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Business and Economics > Banks and Banking

You are looking at 1 - 10 of 36 items for :

  • Type: Journal Issue x
  • Wages, Compensation, and Labor Costs: Public Policy x
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Cover IMF Staff Country Reports
Republic of Türkiye: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Türkiye
International Monetary Fund. European Dept.
The 2024 Article IV Consultation highlights that a decisive shift in economic policies over the past year has tightened Türkiye’s overall policy stance. A significant tightening of macroeconomic policy since mid-2023 has substantially reduced crisis risks. Tighter financial conditions are weighing on domestic demand and inflation has fallen. Tax and expenditure measures partly dampened an expansionary fiscal impulse and the commitment to stronger incomes policies has strengthened credibility. The policy turnaround has reduced economic imbalances and revived confidence. Headline inflation has fallen as tighter financial conditions are weighing on domestic demand. Under the authorities’ gradual policy adjustment, inflation is expected to further decline. Risks around the baseline are significant and tilted to the downside. They include stronger-than-expected wage and price inertia, a reversal of capital flows, higher global energy prices, and escalating geopolitical tensions. Significant financial and external vulnerabilities remain. The authorities’ gradual approach to fighting inflation prolongs the period during which risks might occur.
Keywords:
inflation expectation; IFC portfolio implementation; WB program; WBG portfolio; authorities project growth; Inflation; Central bank policy rate; Fiscal stance; Minimum wages; Global
Cover IMF Staff Country Reports
Republic of North Macedonia: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of North Macedonia
International Monetary Fund. European Dept.
The economy is rebounding. After a 6 percent drop in 2020, real GDP is projected to grow at 4 percent both in 2021 and 2022, reflecting improved mobility, a return of the diaspora, and continued policy support. With uncertainty remaining high, including about the course of the pandemic, policies need to be kept flexible. Emphasis should be on limiting the economic scars from the pandemic crisis while making progress on long-standing reform priorities such as further strengthening public financial management and revenue administration and buttressing the financial safety net.
Keywords:
minimum wage increase; staff appraisal; productivity development; staff project; policy support; COVID-19; Minimum wages; Inflation; Global; Europe
Cover IMF Staff Country Reports
Mexico: 2021 Article IV Consultation-Press Release; and Staff Report
International Monetary Fund. Western Hemisphere Dept.
Spurred by strong U.S. growth and rising vaccination rates, the economy is rebounding. The government has successfully maintained external, financial, and fiscal stability despite the deepest recession in decades. Nonetheless, Mexico is bearing a very heavy humanitarian, social, and economic cost from COVID-19, including over half a million excess deaths, sizable under-employment, an increase in already-high levels of poverty, and learning losses for the young. Real income per capita is continuing its long-run divergence from the U.S., while additional challenges are emerging from technological shifts and climate change.
Keywords:
liability positions vis-à-vis nonresident; data ROSC update; ROSC mission; Policy discussion; climate change mitigation policy; Inflation; External sector statistics; Central bank policy rate; Government finance statistics; Global
Cover IMF Staff Country Reports
Italy: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy
International Monetary Fund. European Dept.
This 2020 Article IV Consultation with Italy reflects discussions with the Italian authorities in January 2020 and is based on the information available as of January 28, 2020. It focuses on Italy’s medium-term challenges and policy priorities and was prepared prior to the outbreak of COVID-19 in Italy. It, therefore, does not cover the outbreak or the related policy response, which has since become the overarching near-term priority. The outbreak has greatly amplified uncertainty and downside risks around the outlook. Staff is closely monitoring this health crisis and will continue to work on assessing its impact and the related policy response in Italy and globally. The overarching challenges are to raise growth and enhance resilience. The IMF staff projects growth in Italy to be the lowest in the European Union over the next five years. High public debt remains a key source of vulnerability. Substantial progress has been made in strengthening bank balance sheets, but important weaknesses remain. In order to durably raise growth and reduce vulnerabilities, Italy needs faster potential growth and medium-term fiscal consolidation.
Keywords:
ISCR; CR; government; IMF staff calculation; Italy; GDP ratio; staffs projection; staffs recommendation; consultation discussion; Income; Labor costs; Nonperforming loans; Global; Europe
Cover IMF Staff Country Reports
Greece: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper explores the links between wage policies, non-wage cost developments, and competitiveness. A series of program-era policies helped to partially reverse this trend, including labor market policies that cushioned the effect of the crisis on employment and brought unit labor costs broadly in line with trading partners. However, the resulting more competitive wage structure only partly translated into price adjustments due to product market rigidities (with firms retaining some profit margin) and rising non-wage cost factors (e.g., taxes and financing costs). This incomplete internal devaluation and subsequent low productivity gains reinforce the view that Greece has further to go to address its external imbalances. However, labor policy reversals following program exit in August 2018 threaten this objective. The paper shows that Greece must preserve its labor cost competitiveness while increasing efforts to facilitate price adjustment in product markets and reduce non-wage costs.
