Not everyone benefits equally from strong economic growth. And while most economists focus on optimizing policies to produce higher growth, economist Jonathan Ostry argues that it is how the benefits from that growth are distributed that will ultimately determine whether the growth will last. Ostry is deputy director of the IMF’s Research Department, and says the supply-side policies commonly prescribed by economists to increase growth often benefit disproportionately the wealthier segments of society and result in economies that are less resilient.
Jonathan Ostry is author of several books and articles on inequality, including Growth or Inclusion? featured in the June 2018 edition of Finance and Development Magazine. Ostry’s latest book Confronting Inequality, which he coauthored with IMF colleagues Prakash Loungani and Andrew Berg, is published by Columbia University Press.
The IMF-World Bank Annual meetings bring together people from around the world to discuss issues that affect the global economy. This year’s meetings were held in Bali, Indonesia, and one issue at the top of the agenda was the rising backlash to globalization by workers who feel they’re losing jobs to trade and immigration. Roberto Azevêdo, Director General of the World Trade Organization dispels those claims, and in this podcast, the IMF’s Camilla Andersen asks Azevêdo why he thinks international trade has been under fire of late.
PHOTO: Roberto Azevêdo, World Trade Organization’s Director General, says trade and immigration should not be blamed for employment woes. (IMF photo)
Oil prices have bounced back somewhat but the IMF's latest Regional Economic Outlook for Sub-Saharan Africa shows why energy exporters shouldn’t get too comfortable. "The level of oil prices that we see currently don’t imply growth rates in the future that are high enough, and that are anywhere near what we had seen before the oil slump.” Papa N’Diaye is head of research in the IMF’s African Department, and in this podcast, he says while the macroeconomic outlook for sub-Saharan Africa continues to strengthen–thanks to ongoing reforms and stronger global growth, growth rates still fall short of what the region really needs. N’Diaye oversaw the writing of this latest regional economic outlook.
Photo: Now What? Growth rates in sub-Saharan Africa are too low to create enough jobs for its growing labor force. (iStock by Getty Images/peopleimages).
Le dernier rapport du FMI sur les perspectives économiques régionales indique que la croissance s’accélère, grâce en partie, à la hausse du cours des produits de base. »En fin, la raison pour laquelle la croissance augmente c’est par ce que les pays exportateurs de pétrole se remettent peu à peu de ce choc avec le bénéfice des prix plus élevés du pétrole.» Papa N’Diaye, dirige la division des études régionales au département Afrique du FMI, et il dit que tandis que la perspective macroéconomique pour l'Afrique subsaharienne continue à se renforcer–merci aux réformes en cours et la croissance mondiale plus forte, les taux de croissance ne répondent toujours pas au besoin réel de la région. N’Diaye a supervisé la rédaction de cette nouvelle perspective économique régionale.
Photo: Et maintenant? La croissance en Afrique subsaharienne reste trop faible pour créer suffisamment d’emplois pour absorber l’augmentation rapide de sa population active. (iStock by Getty Images/peopleimages)
The IMF’s Global Financial Stability Report is a weather vane of sorts. It’s main objective is to spot shifting trends that could pose risks to the global financial system. Ten years ago, a volatile market and the subsequent collapse of a Wall Street investment firm led to a financial crisis that affected economies around the world. In this podcast, Fabio Natalucci says while that crisis is now well behind us, some dark clouds are gathering on the horizon. Natalucci heads the team of economists who write the overview chapter of the GFSR.
Fabio Natalucci, is Deputy Director in the IMF's Monetary and Capital Markets Department.