This paper analyzes the link between economic growth and structural reforms. The paper highlights that as the recovery from the financial crisis firms up, many country authorities will turn their focus from short-term stabilization policies to more structural policies to spur long-term potential growth. The paper discusses that the global financial crisis has affected growth in countries of all income levels and has led to substantial output losses that in many cases could be permanent. The paper also presents a discussion on monetary policy and asset prices.

Abstract

This paper analyzes the link between economic growth and structural reforms. The paper highlights that as the recovery from the financial crisis firms up, many country authorities will turn their focus from short-term stabilization policies to more structural policies to spur long-term potential growth. The paper discusses that the global financial crisis has affected growth in countries of all income levels and has led to substantial output losses that in many cases could be permanent. The paper also presents a discussion on monetary policy and asset prices.

No. 10/2

Public Debt Sustainability and Management in a Compound Option Framework

Chan-Lau, Jorge A.; Santos, Andre

No. 10/3

Investment by Large Firms in Argentina

Piris, Alvaro

No. 10/4

Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe

Havrylchyk, Olena; Jurzyk, Emilia Magdalena

No. 10/5

The Impact Of The Global Crisis on Canada: What Do Macro-Financial Linkages Tell Us?

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No. 10/6

Correlations in Emerging Market Bonds: The Role of Local and Global Factors

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No. 10/7

What Level of Public Debt Could India Target?

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No. 10/8

The Spillover Effects of the Global Crisis on Economic Activity in MENA Emerging Market Countries-An Analysis Using the Financial Stress Index

Moriyama, Kenji

No. 10/9

Macrofinancial Linkages of the Strategic Asset Allocation of Commodity-Based Sovereign Wealth Funds

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No. 10/10

Sovereign Default Risk and Private Sector Access to Capital in Emerging Markets

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No. 10/11

After the Crisis: Lower Consumption Growth but Narrower Global Imbalances?

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No. 10/12

Exchange Rate Choices of Microstates

Imam, Patrick A.

No. 10/13

Canada’s Potential Growth: Another Victim of the Crisis?

Estevão, Marcello M.; Tsounta, Evridiki

No. 10/14

Are Financial Crises Alike?

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No. 10/15

Estimating Poland’s Potential Output: A Production Function Approach

Epstein, Natan P.; Macchiarelli, Corrado

No. 10/16

China: Does Government Health and Education Spending Boost Consumption?

Barnett, Steven; Brooks, Ray

No. 10/17

Inflation in Tajikistan: Forecasting Analysis and Monetary Policy Challenges

Alturki, Fahad; Vtyurina, Svetlana

No. 10/18

Responding to Banking Crises: Lessons from Cross-Country Evidence

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No. 10/19

The Outlook for Financing Japan’s Public Debt

Tokuoka, Kiichi

No. 10/20

Dissecting Taylor Rules in a Structural VAR

Choi, Woon Gyu; Wen, Yi

No. 10/21

An Estimated Model with Macrofinancial Linkages for India

Anand, Rahul; Peiris, Shanaka J.; Saxegaard, Magnus

No. 10/22

The Location of Domestic and Foreign Production Affiliates by French Multinational Firms

Mayer, Thierry; Méjean, Isabelle; Nefussi, Benjamin

No. 10/23

Financial Shocks and TFP Growth

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No. 10/24

The Global Financial Crisis and Workers’ Remittances to Africa: What’s the Damage?

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No. 10/25

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No. 10/26

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No. 10/27

Recovery Determinants of Distressed Banks: Regulators, Market Discipline, or the Environment?

