reforms, how can politicians navigate the issue, and even manage to get re-elected given the risk of vocal opposition from the losers?
Recognizing that structural reforms may generate growth-equity tradeoffs, Jonathan Ostry’s new paper analyzes the impacts of reforms on both growth and inequality. He finds that a lot depends on what type of reform is being considered. Domestic financial deregulation, external capital market liberalization, and some measures of currentaccountreformincrease both growth and inequality. But basic institutional reforms that, for
IMF Research Perspective (formerly published as IMF Research Bulletin) is a new, redesigned online newsletter covering updates on IMF research. In the inaugural issue of the newsletter, Hites Ahir interviews Valeria Cerra; and they discuss the economic environment 10 years after the global financial crisis. Research Summaries cover the rise of populism; economic reform; labor and technology; big data; and the relationship between happiness and productivity. Sweta C. Saxena was the guest editor for this inaugural issue.