U.S. household consumption declined sharply in late 2008, marking a departure from the trend of a steady increase in U.S. consumption as a share of income since the 1980s. Combining econometric and simulation analysis, we estimate that this departure will be sustained beyond the crisis: the U.S....

We develop a micro-founded general equilibrium model with heterogeneous agents to identify pertinent constraints to financial inclusion. We evaluate quantitatively the policy impacts of relaxing each of these constraints separately, and in combination, on GDP and inequality. We focus on three...

Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience...

This Selected Issues paper reviews the extent to which growth in Ethiopia has translated into higher living standards. A key feature of the economic strategy has been an explicit commitment to poverty reduction and structural transformation. This is underpinned by the vision of a...

This paper reports on progress made on Nicaragua’s National Human Development Plan as of 2010. The operational goal for Nicaragua’s National Human Development Plan is economic growth with increased employment and reduced inequality and poverty. The results for 2007–10...

This report reviews the Priority Action Program (PAP) for Poverty Reduction Strategy Paper (PRSP) implementation in Burkina Faso. The PAP makes the PRSP operational and increases the visibility of public policies in the area of poverty reduction. The 2005–07 PAP is expected to help remove...

This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper–II for Cape Verde. Important progress was made in poverty reduction, but rural poverty still remains high. The strategy reports that Cape Verde is on track to meet the Millennium Development Goal of halving...

Namibia’s economic position has been reinforced since the last consultation. The government strategy of broadening the economic base and reducing unemployment while preserving a solid fiscal position is commended. Namibia has ensured that interest rate differentials with South Africa do...

Prospects for the future remain favorable, provided that policy actions are taken to address the risks and challenges that China faces. The government recognizes the need to contain investment and credit growth, and has tightened the monetary policy in response. Greater exchange rate flexibility...