(AGENPARL) - Roma, 11 Novembre 2022 - (AGENPARL) – ven 11 novembre 2022 The latest IMF analysis of global economics, finance, development and policy issues shaping the world. []
[IMF Weekend Read]
Dear Colleague,
In today’s edition, we focus on global policy challenges discussed at the IMF’s annual research conference, IEA chief Faith Birol’s call for clean energy in an article for Finance & Development magazine, global fragmentation and risks to world trade, the Middle East’s greenhouse gases, sub-Saharan Africa’s economic outlook, Asia’s digital payments, taxes and elections, and much more.
Global Economy
Why Countries Must Cooperate on Carbon Prices
(IMF)
Policymakers face a particularly challenging set of problems as they respond to shock after shock, from Russia’s invasion of Ukraine to rising debt vulnerabilities and exchange-rate volatility, Kristalina Georgieva said at the start of the IMF’s annual research conference on Thursday.
“Although the priority must be to protect vulnerable households with targeted measures to alleviate the impact of rising food and fuel prices, it should not do so in ways that further fuel inflation and sidetrack the efforts of monetary policy.”
“Improving cooperation and the constructive resolution of disputes is a key challenge.”
Middle East and Central Asia
Most Urgent Challenges
(COP27)
Countries in the Middle East and Central Asia must choose fiscal strategies that help them meet commitments to curb greenhouse-gas emissions while limiting the disruptions to their economies.
One option is to raise fossil fuel prices, by removing of fuel subsidies and introducing a carbon tax of $4 to $8 per ton of CO2 emissions. Another option is to accelerate the energy transition by increasing investment in renewables. But significant public spending could weaken fiscal positions and macroeconomic stability, leaving fewer resources available to future generations.
As Azour writes, “Countries should choose an option that best suits their circumstances and the available budget resources.”
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Massive investment in clean energy—including energy efficiency, renewables, electrification, and a range of clean fuels—is the best guarantee of energy security in the future and will also drive down harmful greenhouse gas emissions, he writes.
“A new global energy economy is emerging, and the governments and businesses that invest early and wisely stand to reap the benefits.”
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WEEKLY ROUND-UP
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Nick Owen
Editor
IMF Weekend Read
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