Designed for Growth: Taxation and Productivity


By Vitor Gaspar and Laura Jaramillo

Versions in 中文 (Chinese) Français (French) Русский (Russian)

Productivity drives our living standards. In our April 2017 Fiscal Monitor, we show that countries can raise productivity by improving the design of their tax system, which includes both policies and administration. This would allow business reasons, not tax ones, to drive firms’ investment and employment decisions. Continue reading

Drivers of Declining Labor Share of Income


By Mai Chi Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian

Versions in عربي (Arabic), 中文 (Chinese), Français (French), Русский (Russian), and Español (Spanish)

After being largely stable in many countries for decades, the share of national income paid to workers has been falling since the 1980s. Chapter 3 of the April 2017 World Economic Outlook finds that this trend is driven by rapid progress in technology and global integration. Continue reading

Emerging Markets and Developing Economies: Sustaining Growth in a Less Supportive External Environment


By Bertrand Gruss, Malhar Nabar, and Marcos Poplawski-Ribeiro

Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

It is quite likely you are reading this on a smartphone or tablet assembled in an emerging market economy. The beverage beside you could well be tea grown in Sri Lanka or Kenya. And there is a chance that you are —or soon will be—on a plane headed for Shanghai, Sao Paulo, or St. Petersburg.

The list could go on. But even from a few examples around us, it is easy to detect the pervasive role of emerging market and developing economies in the global economy these days—a role that has grown more important over time. Continue reading

Channeling a Voice for Women


IMFBlog

Muna AbuSulayman is a Saudi Arabian media personality, whose television show, Kalam Nawaem, which means “soft talk” in Arabic, is the longest running and most popular social issues show in the Middle East. In this podcast, AbuSulayman discusses pushing social boundaries, including on topics such as gender equality. Continue reading

How an Extended Period of Low Growth Could Reshape the Financial Industry


By Gaston Gelos and Jay Surti

Versions in  عربي (Arabic), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

What happens if advanced economies remain stuck in a long-lasting funk marked by tepid growth, low interest rates, aging populations and stagnant productivity? Japan offers an example of the impact on banks, and our analysis suggests that there could also be far-reaching consequences for insurance companies, pension funds, and asset-management firms. Continue reading

With Global Financial Markets, How Much Control Do Countries Have Over Economic Policies?


By Selim Ali Elekdag and Gaston Gelos

Versions in عربي (Arabic), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

The outlook for further interest-rate increases by the US Federal Reserve revives interest in a compelling question: In an increasingly integrated global financial system, how much control do countries outside of the US retain over their economic policies?  Continue reading

Services Exports Open a New Path to Prosperity


By Prakash Loungani, Chris Papageorgiou, and Ke Wang

Version in 中文 (Chinese)

Services, which already account for 50 percent of world income and 70 percent of employment, are also becoming an important part of international trade. Services exports—accounting for nearly one fourth of total exports—have come to play a central role in the global economy, thanks in large part to advances in technology. Continue reading

Chart of the Week: Slowing Productivity: Why It Matters and What To Do


By IMFBlog

Output per worker and total factor productivity have slowed sharply over the past decade in most advanced economies and many emerging and developing countries.

Even before the global financial crisis, productivity growth showed signs of slowing in many advanced economies. But in the aftermath of the crisis, there was a further, abrupt deceleration. Continue reading

Union of Labor and Growth


By IMFBlog

John Evans is Head of the Trade Union Advisory Committee to the Organisation for Economic Cooperation and Development, which represents some 65 million organized workers worldwide. In this podcast, he says that the labor market works much like any other market, driven by supply and demand, and the latter is very dependent on how well the economy is doing.  Continue reading

Two Things That Keep Central Banks’ Reserve Managers Awake at Night


By Veronica Bacalu, Vincent Fleuriet, and Asad Qureshi

One of the central bank’s roles is to manage a country’s international reserves. But, central bank reserve managers have been losing sleep over two main issues: low interest rates, and how best to communicate the choices they make. Continue reading

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