Narrow Your Choices

Refine By Countries

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Business and Economics > Finance: General

You are looking at 1 - 10 of 516 items for :

  • Type: Journal Issue x
Clear All Modify Search
Cover Global Financial Stability Notes
Pension Funds and Financial Stability
This Global Financial Stability Note examines the growth of the pension fund sector and the potential financial stability implications. Historically, pension funds have been seen as a contributor to financial stability because of their long-term and well-diversified liabilities. However, the sector has undergone significant structural shifts accelerated by a prolonged period of low interest rates, increasing its exposure to traditional risks while introducing emerging risks; this is reflected in growing intra-financial sector interconnectedness and exposure to long-term sovereign bonds. The recent transition to higher interest rates should be positive for the pension sector, albeit its pace and abruptness has been associated with liquidity stress and contagion risks in some countries.
Keywords:
Pension Funds; Financial Stability; Assets; Risks; Pension Plans; major pension fund sector; IMF Library; major pension savings market; structural liquidity; asset-liability duration mismatch; risk analysis; Pension spending; Pensions; Financial sector stability; Liquidity risk; Global
Cover IMF Working Papers
Pension Reform and Stock Market Development
Shujaat Khan
,
Bo Li
, and
Yunhui Zhao
We highlight the strong connection between developing fully-funded, individually-owned, collectively-managed, mandatory/incentivized (FICMI) pension schemes and the development of domestic stock markets. We do so by building a stylized model and complementing the analysis with cross-country empirical analysis and case studies. We also highlight the challenges of individual impatience, network externalities, and coordination failure in long-term equity investments, which are crucial for stock market development and technological innovation. We find that FICMI pension schemes—when sufficiently wide in coverage and large in size—can serve as coordination devices to support long-term equity investments. Such investments will not only promote domestic stock market development and make it easier for firms to raise long-term equity capital, therefore supporting long-term economic growth, but also enhance financial inclusion and enable more households to benefit from the overall economic development, therefore contributing to inclusive growth. Moreover, we find that the introduction of FICMI pension schemes can impact household savings in two ways: first, FICMI pension can increase household savings through “forced/incentivized” savings channel, where households save too little without FICMI pension (such as in many EMDEs); and second, FICMI pension can decrease household savings and increase household consumption by reducing non-pension savings and decreasing precautionary savings, where households save too much without FICMI pension (such as in China). In both cases, FICMI pension schemes can help move the economy closer to the optimal level of household savings, and may also help improve the structure of such savings. Finally, we discuss the enabling conditions (such as a strong political commitment to the reform and a well-designed fiscal strategy for financing the transition) and policy design for FICMI pension schemes.
Keywords:
Pension Reforms; Stock Market Development; Equity Financing; Innovation' Financial Inclusion; Intertemporal Optimization; Public Pensions; Funded and Private Pensions; FICMI pension schemes; household saving; savings channel; IMF working paper No. 25/49; Pension spending; Pensions; Stock markets; Pension reform; Capital markets; East Asia
Cover IMF Staff Country Reports
Chile: 2024 Article IV Consultation-Press Release; and Staff Report
International Monetary Fund. Western Hemisphere Dept.
The economy is broadly balanced but modest potential growth has constrained increases in living standards and makes it difficult to address fiscal and social needs. Policy priorities are therefore mainly of structural nature. They include boosting productivity and employment as well as strengthening fiscal, external, and financial sector buffers—particularly in the context of a challenging global environment.
Keywords:
pension reform bill; draft bill; FSAP mission; liquidity risk supervision; interest rate risk supervision; Fiscal stance; Inflation; Labor markets; Global; South America
Cover Policy Papers
Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries
International Monetary Fund. Middle East and Central Asia Dept.
The Gulf Cooperation Council countries have successfully weathered recent turbulence in the Middle East, and their economic prospects remain favorable. Nonhydrocarbon activity has been strong amid reform implementation, although overall growth has decelerated due to cuts in oil production. The growth outlook is positive, as the envisaged easing of oil production cuts and natural gas expansion spur the recovery in the hydrocarbon sector, while the nonhydrocarbon economy continues to expand. External buffers remain comfortable despite current account balances having narrowed. Risks around the outlook are broadly balanced in the near term. More challenging medium-term risks, especially in the context of geoeconomic fragmentation and climate change, call for action on policy priorities to continue to strengthen the private sector and to diversify the economy.
Keywords:
economic diversification; financial stability; fiscal sustainability; GCC; productivity improvements; regional integration; GCC country; policy priority; B. GCC; GCC well; GCC public sector balance sheet; Labor markets; Fiscal rules; Total factor productivity; Global; Middle East; Middle East and Central Asia
Cover IMF Working Papers
A Bitter Aftertaste: How State Aid Affects Recipient Firms and Their Competitors in Europe
Luis Brandão-Marques
and
Hasan H Toprak
Industrial policy is once again at the forefront of the policy debate around the world. However, state aid is a contentious issue in the European Union given the need to maintain a level playing in its single market. This paper estimates the effects of state aid between 2016 and 2023 on listed nonfinancial firms in Belgium, France, Germany, the Netherlands, Spain, and the United Kingdom (until 2020) using a high-frequency identification approach to address endogeneity. It finds that firms that receive state aid increase employment and revenue, but not investment or labor productivity. Moreover, it finds that there are adverse spillover effects to competing firms that significantly undo any positive own effects. These findings suggest that, should there be a case for providing state aid to firms in the European Union, this should be done at the European level instead of the member state level to mitigate adverse spillovers. Pooling resources and competitively allocating aid across the Union could preserve market competition, encourage firm entry, and ensure a more efficient distribution of funds.
Keywords:
Industrial policy; firm performance; state aid; spillovers; recipient firm; government intervention; effects of State; net impact; government failure; Employment; Productivity; Competition; Europe
Cover IMF Working Papers
Riding Unicorns: Startups and Venture Capital in Japan
Salih Fendoglu
and
TengTeng Xu
The startup ecosystem in Japan has seen gradual growth, supported by the government’s recent "Startup Development Five-Year Plan" and a significant interest from overseas venture capital. This paper lays out the startup financing ecosystem in Japan, with comparison to international peers, and studies potential drivers of startup financing and their relevance for startups’ performance. The results, based on country-level aggregate analysis, underscore the critical role of firm dynamism and entrepreneurship in supporting capital investment and firm valuations. Further analyses at the firm level suggest that equity funding helps startups innovate, grow, and successfully exit. Moreover, the impact of funding on the likelihood of a successful exit appears to be higher in cultures that seem to reward risk taking.
Keywords:
Startups; venture capital; Japan; firm dynamics; funding affect startup performance; startup ecosystem; helps startup; startup financing; TengTeng xu; Self-employment; Initial public offering; Development strategy; Global
Cover Regional Economic Outlook, Middle East and Central Asia, October 2024
Regional Economic Outlook, Middle East and Central Asia, October 2024
Navigating the Evolving Geoeconomic Landscape
International Monetary Fund. Middle East and Central Asia Dept.

