Intervention, when appropriate, should be used as part of an integrated policy approach that incorporates other policy levers to mitigate risks
Closing the gender gap in science, technology, engineering, and math would accelerate the green transition while making it more inclusive
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
EU companies grow and innovate less than American counterparts
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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.
Major economies are becoming more aligned, but the world’s medium-term prospects remain weak
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
Climate Change Indicators Dashboard shows that avoiding physical damage from climate change can have sizable benefits
Investment of up to 4 percent of GDP annually is needed to ensure climate resilience and meet emissions reduction targets
Some higher risk countries still face high costs for selling foreign-currency denominated debt to investors after major central banks raised interest rates
Effects may be delayed in some countries: if interest rates remain higher for longer, homeowners will likely feel their effects as mortgage rates adjust
Major emerging markets have shown resilience to global rate gyrations, but more challenging times could be ahead
One of the steepest price declines in at least a half century heightens risks to investors and lenders
Prospective home buyers face high prices and elevated borrowing costs, while homeowners refrain from listing their properties
Elevated inflation means central banks may have to keep policy rates higher in a way that stretches the capacity of borrowers to repay debt
New AI Preparedness Index Dashboard tracks 174 economies based on their digital infrastructure, human capital, labor policies, innovation, integration and regulation
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.
19 countries in the Middle East and Central Asia are exploring issuing a CBDC
Independence is critical to winning the fight against inflation and achieving stable long-term economic growth, but policymakers risk facing pressure amid a wave of elections this year
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
During the pandemic, central banks in both advanced and emerging market economies took unprecedented measures to ease financial conditions and support the economic recovery, including interest-rate cuts and asset purchases.
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
