In the most vulnerable countries, strengthening state capacity must adapt to more frequent economic shocks, greater political instability, and fewer resources
Emerging market and low-income economies have a significant untapped tax potential of 8 percent to 9 percent of GDP
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.
Although global debt recorded another significant decline in 2022, it is still high, with debt sustainability remaining a concern
FINANCE & DEVELOPMENT Magazine: Transparent governance, economic modernization, private-sector leadership, and responsiveness to the energy transition can aid transformation
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The region, which successfully navigated economic turmoil, now must boost inclusive growth, reduce debt, and capitalize on new opportunities
The August 2021 allocation of special drawing rights supported countries amid recovery from the pandemic—and continues to offer benefits
Economic growth shows near-term resilience amid persistent challenges
Growing trade restrictions may reverse economic integration and undermine the cooperation needed to protect against new shocks and address global challenges
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
International partners must support the continent’s most vulnerable countries to adapt to extreme weather—or spillovers could become more disruptive
The magazine publishes insights on international finance, economics, & development.
The region has received minimal private climate financing despite being highly vulnerable to climate disasters and having the greatest need
A coordinated approach, including toward subsidies, is needed to tackle climate change successfully
Novel survey shows how concerned people are about climate change, how they view mitigation polices, and what drives support for climate action
Listen to the brightest minds in economics discuss their latest research
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
Higher interest rates soon would prevent more economic pain later
Weaker currencies make the fight to curb inflation harder given the region’s dependence on imports
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.
We must work together to end the pandemic, navigate monetary tightening and shift focus to fiscal sustainability.
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
Fiscal policy can ease the task of monetary policy in reducing inflation while mitigating risks to financial stability
Countries with elevated housing prices and high household debt issued at floating rates are particularly vulnerable to monetary policy tightening
Property markets should enjoy greater stability when central banks slow or pause their campaign of raising interest rates to tame inflation
International organizations repeat joint call for rapid action on food and nutrition security
The partial shutoff of gas deliveries is already affecting European growth, and a full shutdown could be substantially more severe.
Countries should allow international prices to pass through to domestic prices while protecting households that are most in need.
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.
Women remain underrepresented in economics, yet many have made an outsized impact on the field.
Digital technologies shielded labor and productivity from the pandemic, while lagging countries accelerated the adoption of technology. However, digitalization gaps persist.
Regulators and supervisors must act now to strengthen the prudential framework
A new kind of multilateral platform could improve cross-border payments, leveraging technological innovations for public policy objectives
Stronger financial regulation and supervision, and developing global standards, can help address many concerns about crypto assets
Amid slowing global growth, promoting technological adoption and closing digital divides can help the region boost aggregate productivity and economic output
Our series examines how regulators, investors and central banks are embracing the promise—and bracing for the peril—of evolving financial technologies
