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Tag Archives: Debt

Dangerous Global Debt Burden Requires Decisive Cooperation

By Vitor Gaspar and Ceyla Pazarbasioglu With elevated risks to sovereign debt, a global cooperative approach is necessary to reach an orderly resolution of debt problems and prevent defaults. We live in dangerous times. The world faces renewed uncertainty, as war comes on top of an ever-changing and persistent pandemic, now in its third year. Moreover, problems that predated COVID-19 have not gone away. When policymakers return to Washington in the coming days for the Spring Meetings of the...

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Emerging Economies Must Prepare for Fed Policy Tightening

By Stephan Danninger, Kenneth Kang and Hélène Poirson 中文, Español, Русский Policymakers may need to react by pulling multiple policy levers, depending on Fed actions and their own challenges at home. For most of last year, investors priced in a temporary rise in inflation in the United States given the unsteady economic recovery and a slow unravelling of supply bottlenecks. Now sentiment has shifted. Prices are rising at the fastest pace in almost four decades and the tight labor market has...

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IMF Podcasts: The Year in Review

The past year has brought us new challenges even as the old ones persist. If anything, the ongoing pandemic has taught us to think differently about tackling the challenges and questions we currently face when it comes to big issues like climate change, gender equality, inflation and economic measurement. In this editor’s pick of 10 podcasts from the past year, we present (in no particular order) conversations with top thinkers on a range of topics and issues that we will continue to confront...

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The G20 Common Framework for Debt Treatments Must Be Stepped Up

By Kristalina Georgieva and Ceyla Pazarbasioglu With the debt service suspension initiative expiring and interest rates poised to rise, low-income countries will find it increasingly difficult to service their debts. Despite significant relief measures brought on by the COVID-19 crisis, about 60 percent of low-income countries are at high risk or already in debt distress. In 2015 that number was below 30 percent. With policy space tightening for highly indebted countries, the framework can...

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Sovereign Domestic Debt Restructuring: Handle with Care

By Peter Breuer, Anna Ilyina, and Hoang Pham Restructuring domestic debt is like surgery: You only do it if you must, and you avoid it if it might do more harm than good. With rising debt vulnerabilities and growing stocks of sovereign domestic debt in emerging and developing economies, the questions of when and how to restructure such debt are now more acute than ever.  Restructuring domestic debt is a tool that can be used by sovereigns facing fiscal and economic stress. Over the past two...

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Unequal Distribution of Delinquencies by Gender, Race, and Education

Ruchi Avtar, Rajashri Chakrabarti, and Kasey Chatterji-Len This post is the second in a three-part series exploring racial, gender, and educational differences in household debt outcomes. In the first post, we examined how the propensity to take out household debt and loan amounts varied among students by race, gender, and education level, finding notable differences across all of these dimensions. Were these disparities in debt behavior by gender, race, and education level associated with...

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Joint Action Needed to Secure the Recovery

By Kristalina Georgieva  中文, Español, Français, Italiano, 日本語, Português, Русский G20 should lead in sharing vaccine doses, helping developing countries financially, and committing to reaching net-zero carbon emissions by mid-century. When G20 leaders gather in Rome this weekend, they can take inspiration from the bold design of the meeting venue, known as La Nuvola. Just as the architect created a striking new space, global leaders must take bold action now to end the pandemic and create...

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Fiscal Policy for an Uncertain World

By Vitor Gaspar, Sandra Lizarazo, Paulo Medas, and Roberto Piazza  中文,  Español, Français, 日本語, Português, Русский As public debt rises to record levels, countries need to calibrate fiscal policies to their own unique circumstances. Vaccination has saved lives and helped economic recovery in many countries, but uncertainty remains high amid new virus variants. The pandemic will leave a lasting mark on inequality, poverty, and government finances, our latest Fiscal Monitor finds. With the...

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When It Comes to Public Finances, Credibility Is Key

By Raphael Espinoza, Vitor Gaspar, and Paolo Mauro عربي, Español, 日本語, Português, Русский Ending the health crisis and addressing its immediate fallout remains the top priority, but governments would also benefit from committing to fiscal responsibility. From the outset of the COVID-19 pandemic, governments have extended massive fiscal support that has saved lives and jobs. As a result, public debt has reached a historic high, although it is expected to decrease marginally in the next few...

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The Next Move: Consequences for Emerging Markets

By Gita Bhatt We focus this issue of Finance & Development on the road ahead for emerging markets, a label frequently applied to economies in the middle—neither advanced nor low-income. Because of their growing systemic relevance, this group of countries helps anchor global stability. Yet, as we drill down and define their characteristics, we find a widely diverse set of economies of varying sizes and growth rates that face different prospects, priorities, and challenges. Some, like...

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