange intervention can ease the effects of shocks but need to be carefully weighed against potential longer-term costs.
A new survey reveals the gender gap persists
Capturing the dividends from women’s economic equity. Too many women are locked out of economic opportunities, which is not only unfair but also harms growth and resilience for all.
The pandemic has deepened long-standing gender gaps, with women continuing to bear the burden of unpaid work. By structuring spending and taxation in ways that advance gender equality—a process called gender budgeting—governments can help close the gap.
International Women’s Day, first recognized by the United Nations in 1977, grew from early 1900s labor movements for better working conditions and women’s right to work.
Stopping violence against women is not only a moral imperative, new evidence shows that it can help the economy.
Emerging market and low-income economies have a significant untapped tax potential of 8 percent to 9 percent of GDP
Digitalization, done right, can equip governments to improve revenue collection and spending efficiency.
Tax systems need updating to cope with crypto assets, whose anonymity and decentralized nature poses challenges—not least for the value added tax.
Stronger risk management can reduce budgetary surprises and allow the region to plan better for development.
Taming inflation requires slowing down demand. While monetary policy has played its part, lowering fiscal deficits would also help lessen the cost-of-living crisis.
Following exceptional pandemic support, governments should foster disinflation and financial stability while protecting the most vulnerable and safeguarding public finances
Supervisors in many countries face conditions that limit their effectiveness. Raising the bar requires independence with clear mandates, enhanced powers, greater resources, and more effective approaches.
Elevated borrowing costs are adding to risks that some companies may default on their debt as central banks keep interest rates higher for longer to contain inflation
NBFIs have emerged as key players in the financial sector, and global financial stability could hinge on their resilience as policy is tightened to tackle high inflation
A deterioration in market liquidity has amplified price swings
Global financial conditions have tightened as central banks accelerate monetary policy normalization to keep rapid inflation from becoming entrenched
The IMF’s Global Financial Stability Report, introduced in 2002, was a step toward a more comprehensive assessment of risks in financial markets and cross-border capital flows.