Abstract

Economic growth in the Middle East and North Africa and Caucasus and Central Asia regions is projected to strengthen in the near term, but only to the extent that current challenges abate. Ongoing conflicts and oil production cuts are dampening economic performance, and medium-term growth prospects have weakened over the past two decades. Moreover, high uncertainty looms, with key risks including escalating conflicts, increased geoeconomic fragmentation, and commodity price volatility. To boost growth and create jobs—especially for women and youth—reform priorities include strengthening governance, encouraging private sector investment, and advancing financial development.

Keywords:
Middle East; North Africa; Caucasus; Central Asia; Gaza; Sudan; Lebanon; trade patterns; economic growth; reforms; growth prospects; shocks; conflicts; uncertainty; economic performance; growth prospects; risks; oil production cuts; OPEC+; investment; geoeconomic fragmentation; IMF; governance; medium-term; capital deepening; women; youth; employment; commodity price volatility; private sector; financial development; CCA region; CCA economy; CCA country; IMF staff calculation; oil exporter; Total factor productivity; Financial sector development; Oil exports; Inflation; Labor force participation; East Africa; Central Asia and the Caucasus; Global
Cover 2024年10月《世界经济展望》
2024年10月《世界经济展望》
政策转向，威胁上升
International Monetary Fund. Research Dept.

Abstract

最新一期《世界经济展望》报告指出，全球经济增长稳定但乏善可陈，风险偏向下行。伴随通胀下行，货币政策已有所放松。当局需要作出调整，确保财政政策走上可持续道路，并重建财政缓冲。理解货币政策在近期全球通胀下行中的作用，以及影响结构性改革的社会接受度的因素，将是促进未来经济实现稳定、更快增长的关键所在。

Keywords:
全球增长；通货膨胀；经济预测；风险情景；货币政策；结构性改革的社会接受度
Cover Perspectivas de la economía mundial, octubre de 2024
Perspectivas de la economía mundial, octubre de 2024
Giro en las políticas, amenazas en aumento
International Monetary Fund. Research Dept.

Abstract

En la última edición de Perspectivas de la economía mundial (informe WEO) se prevé un crecimiento estable pero con tasas desalentadoras, y que la balanza de riesgos se inclina a hacia el deterioro. Conforme la política monetaria se relaja en vista de la continuidad del proceso de desinflación, es necesario cambiar la marcha para garantizar que la política fiscal siga una trayectoria sostenible y que se reponga el margen de maniobra fiscal. Para promover un crecimiento estable y más vigoroso en el futuro será esencial comprender la función de la política monetaria en el reciente proceso de desinflación mundial, así como los factores que inciden en la aceptabilidad social de las reformas estructurales.

Keywords:
crecimiento mundial; inflación; proyección económica; escenarios de riesgo; política monetaria; aceptabilidad social de las reformas estructurales
Cover World Economic Outlook, October 2024
World Economic Outlook, October 2024
Policy Pivot, Rising Threats
International Monetary Fund. Research Dept.

Abstract

The latest World Economic Outlook reports stable but underwhelming global growth, with the balance of risks tilted to the downside. As monetary policy is eased amid continued disinflation, shifting gears is needed to ensure that fiscal policy is on a sustainable path and to rebuild fiscal buffers. Understanding the role of monetary policy in recent global disinflation, and the factors that influence the social acceptability of structural reforms, will be key to promoting stable and more rapid growth in the future.

Keywords:
global growth; inflation; economic projection; risk scenarios; monetary policy; social acceptability of structural reforms; inflation expectation; commodity market development; advanced economy; debt restructuring process; growth resilience; Emerging and frontier financial markets; Labor markets; Global; Middle East and Central Asia; Caribbean; Sub-Saharan Africa; Middle East