How Occupational Licensing Undermines Labor Fluidity

How Occupational Licensing Undermines Labor Fluidity

photo: yy yeung A healthy economy requires a fluid labor market. Even when total employment and output are stable, the labor market is in constant motion. Jobs disappear when firms close or downsize. Other jobs appear when new firms open or old ones expand. People move freely from one job to another in search of career […]

The Duterte Whirlwind: The Reawakening of the Philippines

The Duterte Whirlwind: The Reawakening of the Philippines

photo: canencia The new Philippine president is waging a tough drug war, pushing economic growth domestically and greater pragmatism in foreign policy that could contribute to Southeast Asia’s future. Internationally, Rodrigo Duterte, the new president of the Philippines, has been portrayed as a “dangerous populist”. That’s a gross caricature. In the elections, he leaned on the […]

Derisking Threatens Caribbean Banking Sector and Trade

Derisking Threatens Caribbean Banking Sector and Trade

Allan Wright, country economist for The Bahamas at the Inter-American Development Bank, discusses the impact of derisking strategies on the Caribbean: Q: What is derisking? A: Derisking is the termination of or the restriction of business relationships to avert risk related to money laundering and terrorist financing, according to a definition by the Financial Action Task Force (FATF), […]

What If Clinton Wins

What If Clinton Wins

photo: Getty Images According to polls, the race to the White House is over. Clinton has won, Trump has lost. If that proves the case, US economic erosion will slow but imperial foreign policy may escalate, which has critical repercussions in Asia. The polls reflect the new status quo. Despite her high unfavorability ratings, Clinton […]

Global Outlook: The Next Five Years

Global Outlook: The Next Five Years

Global outlook: the next five years Alessandro Magnoli Bocchi Key takeaway – Over the next five years, mega-trends will not support an acceleration of global growth. Consumption, investment and productivity will remain sluggish, inflation low. Macro fundamentals are weak: high debt and unemployment will constrain performance. Developed markets (DMs) will stagnate and emerging markets (EMs) […]

Capital Flows and Financial Activity in Commodity Exporters

Capital Flows and Financial Activity in Commodity Exporters

photo: Nic Taylor Emerging markets and developing economies have struggled in recent years to regain the growth rates of the last decade before the global financial crisis. The slowdown has been particularly evident in commodity-exporters that face declining prices. The World Bank’s most recent Global Economic Prospects, for example, projects growth for those countries of only 0.4% […]

Italy at the Brink: From Renzi’s Referendum to Italexit?

Italy at the Brink: From Renzi’s Referendum to Italexit?

photo: Davide Oliva Europe’s Summer of Discontent                                In the aftermath of the Brexit tensions, Italy is defying Brussels to bail out troubled banks and preparing for constitutional referendum in October. If Prime Minister Matteo Renzi fails to achieve adequate support, economic destabilization will shift from the UK to Italy – which could […]

Tales of Emerging Markets

Tales of Emerging Markets

Emerging market economies (EM) as a special class of financial assets have recently been subject to two competing tales. On the one hand, there is evidence of continued financial deepening and further integration within the global financial system, while the offer of higher yields remains hard to find elsewhere. On the other hand, there are […]