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Tag Archives: Covid-19

Who Are the Federal Student Loan Borrowers and Who Benefits from Forgiveness?

Jacob Goss, Daniel Mangrum, and Joelle Scally The pandemic forbearance for federal student loans was recently extended for a sixth time—marking a historic thirty-month pause on federal student loan payments. The first post in this series uses survey data to help us understand which borrowers are likely to struggle when the pandemic forbearance ends. The results from this survey and the experience of some federal borrowers who did not receive forbearance during the pandemic suggest that...

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What Might Happen When Student Loan Forbearance Ends?

Rajashri Chakrabarti, Jessica Lu, and Wilbert van der Klaauw Federal student loan relief was recently extended through August 31, 2022, marking the sixth extension during the pandemic. Such debt relief includes the suspension of student loan payments, a waiver of interest, and the stopping of collections activity on defaulted loans. The suspension of student loan payments was expected to help 41 million borrowers save an estimated $5 billion per month. This post is the first in a two-part...

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Chart of the WeekGlobal Economic Uncertainty, Surging Amid War, May Slow Growth

By Hites Ahir, Nicholas Bloom and Davide Furceri As the war in Ukraine unfolds, global uncertainty has surged, according to the latest reading of the World Uncertainty Index—a quarterly measure across 143 countries. This increase is a bad sign for growth. Our research finds that such increases foreshadow significant output declines. Based on our estimates, the rise in uncertainty in the first quarter could be enough to reduce full-year global growth by up to 0.35 percentage point. While...

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Tax Coordination Can Lead to a Fairer, Greener Global Economy

By Vitor Gaspar, Shafik Hebous, Paolo Mauro عربي, 中文, Español, Français, 日本語, Português, Русский Cooperation across countries can raise revenue, tackle inequality, and fight climate change. Technology, globalization, and global warming have changed the world, and taxation must keep pace. With a mouse click, individuals can move money across borders and corporations can transact with their affiliates across global supply chains. Production depends on intangible know-how assets that can be...

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Global Trade Needs More Supply Diversity, Not Less

By Davide Malacrino, Adil Mohommad, and Andrea Presbitero عربي, 中文, Español, Français, 日本語, Português, Русский Countries with trade partners that implemented more stringent lockdowns had a sharper drop in imports. Though trade flows have adjusted, more diversified global value chains could help lessen the impact of future shocks. The demand and supply shocks unleashed by the pandemic were expected to lead to a dramatic collapse in trade, but international commerce has proven more resilient...

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The Fed’s Balance Sheet Runoff and the ON RRP Facility

Marco Cipriani, James Clouse, Lorie Logan, Antoine Martin, and Will Riordan A 2017 Liberty Street Economics post described the balance sheet effects of the Federal Open Market Committee’s decision to cease reinvestments of maturing securities—that is, the mechanics of the Federal Reserve’s balance sheet “runoff.” At the time, the overnight reverse repo (ON RRP) facility was fairly small (less than $200 billion for most of July 2017) and was not mentioned in the post for the sake of...

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How Africa Can Navigate Growing Monetary Policy Challenges

By Tobias Adrian, Gaston Gelos, and David Hofman Tools such as foreign exchange intervention can ease the effects of shocks but need to be carefully weighed against potential longer-term costs. Sub-Saharan African countries face important monetary policy challenges. The pandemic dented economic growth, and even now the recovery is likely to leave output below the pre-crisis trend this year. Several countries in the region have also seen inflation increase, a challenge that is in some cases...

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Personal Income Tax Has Untapped Potential in Poorer Countries

By Dora Benedek, Juan Carlos Benítez, and Charles Vellutini Developing countries have shown remarkable progress in using the personal income tax. Many governments aiming to achieve a durable economic recovery from the pandemic must raise significant amounts of revenue in the fairest way possible. The personal income tax—levied on wages, salaries, and other income—is a suitable instrument for this challenge. In new research, we examine the scope for making greater use of this fiscal tool in...

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Pandemic’s E-commerce Surge Proves Less Persistent, More Varied

By Joel Alcedo, Alberto Cavallo, Bricklin Dwyer, Prachi Mishra, and Antonio Spilimbergo Spikes in the share of online spending are dissipating overall, but there’s significant variation by industry There’s no doubt that e-commerce helped many navigate the pandemic, from online shopping to curbside pickup to food delivery. But as we slowly emerge from lockdowns and other restrictions, it’s less clear how this shift to digital commerce may evolve across economies and industries. This raises...

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Chart of the Week Gender Budgeting Is More Widespread But Implementation Remains a Challenge

By Teresa Curristine, Nino Tchelishvili and Sureni Weerathunga The pandemic has deepened long-standing gender gaps, with women continuing to bear the burden of unpaid work. By structuring spending and taxation in ways that advance gender equality—a process called gender budgeting—governments can help close the gap. In recognition of International Women’s Day on March 8, the Chart of the Week takes stock of gender budgeting practices in Group of Twenty countries using data from a recent IMF...

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