Keywords:
ISCR; CR; bank; Greece; capital; installment scheme; NFA position; State aid rule; CA deficit; current account; Minimum wages; Mortgages; Wages; Labor costs; Employment; Europe; Global
Cover IMF Staff Country Reports
Republic of Korea: Selected Issues
International Monetary Fund. Asia and Pacific Dept
This Selected Issues chapter outlines a strategy to facilitate this and navigate the more challenging monetary environment, involving enhanced communication of policy interest rate intentions and inflation-forecast targeting. The reduction in the inflation target by a percentage point to 2 percent in January 2016 weakened the nominal anchor. Monetary policy can play a role rebuilding the credibility of the anchor more rapidly through the adoption of inflation-forecast targeting. This strengthening of the monetary policy framework involves enhancing communications. An effective, credible monetary policy cannot address all macroeconomic challenges facing Korea. Rather, it can foster robust growth with low inflation, providing a stable and predictable environment that allows other policies to work more effectively. These other policies play a complementary role. Fiscal policy can reinforce the effectiveness of monetary policy, as illustrated by model scenarios. Structural policies can also support monetary policy by, for example, boosting potential growth.
Keywords:
ISCR; CR; firm; debt; wage; household debt; chaebol; GDP ratio; minimum wage hike; chaebols firm; GVC integration; temporary worker; Employment; Minimum wages; Labor markets; Wage adjustments; Global; Eastern Europe
Cover IMF Staff Country Reports
Republic of Latvia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Latvia
International Monetary Fund. European Dept.
This paper focuses on the key issues related to the economy of Latvia. Growth picked up somewhat last year despite a weak external environment. GDP growth rose to 2.7 percent, up about ¼ percent over the previous year. However, growth is expected to slow slightly in 2016 to 2½ percent. While Latvia continues to make steady economic progress, a key challenge will be to generate the growth necessary to sustain the pace of income convergence with Western Europe. Structural reforms will be required to improve state-owned enterprise governance and strengthen the business environment, upgrade public infrastructure, and modernize legal systems.
Keywords:
ISCR; CR; growth; staff appraisal; adjusted basis GDP; Latvia; authority; Q1 GDP; IMF staff estimate; EU rule; Non-resident deposits; Credit; Income; Minimum wages; Wages; Europe; Global; Western Europe
Cover IMF Staff Country Reports
Republic of Lithuania: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Lithuania
International Monetary Fund. European Dept.
This paper discusses key issues pertaining to the economy of Lithuania. Good policies and favorable business conditions have helped put Lithuania back on the convergence path with western European living standards. Last year, growth took a temporary hit from difficult external environment. External factors caused the price level to fall in 2015, but deflation is unlikely to take root. The external current account moved into moderate deficit in 2015 due to weak export markets and strong domestic demand. Lithuania needs to focus on raising productivity growth through structural reforms, securing continued competitiveness as labor market tightens, and reducing income inequality through fiscal measures while maintaining a prudent policy stance.
Keywords:
ISCR; CR; demand growth; price; labour market; loan portfolio; labor market mismatch; growth from export partner; productivity enhancement; innovation policy; redistribution policy; wage growth; Minimum wages; Wages; Income; Income inequality; Global; Baltics; Western Europe
Cover IMF Staff Country Reports
Turkey: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey
International Monetary Fund. European Dept.
This paper discusses key issues related to Turkey’s economy. Economic growth of Turkey continues to show resilience despite several shocks. Growth remains based on domestic demand, in turn, supported by accommodative monetary and fiscal policies. With the economy projected to grow at 3.8 percent in 2015, output and unemployment gaps are practically closed. But, growth is still below both the historical average and the authorities’ long-term target. Potential growth is also slowing. The employment rate is low, especially among women. To tackle these issues, the government has announced ambitious program of reforms aiming to increase potential growth and reduce external imbalances.
Keywords:
ISCR; CR; monetary policy; Turkey; accommodative monetary policy; inflation; financing; Turkey trust fund portfolio; development priority; IBRD financing; unprocessed food price inflation; Minimum wages; Fiscal stance; Global
Cover IMF Working Papers
Wage-Price Dynamics and Structural Reforms in Japan
Davide Porcellacchia
Structural reforms in the liquidity trap need not be deflationary. This paper develops a simple framework to study the role that key characteristics of Japan’s labor and product markets—labor-market duality and weak corporate governance—play in generating unfavorable wage-price dynamics. The model allows a discussion of whether and in what form structural reforms may contribute to Japan’s short-run goal of reflating the economy. It finds that boosting inflation with structural reforms implies an unusual trade-off with employment, that is an inverted Phillips curve. Simultaneous implementation of labor-market and product-market reforms is most effective in terms of reflating the economy.
Keywords:
WP; liquidity trap; labor market; nominal interest rate; price level; real wage; Abenomics; corporate governance; inflation; Japan; labor-market duality; structural reforms; wage-price dynamics; single open-ended contract; market power; cash holding; Phillips curve; Zero lower bound; Labor markets; Liquidity; Global