Malaysia’s fortunes have taken a turn for the worse in recent years, both in manufacturing and across the economy in general. This column argues that the country is moving back to processing its agricultural and mineral resources, and that such ‘premature deindustrialisation’ is mostly policy driven. The biggest concern with such structural shifts is that they lead to low-productivity, low-wage manufacturing. Malaysia must address these issues and improve its business environment if it wants to realise its aspirations.
Jayant Menon, Thiam Hee Ng, Thursday, October 1, 2015 - 00:00
Barry Eichengreen, Peter Allen, Gary Evans, Monday, September 7, 2015 - 00:00
Greece needs debt restructuring. Yet, to get debt reduction, the Greek government is required to implement structural reforms. This column proposes a way to square the circle by introducing a Structural Reform Index in Greek loan contracts. The central feature of the proposal is the linkage of debt relief to progress in structural reforms. The features and conditions of the proposal should make it desirable both for Greece and the German government and other creditors.
Thomas Philippon, Monday, August 31, 2015 - 00:00
The Eurozone crisis continues to take centre stage. This column discusses how deep the EZ crisis is, how long it will last, and what should be the policy priorities. A number of findings emerge. First, the difference in labour market performance between the US and the Eurozone is one of degree but not of kind. Second, the economic consequences of the sovereign debt crisis will be mostly gone by 2018, but the political crisis will continue. Third, enforcing fiscal rules via political arm twisting is a recipe for disaster. Market discipline must instead be brought back, but without financial fragmentation. Limited and conditional Eurobonds are the best way to do so.
Tito Boeri, Juan Francisco Jimeno , Monday, July 27, 2015 - 00:00
Structural reforms of labour markets are almost universally advocated by international institutions. This column argues that some of the labour market reforms implemented in Europe during the Crisis were misguided. One problem is that when reforms are imposed on national governments by international institutions, they can backfire. To address this, the authors propose a new way to promote employment policies in Europe, which is based on positive conditionality.
Ashoka Mody, Thursday, June 18, 2015 - 00:00
The Greek crisis continues to take centre stage in policy debates. This column provides insight on the topic using evidence from three recent IMF studies. A suggested programme for Greece includes debt relief (debt equal to 50% of GDP and payable over 40 years), scaling down the banking system, and setting a flat 0.5% of GDP primary surplus over the next three years.
Andreas Müller, Kjetil Storesletten, Fabrizio Zilibotti, Wednesday, May 27, 2015 - 00:00
In the policy circles, there are confronting positions regarding Greece’s assistance programme and the structural reforms it should implement. This column argues that the best response is pragmatism and sequential compromise. Efficiency requires an assistance programme providing the country with debt relief with an intervention of an institution such as the IMF. Thus, misconceived economic principles could bring large welfare losses for Greece and renewed financial instability in the Eurozone.
Jean Pisani-Ferry, Friday, November 7, 2014 - 00:00
Charles A.E. Goodhart, Philipp Erfurth, Monday, November 3, 2014 - 00:00
Ramon Xifré, Friday, September 12, 2014 - 00:00
Christopher Findlay, Silvia Sorescu, Camilo Umana Dajud, Friday, August 29, 2014 - 00:00
Marco Buti, Philipp Mohl, Wednesday, June 4, 2014 - 00:00
Investment in the Eurozone is forecast to remain below trend until 2015, with a particularly large shortfall in the periphery. Low investment reduces aggregate demand, thus lowering short-term growth, and it also hampers medium-term growth through its effect on the capital stock. This column highlights three causes of low Eurozone investment – reduced public investment, financial fragmentation, and heightened uncertainty – and proposes a series of remedies.
Marco Buti, Maria Demertzis, João Nogueira Martins, Sunday, March 30, 2014 - 00:00
Although progress has been made on resolving the Eurozone crisis – vulnerable countries have reduced their current-account deficits and implemented some reforms – more still needs to be done. This column argues for a ‘consistent trinity’ of policies: structural reforms within countries, more symmetric macroeconomic adjustment across countries, and a banking union for the Eurozone.
Natasha Xingyuan Che, Antonio Spilimbergo, Wednesday, July 11, 2012 - 00:00
A major cause of the Eurozone crisis is the difference in income and productivity between the core and the periphery. This column presents evidence suggesting that structural reforms can be instrumental in fostering the development of lagging regions within a country. It argues that this in turn can accelerate the rate of convergence across countries within a currency union.
Lúcio Vinhas de Souza, Friday, June 13, 2008 - 00:00
Russia has enjoyed impressive economic performance in recent years. This column takes stock of its success, identifies its growth drivers, and highlights the need for microeconomic and structural reforms.