Growth in emerging economies – and developing countries in general – has exhibited strong resilience to the downward pull from advanced economies. However, its full potential can only be tapped if all boats are lifted; if advanced economies also find how to ascend after declining.
After the Second World War, advanced economies began an ambitious process toward capital account liberalization, which prioritized the liberalization of trade, the maintenance of fixed exchange rates, and a…
With a few exceptions, industrialized nations are still struggling with unemployment, unable to recover completely from the 2008 economic crisis. In the U.S. things seem to be improving as…
The great recession of 2007-09 has left permanent scars in the world economy, and the global recovery has lost steam. Advanced economies are still struggling with high unemployment and debt, and the remarkable role that emerging markets have played as engines of the recovery is no longer certain. In this new book, co-edited by Otaviano Canuto and Danny M. Leipziger, more than a dozen distinguished contributors scan the economic horizon, spell out the new fiscal reality, and highlight the policy choices on which economic regrowth will depend.
Investing more on roads, bridges and schools is an essential part of President Obama's American Jobs Act. If this is important in the current U.S. context, the role of…
Market volatility, fears of a double-dip, lack of investor confidence and social demonstrations from Wall Street to Main Streets around the world are just some of the headlines we…
Globalisation has created interdependencies between EMEs and advanced economies (AEs) that are here to stay, and will continue to count heavily on the economic outcomes of both groups. Understanding and taking action on those two factors as they develop will be essential for policy makers and investors. Differentiation among EMEs in their potential for continuous growth and stability will depend on those actions.
VoxEU Sovereign ratings are important for countries to access international capital, but even today 58 developing countries are not rated by Standard and Poor’s, Moody’s, or Fitch. This column…
The “middle-income trap” has snared many developing countries: they succeeded in evolving from low per capita income levels, but then appeared to stall, losing momentum along the route toward the higher income levels of advanced economies. Does moving up the income ladder get harder the higher one climbs?
The world of presumed stable monetary and financial conditions was severely shaken by the recent global financial crisis. And with that, the separation in some quarters of financial supervision…
In the aftermath of the global economic crisis, financial market regulators have proposed a myriad of reforms to better govern the banking sector and to enhance its resilience to…
Project Syndicate Not long ago, the separation of financial supervision and monetary policy was in vogue in many countries. Some countries – like the United Kingdom and Australia – went…
While the rich world puts its post-crisis house in order, developing countries as a whole are becoming the new engine of global growth. But switching locomotives is never free of risk.
Developing countries are emerging as the new engine of global growth, but this success has led to new challenges that policy makers must overcome if their countries are to continue driving the world economy forward.
The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World (at the Wilson Center) https://youtu.be/bAu0GhuwX7Y Economists Otaviano Canuto (right) and Marcelo Giugale pointed to a major…