Why Countries Must Cooperate on Carbon Prices
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Central banks must continue to raise interest rates to rein in inflation even as it becomes harder to predict whether the global economy will slide into recession next year, the IMF’s Managing Director Kristalina Georgieva said on Wednesday.
Speaking to Bloomberg’s Francine Lacqua on the sidelines of a United Nation’s General Assembly meeting in New York, Georgieva said that China’s growth is slowing and some European economies may be in recession already.
“Whether we meet the technical definition of recession or not, I do expect that for hundreds of millions of people it will feel like recession.”
Even so, Georgieva said price stability was of paramount importance. Without it, global growth would slow and those with the lowest incomes would suffer the most.
“Inflation is a tax upon the poor.”
đź“ş Watch the full interview, which also covers debt, emerging markets and climate change. The Managing Director also appeared on a New York Times climate panel. Watch here.
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Sub-Saharan Arica’s inequalities widened during the pandemic, with the region’s least-resilient economies and lowest-skilled informal workers bearing the brunt, IMF Deputy Managing Director Antoinette Sayeh told a conference on Tuesday.
Sub-Saharan Africa is also expected to rebound from the pandemic more slowly than the rest of the world, Sayeh said in a speech to the conference of African and Latin American nations.
“Sustained inequality can also leave long-lasting scars and undermine economic, social and political stability.”
Many economies in sub-Saharan Africa grew at a record pace before the pandemic. But, as the IMF’s Habtamu Fuje and Jiaxiong Yao write in a blog that analyses satellite images of the Earth’s nighttime lights, it is less clear whether the gains in economic growth have been shared equally across regions.
Read all the material presented at the conference here, including perspectives from Brazil, Mozambique and Senegal.
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Crypto assets have been around for more than a decade, but it’s only now that efforts to regulate them have moved to the top of the policy agenda, write the IMF’s Aditya Narain and Marina Moretti in F&D.Â
The regulatory fabric is being woven, and a pattern is expected to emerge. But the worry is that the longer this takes, the more national authorities will get locked into differing regulatory frameworks.
“A global regulatory framework will bring order to the markets, help instill consumer confidence, lay out the limits of what is permissible, and provide a safe space for useful innovation to continue,” Narain and Moretti write.
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This article appears in the September 2022 edition of F&D Magazine—THE MONEY REVOLUTION: CRYPTO, CBDCs, AND THE FUTURE OF FINANCE.
In this edition, F&D delves into Crypto and CBDCs by drawing on cutting-edge research and analysis from economists and other leading experts including AgustĂn Carstens, Eswar Prasad, Ravi Menon, Tobias Adrian and many others.
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