Koetter, Michael; Kick, Thomas; Poghosyan, Tigran

No. 10/28

Fiscal Policy in Oil Producing Countries during the Recent Oil Price Cycle

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No. 10/29

Systemic Risks and the Macroeconomy

De Nicoló, Gianni; Lucchetta, Marcella

No. 10/30

Constraints on Growth in the MENA Region

Bhattacharya, Rina; Wolde, Hirut

No. 10/31

Constraints on Trade in the MENA region

Bhattacharya, Rina; Wolde, Hirut

No. 10/32

Optimal Monetary Policy with Overlapping Generations of Policymakers

Shamloo, Maral

No. 10/33

Evaluation of the Oil Fiscal Regime in Russia and Proposals for Reform

Goldsworthy, Brenton; Zakharova, Daria

No. 10/34

The Global Integrated Monetary and Fiscal Model (GIMF) – Theoretical Structure

Kumhof, Michael; Laxton, Douglas; Muir, Dirk; Mursula, Susanna

No. 10/35

Spillovers to Central America in Light of the Crisis: What a Difference a Year Makes

Swiston, Andrew

No. 10/36

Monetary Policy Transmission in Mauritius Using a VAR Analysis

Tsangarides, Charalambos G.

No. 10/37

Growth and Capital Flows with Risky Entrepreneurship

Sandri, Damiano

No. 10/38

Cross-Border Investment in Small International Financial Centers

Lane, Philip R.; Milesi-Ferretti, Gian Maria

No. 10/39

Do Currency Fundamentals Matter for Currency Speculators?

Nozaki, Masahiro

No. 10/40

Risk and the Corporate Structure of Banks

Dell’Ariccia, Giovanni; Marquez, Robert

No. 10/41

Bankruptcy and Firm Dynamics: The Case of the Missing Firms

Rodríguez-Delgado, Jose Daniel

No. 10/42

Informal Labour and Credit Markets: A Survey

Batini, Nicoletta; Young-Bae, Kim; Levine, Paul; Lotti, Emanuela

No. 10/43

Current Account Balance Estimates for Emerging Market Economies

Medina, Leandro; Prat, Jordi; Thomas, Alun H.

No. 10/44

Lessons and Policy Implications from the Global Financial Crisis

Claessens, Stijn; Dell’Ariccia, Giovanni; Igan, Deniz; Laeven, Luc

No. 10/45

Inflation Targeting and the Crisis: An Empirical Assessment

Carvalho Filho, Irineu E.

No. 10/46

The Composition and Cyclical Behavior of Trade Flows in Emerging Economies

De Bock, Reinout

No. 10/47

Bank Credit during the 2008 Financial Crisis: A Cross-Country Comparison

Aisen, Ari; Franken, Michael

No. 10/48

The Empirics of Exchange Rate Regimes and Trade: Words vs. Deeds

Qureshi, Mahvash Saeed; Tsangarides, Charalambos G.

No. 10/49

Firm Productivity, Innovation and Financial Development

Dabla-Norris, Era; Kersting, Erasmus; Verdier, Geneviève

No. 10/50

On the Solvency of Nations: Are Global Imbalances Consistent with Intertemporal Budget Constraints?

Durdu, Ceyhun Bora; Mendoza, Enrique G.; Terrones, Marco

No. 10/51

Yield Curve Dynamics and Spillovers in Central and Eastern European Countries

Hoffmaister, Alexander W.; Roldos, Jorge; Tuladhar, Anita

No. 10/52

Simulating Inflation Forecasting in Real-Time: How Useful Is a Simple Phillips Curve in Germany, the UK, and the US?

Clausen, Bianca; Clausen, Jens R.

No. 10/53

International Commodity Price Shocks, Democracy, and External Debt

Arezki, Rabah; Bruckner, Markus

No. 10/54

Precautionary Reserves: An Application to Bolivia

Valencia, Fabian

No. 10/55

FX Swaps: Implications for Financial and Economic Stability

Barkbu, Bergljot; Ong, Li L.

No. 10/56

Structural Models in Real Time

Benes, Jaromir; Clinton, Kevin; Johnson, Marianne; Laxton, Douglas; Matheson, Troy

No. 10/57

Asset Booms and Structural Fiscal Positions: The Case of Ireland

Kanda, Daniel

No. 10/58

The Real Exchange Rate and Growth Revisited: The Washington Consensus Strikes Back?

Berg, Andrew; Miao, Yanliang

No. 10/59

Caribbean Bananas: The Macroeconomic Impact of Trade Preference Erosion

Mlachila, Montfort; Cashin, Paul; Haines, Cleary

No. 10/60

The Influence of “Big Brothers:” How Important are Regional Factors for Uruguay?

