Austerity is a bad economic answer at a worse time 16 Apr 2024 While the global economy is running hot right now, the International Monetary Fund warns that long-term growth will be below its 3.8% pre-pandemic trend. The problem is, a familiar prescribed fix of budget cuts and high rates has failed in the past and would do so again today.
Why rich nations have to keep helping poorer ones 16 Apr 2024 The world faces many onerous financial and climate challenges. Still, as Axel van Trotsenburg, the World Bank’s Senior Managing Director, explains in this Exchange podcast, governments and companies in advanced economies cannot afford to stop supporting developing ones.
IMF’s Egypt bailout chooses hope over experience 11 Mar 2024 Cairo has received an $8 bln IMF loan after a $35 bln cash injection from the United Arab Emirates. If President Sisi does not justify the Fund’s optimism about reforms, a painful restructuring of the $165 bln external debt lies ahead.
World Bank and kin head for a $100 bln cash call 20 Nov 2023 Scaling up the Washington-based lender and other multilateral banks makes geopolitical sense and helps fight climate change. Sweating their balance sheets is a start. But eventually shareholders including the US will have to overcome domestic hurdles and put up more capital.
IMF’s bond vigilante script is ripe for a rewrite 10 Oct 2023 The International Monetary Fund wants politicians to close the fiscal taps. Yet it’s also warning about a sharp slowdown in global growth. Markets are worried about debt levels but without spending and investment the world will stagnate.
New boss will be EIB’s chance to stay relevant 7 Sep 2023 The European Investment Bank will soon appoint a successor to Werner Hoyer. Like peer the World Bank, it needs to find ways to take more risk with its 65 bln euros of annual lending and help the green transition. The challenge will be keeping member states and markets onside.
The next revolution in monetary policy is underway 30 Jun 2023 Central banks are grappling with rising prices and fragile financial markets, raising doubts about their focus on price stability. Recent interventions by the International Monetary Fund and Bank for International Settlements are signs of a broader rethink, says Felix Martin.
Rebuilding Ukraine: how much and who pays? 22 Jun 2023 Talk of reconstruction may seem premature with Russia still firing missiles at Kyiv. Yet that’s what policymakers and financiers gathered in London this week to debate. In this Viewsroom podcast, Breakingviews columnists discuss the cost, the timetable, and who picks up the tab.
Rebuilding Ukraine depends on luring private money 10 May 2023 International agencies and allied governments are taking care of the war-torn country’s immediate needs. An estimated $400 bln reconstruction bill, however, requires additional investors. Economic incentives and new laws would help attract them even before Russia’s invasion ends.
Politicians and policy wonks diverge on economy 20 Apr 2023 Prominent policymakers and world leaders met in Washington last week to discuss the economic outlook. In this Viewsroom podcast, Breakingviews columnists explain why US politicians are taking a rosier view of inflation and vulnerabilities in the banking sector than the IMF.
Central bank pilots risk leaving cockpit too soon 14 Apr 2023 Western policymakers at the IMF Spring Meetings hinted that their mission to slay inflation without a recession is nearly accomplished. Investors agree, and hope for rate cuts. That’s overdone. A soft landing is in sight, but so too is the danger of complacency.
Guest view: “1% for 1.5C” can power green finance 11 Apr 2023 Poorer nations pay the highest human and financial cost of climate change. Multilateral development banks should offer to lend to them at 1% to help mitigate and adapt to global warming, argues UN Climate Change High-Level Champion for COP27 Mahmoud Mohieldin.
Capital Calls: World Bank, Bumble, Wood Group 23 Feb 2023 Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.
Search for new World Bank boss flows from Barbados 20 Feb 2023 The multilateral lender needs a new president now that David Malpass is quitting early. Barbadian Prime Minister Mia Mottley’s green finance strategy offers a way to channel more lending to developing countries. Though the U.S. will have the final say, a shift is overdue.
Capital Calls: McDonald’s, Spotify 31 Jan 2023 Concise views on global finance: The burger chain’s comparable sales growth despite rising prices proves there’s pricing power at the bottom of the market; shares in the $21 bln music-streaming service leapt after founder Daniel Ek unveiled rapid subscriber growth.
Creative green finance can go a long way in 2023 23 Jan 2023 Rich democracies are keen to help the Global South fight climate change, in part for geopolitical reasons. Though they will struggle to write big cheques, there are ways to make a little cash go a long way, says Hugo Dixon. 2023 is a key year to drive these ideas over the line.
Climate fight’s main event battles sophomore slump 1 Nov 2022 COP26 put climate change centre stage in 2021, but this year war and energy crises have distracted attention. In this episode of The Exchange, the United Nations’ key COP27 players Mahmoud Mohieldin and Nigel Topping tell George Hay why the event could still make a splash.
How West can mobilise trillions to help save Earth 10 Oct 2022 On top of stopping global warming, rich nations have geopolitical reasons to help the countries in the Global South transition from fossil fuels. America’s call for the World Bank to focus more on global needs like climate change is a step in the right direction, says Hugo Dixon.
Global food crisis demands urgent Western response 25 Jul 2022 Russia’s invasion of Ukraine has pushed up food and energy costs around the globe. The most urgent problems are in poorer countries, write William Rhodes and Stuart Mackintosh. Rich nations offered insufficient help for Covid-19. International bodies can do better this time.
Ukraine needs hard cash more than debt relief 21 Jul 2022 The war-torn country needs $9 bln a month to cover its costs. Its central bank is running out of reserves. A bond payment freeze will help, but only at the margin. Western allies need to launch a coordinated aid effort to keep the country afloat.