Geoeconomic fragmentation may have major implications for the global economy. This column uses using a multi-country New Keynesian model to analyse the effects of various fragmentation sources, including tariffs on goods and commodities, as well as taxes on capital flows. Results indicate that the economic impact of fragmentation differs by region. Countries belonging to a […]
Unanticipated debt increases hinder growth and drive inflation in emerging markets. Fiscal frameworks and buffers, consolidation strategies, and coordinated policies can mitigate these challenges and bolster resilience. The accumulation of debt in emerging market economies increased markedly in the decade after the global financial crisis of 2007-08 due to lower global interest rates during that […]
External debt of low- and middle-income countries (LMICs) touched a record US$8.8 trillion in 2023, while debt servicing costs for LMICs also reached an all-time high. That’s according to the 2024 edition of the International Debt Report, the World Bank’s premier annual publication on debt. For five decades the IDR, along with the associated International Debt Statistics (IDS) database, […]