Sosa, Sebastian

No. 10/61

Oman: Banking Sector Resilience

Bologna, Pierluigi; Prasad, Ananthakrishnan

No. 10/62

The U.S. Federal Debt Outlook: Reading the Tea Leaves

Celasun, Oya; Keim, Geoffrey

No. 10/63

Financial Liberalization, Structural Change, and Real Exchange Rate Appreciations

Urrutia, Carlos; Meza, Felipe

No. 10/64

Cross-country Consumption Risk Sharing, a Long-Run Perspective

Qiao, Zhaogang

No. 10/65

The Short-Run Macroeconomics of Aid Inflows: Understanding the Interaction of Fiscal and Reserve Policy

Berg, Andrew; Mirzoev, Tokhir; Portillo, Rafael; Zanna, Luis-Felipe

No. 10/66

ICT Equipment Investment and Growth in Low- and Lower-Middle-Income Countries

Haacker, Markus

No. 10/67

Competition and Firm Productivity: Evidence from Firm-Level Data

Ospina, Sandra; Schiffbauer, Marc

No. 10/68

The Cyclicality of Fiscal Policy in the Middle East and Central Asia: Is the Current Crisis Different?

Abdih, Yasser; Lopez-Murphy, Pablo; Roitman, Agustin; Sahay, Ratna

No. 10/69

Public Expenditure on Social Programs and Household Consumption in China

Baldacci, Emanuele; Callegari, Giovanni; Coady, David; Ding, Ding; Kumar, Manmohan S.; Tommasino, Pietro; Woo, Jaejoon

No. 10/70

Crisis Management and Resolution for a European Banking System

Fonteyne, Wim; Bossu, Wouter; Cortavarria, Luis; Giustiniani, Alessandro; Gullo, Alessandro; Hardy, Daniel C. L.; Kerr, Sean

No. 10/71

Tax Revenue Response to the Business Cycle

Sancak, Cemile; Velloso, Ricardo; Xing, Jing

No. 10/72

A Public Financial Management Framework for Resources-Producing Countries

Dabán Sánchez, Teresa; Hélis, Jean-Luc

No. 10/73

Effects of Fiscal Stimulus in Structural Models

Coenen, Günter; Erceg, Christopher; Freedman, Charles; Furceri, Davide; Kumhof, Michael; Lalonde, René; Laxton, Douglas; Lindé, Jesper; Mourougane, Annabelle; Muir, Dirk; Mursula, Susanna; Roberts, John; Roeger, Werner; de Resende, Carlos; Snudden, Stephen; Trabandt, Mathias; in’t Veld, Jan

No. 10/74

Asset Securitization and Optimal Retention

Kiff, John; Kisser, Michael

No. 10/75

Economic Transition and Health Care Reform: The Experience of Europe and Central Asia

Leive, Adam

No. 10/76

Estimating The Inflation-Growth Nexus – A Smooth Transition Model

Espinoza, Raphael A.; Leon, H. L.; Prasad, Ananthakrishnan

No. 10/77

Fiscal Objectives in the Post IMF Program World: The Case of Albania

Jonas, Jiri

No. 10/78

Spillovers of Domestic Shocks: Will They Counteract the “Great Moderation”?

Carare, Alina; Mody, Ashoka

No. 10/79

Fiscal Adjustment in Sudan: Size, Speed and Composition

Abbas, S. M. Ali; Moriyama, Kenji; Naseer, Abdul

No. 10/80

Budget Institutions and Fiscal Performance in Low-Income Countries

Dabla-Norris, Era; Allen, Richard; Zanna, Luis-Felipe; Prakash, Tej; Kvintradze, Eteri; Lledo, Victor Duarte; Yackovlev, Irene; Gollwitzer, Sophia

No. 10/81

Basel Core Principles and Bank Risk: Does Compliance Matter?

Demirgüç-Kunt, Asli; Detragiache, Enrica

IMF Working Papers and other IMF publications can be downloaded in full-text format from the Research at the IMF website: http://www.imf.org/research.