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Macroeconomic Management

Remittances Rebound but Pressures Persist

Otaviano Canuto's picture

Remittances, or the money migrant workers send home to their countries of origin, are finally recovering to pre-crisis levels. In 2010, remittance flows to developing countries reached $325 billion, and they are poised to continue growing sustainably through 2013, according to the World Bank’s latest Outlook for Remittance Flows 2011-13.

The Cost of Financial Reform for Emerging Markets

Otaviano Canuto's picture

In the aftermath of the global economic crisis, financial market regulators have proposed a myriad of reforms to better govern the banking sector and to enhance its resilience to future shocks. In fact, in September 2010, a number of measures were agreed upon by the Basel Committee on Banking Supervision, an international forum designed to foster cooperation and develop standards on banking supervisory matters.

Why Official Bailouts Tend Not to Work: An Example Motivated by Greece 2010

Brian Pinto's picture

A newsclip in the DECPG Daily dated April 19, 2010, noted: “After Greek aid talks were delayed by disrupted air travel, Greek bond premiums relative to German bunds spiked again on Monday.  Air travel disruptions caused by Iceland’s recent volcanic eruption delayed the start of talks on a potential bailout package....

Frontiers in Development Policy: the Role of Macro-Prudential Policies

The devastating impact of the global financial crisis, which consequently turned into a global economic crisis, created a consensus that pre-crisis financial regulation didn’t take the “Big Picture” of the system as a whole sufficiently into account. As a result, according to the views of many, supervisors in many markets “missed the forest for the tress”.

Delivering Aid Differently

Otaviano Canuto's picture

There has been an ongoing debate on the future need for foreign aid—a debate made ever more crucial by the current budget constraints in many countries as a result of the financial crisis. Some contend that aid budgets should be ramped up to counter the continued existence of severe poverty in the world; others argue that aid has been ineffective in the past, and in some cases, stymied growth in developing countries.

How Public Spending Can Help You Grow

Otaviano Canuto's picture

Last week’s State of the Union underscored the debate surrounding public spending as a measure to stimulate economic growth. President Barrack Obama argued that to “win the future” the US needs to make significant public expenditures to update the country’s infrastructure, health, and educational systems. The opposite view is that economic growth can only occur through decreased public spending and private sector growth.

Such varied opinions on public expenditures do not exist in the US alone—the debate is global. From the US to the UK, from Europe to Africa, from Latin America to Southeast Asia, to spend or not to spend is a question faced everywhere.

Beyond the epicenter of the economic crisis—the US and Western Europe—public spending has had an indeterminate effect on


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