Global Economic Prospects 2015

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Macroeconomic implications of the recent oil price decline

Raju Huidrom's picture
Following four years of relative stability at around $105 per barrel (bbl), oil prices have declined sharply since June 2014. It is not the first sharp oil price swing: there have been five other episodes of oil price drops in excess of 30 percent and several more episodes of oil price spikes. Over the past five decades, these steep drops and spikes have stimulated an extensive literature on the macroeconomic implications of oil price swings and the channels through which they operate.

What can history tell us about cartels in commodity markets?

John Baffes's picture
Recent developments in oil markets have led to intensive debates about OPEC’s viability and its role in the global crude oil market. OPEC, which was founded in 1960 to “coordinate and unify petroleum policies among member states”, currently accounts for about 40 percent of global crude oil production. At present, the organization has 12 active member countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, and Angola.

Global Daily: Eurozone industrial production unexpectedly contracts

Global Macroeconomics Team's picture
High Income Economies

Falling more-than-expected, U.S.first-time jobless claims dropped to 289,000 in the week ended March 7th, from the previous week's revised level of 325,000.  Economists had expected jobless claims to pull back to 309,000 from the 320,000 originally reported for the previous week.

Can Remittances Help Promote Consumption Stability?

Remittance inflows to developing countries constitute a resilient source of foreign finance. They contribute to consumption stability and can act as a counter-balance when capital flows weaken.
Remittances have numerous benefits for development. They have been associated with accelerated poverty alleviation, improved access to education and health services, and greater financial development. In addition, remittances may enable consumers to maintain their consumption levels despite illness or some other calamity, which may be critical at very low levels of income.

Global Daily: Euro slides to 12-year low on record low borrowing costs

Global Macroeconomics Team's picture
Financial Markets

The euro depreciated further against the dollar on Wednesday, slumping as much as 1.5% to a 12-year low of $1.056 before stabilizing slightly, as the ECB’s QE program continued to push the region’s bond yields down to new record lows. The single currency was broadly weaker against other major currencies, sinking to a 7-year low versus sterling at 70.145 and an 18-monh low against the yen at 128.20.