The IMF is revising its outlook for the region and stands ready to step up needed support
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.
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
Recommended policies and reforms would boost output of major economies by up to 0.7 percent and foster more balanced, sustainable, and inclusive growth
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With appropriate policies and improved productivity, Europe can reconcile short-term wage pressures and long-term labor trends with less inflation
The negative impact of ‘de-risking’ strategies by major economies would be felt beyond China, while comprehensive reforms in China could generate significant positive spillovers
The region is likely to see faster disinflation, but prospects for growth in coming years are dimming
Panama’s drought shows how trade disruptions from climate extremes can reverberate around the world
The magazine publishes insights on international finance, economics, & development.
Coordinated climate policies can spur innovation in low-carbon technologies and help them spread to emerging market and developing economies
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
Elevated inflation means central banks may have to keep policy rates higher in a way that stretches the capacity of borrowers to repay debt
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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
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
Empowering women economically is a powerful engine of inclusive growth
A new survey reveals the gender gap persists
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.
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.
