Easing the burden on lower-income households is not only socially fair, but also economically efficient
Large fiscal deficits and elevated debt levels call for greater fiscal prudence, but political forces are pulling in the opposite way
Worries that China’s external surpluses result from industrial policies reflect an incomplete view
EU companies grow and innovate less than American counterparts
Policymakers should prioritize steps toward greater economic resilience such as strengthening government finances and revitalizing economic growth prospects.
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A productivity slump is eroding living standards and imperiling financial and social stability
New books offer fresh perspectives on climate, China, and John Maynard Keynes
Long periods of slow economic growth can cause a jump in inequality. But a balanced set of policies can stave off that outcome.
The AI transition will require stronger social safety nets, investment in education, and tax systems that support human workers and mitigate inequality
The magazine publishes insights on international finance, economics, & development.
AI will affect almost 40 percent of jobs around the world, replacing some and complementing others. We need a careful balance of policies to tap its potential
Generative AI has introduced tantalizing new possibilities. Yet the initial excitement surrounding AI has given way to genuine and growing concerns. This issue is an early attempt to understand AI’s implications for growth, jobs, inequality, and finance.
Careful calibration of spending and tax policies can reduce inequality caused by automation.
The decline of inflation could be stalling in some economies
Currencies have depreciated to varying degrees in emerging market economies as interest rate differentials with the United States narrowed
Greater digitalization and heightened geopolitical tensions imply that the risk of a cyberattack with systemic consequences has risen
Rapid growth of this opaque and highly interconnected segment of the financial system could heighten financial vulnerabilities given its limited oversight
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
19 countries in the Middle East and Central Asia are exploring issuing a CBDC
Listen to the brightest minds in economics discuss their latest research
Some lenders in the region may be vulnerable to a combination of higher interest rates, corporate sector stress, and liquidity pressures
New tool offers a chance to improve transparency and safeguard independence
Despite sharp monetary policy tightening, financial conditions have eased around much of the globe, posing a challenge for central banks
Climate Change Indicators Dashboard shows that avoiding physical damage from climate change can have sizable benefits
Read the latest insights into country and regional economic issues.
Data Gaps Initiative helps policymakers better understand the environmental impact of economic activities and the effectiveness of climate policies
Investment of up to 4 percent of GDP annually is needed to ensure climate resilience and meet emissions reduction targets
International cooperation is more important than ever because no country can address climate change by itself
Higher interest rates have exposed vulnerabilities in some banks, and many more would be weakened by a prolonged period of tight monetary policy
Tighter monetary policy is starting to work. Alternatives would be more costly.
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.
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
