Contents
Finance & Development
A Quarterly Publication of the International Monetary Fund September 2024 | Volume 61 | Number 3
Productivity
America Must Rediscover Its Dynamism
Slower productivity growth in the world’s largest economy threatens to reverberate around the globe
Michael Peters
AI’s Promise for the Global Economy
If properly used, it could signifcantly accelerate economic growth and help productivity growth rebound
Michael Spence
Eliminating the Productivity Drag
Reforms to address misallocation of resources can boost productivity enough to revive stagnating global growth
Nan Li and Diaa Noureldin
The Innovation Paradox
Increased R&D spending isn’t necessarily boosting US productivity as industrial giants focus on defending their turf
Ufuk Akcigit
Remote Work’s Growth Gif
Working from home is powering productivity and economic growth
Nicholas Bloom
Policy with a Purpose
Modern industrial policy should shape markets, not just fx their failures
Mariana Mazzucato
We Must Change the Nature of Growth
The pursuit of economic growth is one of our most treasured ideas, but it’s also one of the most dangerous
Daniel Susskind
Also in this issue
Creating Value for Taxpayers
Digital public infrastructure can drive a sustainable increase in revenue collection and build trust in government
Kamya Chandra, Tanushka Vaid, and Pramod Varma
The Sahel’s Intertwined Challenges
Insecurity, turbulent politics, and weak institutions stymie prospects for shared economic progress
Gilles O. Yabi
Emerging Markets on the Global Stage
Emerging markets hold both the reins of future growth and the keys to the future of multilateralism
Aqib Aslam and Petya Koeva Brooks
Infation’s Rise and Fall
Recent price swings reflected largely energy- and supply-related shocks rather than macroeconomic overheating
Mai Chi Dao, Daniel Leigh, and Prachi Mishra
EIKO OJALA
Departments
Kaleidoscope
Our view of global issues and data points
Back to Basics
Total Factor Productivity
How can economies do more with less?
Robert Zymek
Point of View
We Must Place Our Hope in Multilateralism
Only by working together can countries fend of fragmentation and deepening crises
Gordon Brown
Fairy Dust’s Economic Possibilities
Keynes celebrated the ideals of the Bretton Woods institutions as a victory for the human spirit
Zachary Carter
Mass Flourishing and Economic Dynamism
Regaining modern values can reverse the slowdown in innovation
Edmund Phelps
Picture This Demographic Decline
Falling fertility and aging populations pose signifcant challenges for many economies Andrew Stanley
People in Economics Scourge of the Rich
Prakash Loungani profles Berkeley’s Gabriel Zucman, a strong advocate for higher taxes on the most affluent
Café Economics Worry-Free Retirement
As life expectancy increases, Olivia S. Mitchell says it takes fnancial planning to take the worry out of extra retirement years
Book Reviews Into the Maelstrom
How the World Ran Out of Everything, Peter S. Goodman
Competing for the Future
Breaking the Mold: India’s Untraveled Path to Prosperity, Raghuram G. Rajan and Rohit Lamba
Currencies Considered
Floating Exchange Rates at Fifty, Douglas A. Irwin and Maurice Obstfeld, eds.
Currency Notes A Golden History
Kazakhstan’s new banknote series tells the story of the little-known but extraordinary Saka
Analisa R. Bala
NOAH BERGER; RUELLERUELLE/ALAMY STOCK PHOTO
On the Cover
Cover artist Eiko Ojala depicts productivity as an expanding circle, indicating growth, and in the details shows elements of a productive society.
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Thank you, Maureen
Maureen Burke, F&D’s managing editor for the past seven years, is stepping down to pursue other adventures. Under Maureen’s editorial leadership, the magazine has gone from strength to strength. She ensured high-quality editing and layout, including most recently a redesign, while combining her professional excellence with strong team spirit. She will be missed.
—Gita Bhatt, editor-in-chief
IMF PHOTO/JAMES MERTZ
FINANCE & DEVELOPMENT
A Quarterly Publication of the International Monetary Fund
EDITOR-IN-CHIEF
Gita Bhatt
MANAGING EDITOR
Nicholas Owen
SENIOR EDITORS
Andreas Adriano, Jeff Kearns, Peter Walker
ASSISTANT EDITOR
Andrew Stanley
CREATIVE AND MARKETING
Marta Doroszczyk, Salsa Mazlan
PRODUCTION MANAGER
Melinda Weir
COPY EDITOR
Lucy Morales
ART DIRECTION AND DESIGN
Point Five
ADVISORS TO THE EDITOR
S.M. Ali Abbas Aqib Aslam Steven Barnett Helge Berger S. Pelin Berkman Yan Carrière-Swallow Oya Celasun Martin Čihák Mame Astou Diouf Rupa Duttagupta Davide Furceri Kenneth Kang Subir Lall Raphael Lam Malhar Nabar Papa N’Diaye Mahvash Qureshi Uma Ramakrishnan Elizabeth Van Heuvelen Daria Zakharova
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