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Tag Archives: OECD

Chart of the weekCorporate Tax Rates: How Low Can You Go

By IMFBlog In life, two things are certain: death and taxes, the saying goes. Unless you are a large multinational corporation, in which case, maybe not.  Over the past 30 years, corporate tax rates in all countries have fallen to very low levels, as we show in our chart of the week. This is a problem on several fronts and is one of the reasons why a new approach to international corporate taxation is urgent. First, the ease with which multinationals seem able to avoid tax, combined with...

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Chart of the weekTrade Balances Mostly Driven by Economic Forces, Not Tariffs

By IMFBlog Español, Português Over the past two decades, most of the changes in bilateral trade balances—the difference in the value of exports and imports between two countries—were explained by macroeconomic factors, according to IMF research. These factors include fiscal policy, demographics, and weak domestic demand. They may also include exchange rate policies and domestic supply-side policies, like subsidies to state-owned enterprises or to export sectors. In contrast, changes in...

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Chart of the WeekCorruption and Your Money

By IMFBlog The costs of corruption run deep. Your taxpayer dollars are lost in different ways, siphoned off from schools, roads, and hospitals to line the pockets of people up to no good. Equally damaging is the way it corrodes the government’s ability to help grow the economy in a way that benefits all citizens. And no country is immune to corruption. Our Chart of the Week from the Fiscal Monitor analyzes more than 180 countries and finds that more corrupt countries collect fewer taxes,...

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Tackling Income Inequality Requires New Policies

By IMFBlog Español, Português The hollowing out of the middle class, rising social and political tension, lack of education, globalization, and rapid technological change are just a few of the many drivers of growing income inequality. “Inclusive growth is one of the critical challenges of our time,” IMF Managing Director Christine Lagarde said at a recent event on income inequality at the IMF Spring Meetings. “The bitter-sweet reality is that despite economic growth there are...

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Corporate Taxation in the Global Economy

By Christine Lagarde The public perception that some large multinational companies pay little tax has led to political demands for urgent action. It is not difficult to see why.  Let me highlight three reasons why a new approach to international corporate taxation is urgent. First, the ease with which multinationals seem able to avoid tax, and the three-decade long decline in corporate tax rates, undermines faith in the fairness of the overall tax system. Second, the current situation is...

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Chart of the Week: Trade’s Impact on Brazil’s Industries

By Antonio Spilimbergo (Español, Português) Brazil’s economy is very closed, and the government is working to open the country to more trade. Currently, Brazil’s trade flows—exports plus imports—average a minimal 25 percent of its GDP—making the country one of the least open amongst G20 countries. As this chart of the week shows, from a chapter by Goés et al. in our book Brazil: Boom, Bust, and the Road to Recovery, we use a heatmap to divide the country into 558 regional groups to...

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Cashing In: How to Make Negative Interest Rates Work

By Ruchir Agarwal and Signe Krogstrup Many central banks reduced policy interest rates to zero during the global financial crisis to boost growth. Ten years later, interest rates remain low in most countries. While the global economy has been recovering, future downturns are inevitable. Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond. To get around...

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The Uneven Path Ahead: The Effect of Brexit on Different Sectors in the UK Economy

By Jiaqian Chen December 4, 2018 中文, Русский A UK border agency worker holds a passport: As a member of the European Union, free labor mobility has enabled the UK to hire talent from across the EU (photo: Mac Gregor/Reuters/Newscom) The United Kingdom is set to leave the European Union in March 2019. Our research suggests that all likely Brexit outcomes will entail an economic cost for the UK, and these costs would be unevenly spread across different sectors and regions. The UK’s...

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A Planet at Risk Requires Multilateral Action

Signe Krogstrup and Maurice Obstfeld  December 3, 2018 Español, Português A wolf in the snow: the planet isn’t crying wolf as man’s economic activities reach a scale where the global climate is at risk (photo: ImageBroker/ David MichaSheldon/Newscom) The COP-21 Paris Agreement limiting greenhouse gas emissions was a major achievement on the road to meeting the threat of climate change. But as the evidence becomes increasingly unambiguous that human activity is destabilizing the...

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Lasting Effects: The Global Economic Recovery 10 Years After the Crisis

By Wenjie Chen, Mico Mrkaic, and Malhar Nabar October 3, 2018 عربي,中文, Español, Français, Baˈhasa indoneˈsia, Português, Русский Woman cleaning in Berlin, Germany: the 2008 global financial crisis has had long-lasting effects on economic growth (photo: Caro/Olaf Jandke/Newscom) In the year following the 2008 financial crisis, economic activity declined in half of all countries in the world. Our analysis in Chapter 2 of the October World Economic Outlook shows that in many countries...

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