Posts tagged IMF

Neoliberalism: Oversold?

IMF, development, economics, finance, growth, austerity, inequality, neoliberalism

Austerity policies not only generate substantial welfare costs due to supply-side channels, they also hurt demand—and thus worsen employment and unemployment. The notion that fiscal consolidations can be expansionary (that is, raise output and employment), in part by raising private sector confidence and investment, has been championed by, among others, Harvard economist Alberto Alesina in the academic world and by former European Central Bank President Jean-Claude Trichet in the policy arena. However, in practice, episodes of fiscal consolidation have been followed, on average, by drops rather than by expansions in output. On average, a consolidation of 1 percent of GDP increases the long-term unemployment rate by 0.6 percentage point and raises by 1.5 percent within five years the Gini measure of income inequality

via http://www.imf.org/external/pubs/ft/fandd/2016/06/ostry.htm

G20 countries pay over $1,000 per citizen in fossil fuel subsidies, says IMF

subsidies, economics, energy, capital, IMF, climate change, fossil fuel dependence, energy policy

Subsidies for fossil fuels amount to $1,000 (£640) a year for every citizen living in the G20 group of the world’s leading economies, despite the group’s pledge in 2009 to phase out support for coal, oil and gas. New figures from the International Monetary Fund (IMF) show that the US, which hosted the G20 summit in 2009, gives $700bn a year in fossil fuel subsidies, equivalent to $2,180 for every American. President Barack Obama backed the phase out but has since overseen a steep rise in federal fossil fuel subsidies.

http://www.theguardian.com/environment/2015/aug/04/g20-countries-pay-over–1000-per-citizen-in-fossil-fuel-subsidies-say-imf

Fossil fuels subsidised by $10m a minute, says IMF

IMF, energy, economics, policy, subsidies, climate change, fossil fuel dependence

Fossil fuel companies are benefitting from global subsidies of $5.3tn (£3.4tn) a year, equivalent to $10m a minute every day, according to a startling new estimate by the International Monetary Fund. The IMF calls the revelation “shocking” and says the figure is an “extremely robust” estimate of the true cost of fossil fuels. The $5.3tn subsidy estimated for 2015 is greater than the total health spending of all the world’s governments.

http://www.theguardian.com/environment/2015/may/18/fossil-fuel-companies-getting–10m-a-minute-in-subsidies-says-imf?CMP=share_btn_tw