Is the zero lower bound no longer a hard constraint?
EU-wide strategy to address refugee crisis remains elusive
Drought leads to a spike in food prices in Africa and Latin America
Global issues
Widening divergences in global monetary policy stances
During the global financial crisis of 2008/09, the major central banks in the developed economies cut interest rates to near-zero levels. At that time, the zero lower bound on nominal interest rates was viewed as a hard constraint on monetary policy. This constraint was grounded in the premise that cash bears an implicit interest rate of zero per cent. The imposition of a negative rate?implying that the lender would pay the borrower for the…
World Economic Situation and Prospects: March 2016 Briefing, No. 88
Commodity price rout dampens regional growth prospects
China emphasized the need to improve productivity through policies on the supply side of the economy
Bank of Japan adopts a negative interest rate
Global issues
Commodity price further dampens growth prospects
The World Economic Situation and Prospects 2016 (WESP 2016), launched in December 2015, foresaw only tepid growth in the global economy in 2016. A tumultuous start to the year in global commodity and financial markets has deteriorated the outlook further. The price of Brent crude has been below $50 per barrel (pb) since mid-October 2015, and plunged to its lowest level since 2003, at just $27 pb, in mid-January 2016. The…
World Economic Situation and Prospects Monthly Briefing No. 87
The world economy stumbled in 2015 and only a modest improvement is projected for 2016/17 as a number of cyclical and structural headwinds persist. Global growth is estimated at a mere 2.4 per cent in 2015, marking a downward revision by 0.4 percentage points from the UN forecasts presented six months ago. Amid lower commodity prices, large capital outflows and increased financial market volatility, growth in developing and transition economies has slowed to its weakest pace since the global financial crisis of 2008/2009. Given the much anticipated slowdown in China and persistently weak economic performances in other large emerging economies, notably the Russian Federation and Brazil, the…
World Economic Situation and Prospects 2016: Global Economic Outlook
January Summary
Limited global financial market reaction to Fed's interest rate move
IMF includes Chinese renminbi in the SDR basket
Monetary tightening in Western Asia and Latin America in response to Fed's first rate hike in seven years
Global issues
Beginning normalization of the policy rate by the Fed elicits limited reaction in the financial market
The Federal Open Market Committee (FOMC) of the United States Federal Reserve (Fed) raised the target range for the federal funds rate by 25 basis points on 16 December, a move that had been anticipated by financial markets. The United Nations flagship publication World Economic Situation and Prospects 2016, launched on 10 December 2015…
World Economic Situation and Prospects Monthly Briefing No. 86
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