To help resolve conflicts, the rules-based multilateral trading system should be strengthened and modernized to encompass areas such as digital services, subsidies, and technology transfer.
Countries with fiscal space should invest in physical and social infrastructure to raise potential growth.
Fiscal policy should balance growth, equity, and sustainability concerns, including protecting society's most vulnerable.
Across all economies, the imperative is to take actions that boost potential output, improve inclusiveness, and strengthen resilience.
There is a need for greater multilateral cooperation to resolve trade conflicts, to address climate change and risks from cybersecurity, and to improve the effectiveness of international taxation.
Where fiscal space is low, fiscal policy needs to adjust in a growth-friendly manner to ensure public debt is on a sustainable path, while protecting the most vulnerable.
Rather than waiting for a crisis to erupt before intervening, the IMF should provide 'forward guidance' on how it will tackle potential disruptions in international financial markets.
If a debt crisis results from government profligacy and mismanagement, rather than from a market failure, it is true that the central bank should not intervene.
In reality, while currency movements can have a significant impact on inflation in other countries, dollar movements have rarely had a meaningful or durable impact on prices in the U.S.
Fiscal policy is a very important part of the tool kit for policy makers.
There are limits to how much countries can spend.
Harvard is famous for being an 'absorbing state' for faculty with almost no one leaving it for another institution, which is why the decision of granting tenure is a life long commitment.
The term neo-liberal does not have a good definition. It's mostly used when you are angry with somebody or dislike someone, you call them a neo-liberal. Because otherwise, there is no concrete definition to the term.
I am purely a technocrat and I reject all ideological labels.
I am a trained economist.
It is important for India to stay the course on fiscal consolidation.
Recapitalization has helped in many parts of the world.
Being born into a Malayali family that followed a matriarchal system, I always felt loved and had a high sense of self-worth.
Being born a girl in India, it matters a lot what family you are born into.
If you waive loans, it will encourage everyone to opt for more as they think they can get away with it in future.
