Introducing a currency in parallel to the euro could help Greece repay its external debt and resume economic activity. This second column in a two-part series evaluates the different options and their effects on aggregate demand and fiscal sustainability. The authors propose a tax credit certificates programme, which they argue could generate new spending capacity and avoid the adoption of new austerity measures.
To prevent it from defaulting on its debt, the Greek government might need to introduce a new domestic currency, in parallel to the euro. This column, the first in a two-part series, compares the current proposals for a parallel currency and discusses how such a policy instrument could promote economic recovery.
On 15-16 April 2015, the IMF organised the third conference on ‘Rethinking Macro Policy’. In this column, IMF’s Chief Economist Olivier Blanchard presents his personal takeaways from the conference. Though progress in macro policy is undeniable, confusion is unavoidable given the complex issues that remain to be settled.
Later this year, the UN will set the post-2015 Sustainable Development Goals. This column argues that having lots of targets will make it hard for policymakers to enact real change. Instead, the primary post-2015 goals should focus on young people achieving basic skills. Basic skills, in turn, will help address issues of poverty and limited healthcare as well as help foster the new technologies needed to improve sustainable growth.
Bequests have important economic and social consequences. Using a large sample drawn from the Health and Retirement Study, this column documents two results. First, about a third of US parents with wills plan to distribute their estates unequally among their children. This is especially common among families with stepchildren and children with whom the parent has little contact. Second, about 40% of parents die without wills.
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- Mastering metrics: Teaching econometrics
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- Trade-in-value-added indicators: Caveat emptor
- Behavioural development economics
- Secular stagnation: History of a heresy
- Globalisation and the gender wage gap
- Global banks turning more local
- Limits of Eurozone national risk-sharing
- The impact of fracked shale gas
- Credit access and technology adoption: Evidence from Russia
- The role of culture on democratisation
- What monetary policy committees should vote on
- Determinants of slowing investment in emerging markets
- Financing for development: The policy and research agenda
- US water use patterns
- Triggering savings among the poor
- Fiscal shocks in a globalised world
- Labour power sets the neutral real rate