Jan Hanousek, Anna Kochanova, 04 May 2015

The evidence about the effect of bribery on economic growth is mixed. Some find it harmful while others believe it helps via a ‘grease the wheels’ effect. This column argues that the ambiguity can be explained by divergent effects of the mean and dispersion of corruption. A high bribery-mean retards productivity growth of firms, but a high bribery-dispersion facilitates performance of weak firms.

Joshua Aizenman, Yothin Jinjarak, Huanhuan Zheng, 04 May 2015

China’s export-led growth has coincided with the country becoming one of the largest net global creditors. This column looks ahead to the next chapter of Chinese ‘outwards mercantilism’ – FDI investment in natural resources, commodities and mining bundled with access to finance and the export of Chinese capital products and labour services.

Patrick Minford, 03 May 2015

The financial system – especially banks – is generally blamed for the Great Recession. This notion has been used to justify the adoption by central banks of several new monetary policy functions, such as financial stability and macro-prudential policies. This column argues that the financial crisis was just one component of the Great Recession and that central banks are largely responsible, given their failure to prevent banks’ liquidity difficulties from overflowing into the economy. It suggests that central banks should pay attention to stabilising monetary policy and scale back the new policies of direct regulation.

Tomohiko Inui, Makiko Nakamuro, Kazuma Edamura, Junko Ozawa, 02 May 2015

In order to achieve sustainable growth, Japan should make an efficient use of its labour force. However, female labour force participation and the share of women in leading positions in Japan remain low. This column investigates the impact of board diversity on firms’ innovative activity using Japanese firm-level data. The findings suggest that board diversity is associated with innovation only for firms that have already acquired diverse management skills.

Olivier Blanchard, 01 May 2015

Complex forces are shaping macroeconomic evolutions around the world. In this column, IMF’s Chief Economist Olivier Blanchard describes some of these forces and provides an overview of the state of the world economy. Putting the forces together, the baseline forecasts are that advanced countries will do better this year than last, and emerging countries will slow down. Overall, the global growth will be roughly the same as last year, with the macroeconomic risks having slightly decreased.  

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