I now turn to the question of how to manage a turn in the global financial cycle. We derive the optimal policy response ex ante — prior to the shock — and ex post — during the shock — as the solution to the planner’s p...
I now turn to the question of how to manage a turn in the global financial cycle. We derive the optimal policy response ex ante — prior to the shock — and ex post — during the shock — as the solution to the planner’s problem with commitment. The optimal policy depends on the pa...
Russia’s invasion of Ukraine has compounded the Covid-19 pandemic—a crisis upon a crisis—devastating lives, dragging down growth, and pushing up inflation. High food and energy prices are weighing heavily on households around the world...
2009:Over the years after joining the EU, Greece failed several times to meet EU’s economic and fiscal benchmarks. Global financial crisis finally exposed Greek’s deep rooted trouble as the country unable to pay the interests on its national debts. A rescue plan was needed. 2010:IMF baile...
One solution to confounding temporal variables would be to use time-fixed effects. Since IMF liquidity does not vary across countries in a given year, however, this is not an option for our design. Thus, the second part of the estimation strategy is to interact the “shift" variable with ...
A better solution, according to the report, would be to provide "targeted, temporary, and direct support to vulnerable households," while allowing domestic prices to adjust. The latest report noted that high uncertainty and marked divergences across countries require a "tailored" and "agile" fiscal...
The IMF has revised downwards its annual GDP growth projections for sub-Saharan Africa to 3.3 percent, citing a sluggish global economy, worldwide inflation, high-borrowing costs and a cost of living crisis. Tight markets The Kenyan economy is nevertheless expected to expand by five percent...
This approach allows a closed-form solution of the model’s steady state and is also adopted by Meier and Mueller (2006) . Note that I define\({\hat{\tau}}_{t}\)=\(d\tau _{t}\), while in the aforementioned papers the fiscal rule applies to\(\frac{d\tau _{t}}{\tau }\)....
China can instruct banks how to lend and to whom, and can even tell big companies how and where to invest. That's a solution China's leaders seem eager to avoid, but it remains an option. On the contrary, central bankers in the U.S. and Europe have found that even record-low inter...
“There lies the problem and a solution lies within,” the official added. Read:Anti-Finance Bill protests cost city businesses dearly The official said this even as President William Ruto- in a rare speech of concession to youth demands- while declaring that he would not assent to the Fi...