The International Monetary Fund (IMF, or the Fund) was created toward the end of the Second World War as part of an attempt to build a new, more stable international economic system and avoid the costly mistakes of the previous decades. Over the past 60 years, it has continued to change and adapt. But since its inception, it has been shaped by history and molded by the economic and political ideas of the time.
Thank you for giving me the honor of speaking with you on the occasion of this Summit of the Organization of African Unity. I am all the more conscious of this honor because this meeting is taking place at this particular point in time. Despite all the tragedies besetting it, Africa is moving forward. Economic growth has resumed in most of the continent, and your countries are reaping the fruits of implementing sound economic policies.
A program of seminars addressing issues on the general theme of making the global economy work for everyone was held in Prague in conjunction with the Annual Meetings. The seminars, organized by the IMF and the World Bank, served as a forum for private sector leaders, government officials, and officials of the international financial institutions to discuss issues related to sustainable development and international monetary and financial relations.
For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.
In a world that becomes more global every day, in a world where private business every day plays an increasingly dominant role in innovation, investment, financing, and ultimately human progress, let me tell you how much I appreciate the opportunity to address this transatlantic business council. Of course the timing of your meeting could not have been more appropriate.
International Monetary Fund. Communications Department
This issue of Finance & Development presents success and works of IMF in the past 75 years since its formation. The IMF’s financial firepower must be increased substantially, particularly in a world of relatively free capital flows. If the world of cooperative globalization is to survive and the IMF is to maintain its role within it, a great deal must change. Some of these changes are within the IMF’s control. The most important challenges for the IMF of tomorrow are, however, those created by the changing world. Global cooperation is needed to reap the benefits and avoid the pitfalls of cross-border capital flows. Cross-border capital flows are neither an unmitigated blessing nor an undoubted curse. Used judiciously, they can be beneficial to recipient countries, making up deficiencies in the availability of long-term risk capital and reducing gaps in local corporate governance. Many emerging market economies have understood that they should build foreign exchange reserves. The IMF model suggests that fluctuations in the exchange rate are the main reason for fluctuations in corporate liquidity in receiving countries.
The Web edition of the IMF Survey is updated several times a week, and contains a wealth of articles about topical policy and economic issues in the news. Access the latest IMF research, read interviews, and listen to podcasts given by top IMF economists on important issues in the global economy. www.imf.org/external/pubs/ft/survey/so/home.aspx
The International Monetary Fund was created toward the end of World War II as part of an attempt to build a new, more stable international economic system and avoid the costly mistakes of the previous decades. Over the past 60 years, it has continued to change and adapt. But since its inception, it has been shaped by history and molded by the economic and political ideas of the time.
Ladies and gentlemen, I am very pleased to participate in this forum, not only because of the importance of transparency and good governance, but also because it gives me the opportunity to express my admiration for the work that Transparency International is doing around the world. By helping to enhance public sector accountability and transparency and developing greater public awareness about the need for and requirements of good governance, your organization is performing a vital service to individual countries and the global economy. So I was very pleased in looking at my schedule following the most recent series of negotiations in Asia to find an opening—all too small, but large enough—for me to come to pay tribute to the work that you do. On the advice of my friend and former colleague at the Ministry of Finance, Mr. Dommel, I will do so by describing the IMF’s activities in this field and recounting, without embellishment, our experience in Asia.
Mr. Balazs Csonto, Yuxuan Huang, and Mr. Camilo E Tovar Mora
This paper examines the extent to which digitalization—measured by a new proxy based on IP addresses allocations per country—has influenced inflation dynamics in a sample of 36 advanced and emerging economies over 2000-2017. Phillips curve estimates show that digitalization has a statistically significant negative effect on inflation in the short run. Its economic impact is not large but has increased since 2012 and mainly operates through a cost/competition channel. Principal components and cointegration analysis further suggest digitalization is a key driver of lower trend inflation.