The modern economy of the Republic of Djibouti is based on rents directly or indirectly originating from the international port of Djibouti and from the country’s strategic position. The Poverty Reduction Strategy Paper discusses that the growth recorded over the last five years is essentially driven by the increase in foreign direct investment—but especially by the activities of the Port of Djibouti. The informal economy constitutes a major proportion of the economic activities of Djibouti and provides a livelihood for much of the Djibouti population.

Although the theoretical relationships are ambiguous, evidence suggestsa strong link between the choice of the exchange rate regime and economicperformance. the paper argues that adopting a pegged exchange rate canlead to lower inflation, but also to slower growth in productivity. Itfinds that on average per capita GDP growth was slightly faster underfloating regimes than under pegged exchange regimes.

This note documents slow economic growth and significant delays in reform implementation owing to continued political instability and conflict. The annual progress report (APR) reviews progress in the power sector, but does not mention some critical challenges. It outlines some progress in public sector reforms and private sector development. The APR analyzes the impact on disadvantaged groups of several government of Nepal’s programs, but recognizes a decrease in spending for targeted programs. Progress has been made in finalizing and launching of a framework for monitoring and evaluation.

This paper reviews economic developments in Myanmar during the 1990s. The economic performance of Myanmar in the 1990s has fallen short of other countries in the region. The Asian crisis has had an unexpectedly limited impact on Myanmar. Following the floating of the Thai baht in June 1997, the free market exchange rate depreciated rapidly, leading to a surge in inflation. Other effects of the crisis have included a slowing in growth of tourist arrivals and delayed receipt of gas export revenues.

The IMF's 2012 Annual Report chronicles the response of the Fund's Executive Board and staff to the global financial crisis and other events during financial year 2012, which covers the period from May 1, 2011, through April 30, 2012. The print version of the Report is available in eight languages (Arabic, Chinese, English, French, German, Japanese, Russian, and Spanish), along with a CD-ROM (available in English only) that includes the Report text and ancillary materials, including the Fund's Financial Statements for FY2012.

The macroeconomic environment of Japan has constantly been under pressure owing to rising public debt and fiscal deficits. Credit demand has been limited and has shown weak profitability. Growing risks have heightened concerns about a possible feedback to financial stability. This report summarizes the findings of the financial sector stability assessment of Japan. The Executive Board recommends a broad-based financial reform plan that could contribute to private sector growth. Suggested measures included allocating market-based credit to SMEs, improving the framework for capital markets, and consolidating and streamlining of regional banks.

In this paper, the following statistical data are presented in detail: national accounts at current prices, index of industrial production, selected sugar statistics, tourism statistics, retail labor index, wage indicators, operations of the consolidated public sector, central governments operations and transfers, summary accounts of the consolidated banking system, selected interest rates, total exports and imports, financial system credit to the private sector, liquidity position of commercial banks, services, investment income, current transfers, summary of external debt, direction of trade, and so on.

This Article IV Consultation reports that macroeconomic developments in Guatemala have been broadly positive since 2010. Although the external current account deficit widened in 2011, the surplus in the capital account was larger, partly owing to banks’ increased access to foreign credit lines. Executive Directors have welcomed Guatemala’s economic recovery and the favorable outlook, considering that the policy stance for 2012 is broadly appropriate. Directors have also encouraged the authorities to improve public expenditure management.

What is the human cost of the global economic crisis? This year’s Global Monitoring Report, The MDGs after the Crisis, examines the impact of the worst recession since the Great Depression on poverty and human development outcomes in developing countries. Although the recovery is under way, the impact of the crisis will be lasting and immeasurable. The impressive precrisis progress in poverty reduction will slow, particularly in low-income countries in Africa. No household in developing countries is immune. Gaps will persist to 2020. In 2015, 20 million more people in Sub-Saharan Africa will be in extreme poverty and 53 million more people globally. Even households above the $1.25-a-day poverty line in higher-income developing countries are coping by buying cheaper food, delaying other purchases, reducing visits to doctors, working longer hours, or taking multiple jobs. The crisis will also have serious costs on human development indicators: • 1.2 million more children under age five and 265,000 more infants will die between 2009 and 2015. • 350,000 more students will not complete primary education in 2015. • 100 million fewer people will have access to safe drinking water in 2015 because of the crisis. History tells us that if we let the recovery slide and allow the crisis to lead to widespread domestic policy failures and institutional breakdowns in poor countries, the negative impact on human development outcomes, especially on children and women, will be disastrous. The international financial institutions and international community responded strongly and quickly to the crisis, but more is needed to sustain the recovery and regain the momentum in achieving the Millennium Development Goals (MDGs). Developing countries will also need to implement significant policy reforms and strengthen institutions to improve the efficiency of service delivery in the face of fiscal constraints. Unlike previous crises, however, this one was not caused by domestic policy failure in developing countries. So better development outcomes will also hinge on a rapid global economic recovery that improves export conditions, terms-oftrade, and affordable capital flows—as well as meeting aid commitments to low-income countries. Global Monitoring Report 2010, seventh in this annual series, is prepared jointly by the World Bank and the International Monetary Fund. It provides a development perspective on the global economic crisis and assesses the impact on developing countries—their growth, poverty reduction, and other MDGs. Finally, it sets out priorities for policy responses, both by developing countries and by the international community.

This paper examines the Republic of Moldova’s 2002 Article IV Consultation, First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, and a Request for Waiver of Performance Criteria. Moldova has followed sound macroeconomic policies, and most financial targets under the 2001 program were met. Structural reforms slowed in 2001, but gained momentum in 2002. Implementation of most program benchmarks was delayed because of a change in government. The focus now is on fiscal reforms and on improvements in the legal framework.

The British Virgin Islands (BVI) has most of the essential elements for a suitable framework for financial supervision. There is a weakness with respect to onsite supervision of banking, insurance, and securities sectors; and there is currently no regular and comprehensive examination and compliance program in operation. Although the legal and supervisory frameworks are adequately structured, the implementation of the full range of supervisory measures has not yet been fully achieved. However, the government is implementing a comprehensive examination methodology and plan.

The First Review Under the Standby Credit Facility (SCF) discusses Solomon Islands’ satisfactory performance under the SCF-supported program, approved in December 2011. The current arrangement is intended to be precautionary and, given the current level of reserves, the authorities do not intend to draw on the IMF's resources unless an unexpected need arises. The outlook remains favorable, but with large near-term downside risks. Substantial progress has been made toward implementing structural benchmarks.

This 2012 Article IV Consultation highlights that despite a difficult economic and social context, Burundi has made steady, though uneven, progress in implementing its Extended Credit Facility (ECF)-supported economic reforms. Real GDP growth is estimated to have increased to 4.2 percent in 2011. The medium-term macroeconomic outlook is challenging. Risks emanate from a delicate social situation given persistent shocks and the high cost of living. Executive Directors have emphasized the importance of pursuing public financial management reforms to foster greater transparency and accountability, and to strengthen institutional capacity.

The Indonesian economy proved resilient during the global financial crisis, and has since continued to grow at a robust rate. Increases in both foreign and domestic investment are expected to offset lower growth contributions from net exports as import demand rises. A key risk is deterioration in growth for advanced economies. Continued exchange rate flexibility will be important in managing volatile capital flows, and the build-up in reserves. Fiscal developments are consistent with the government’s firm commitment to sustainability and strong public finances.

Kazakhstan’s financial system remains highly stressed despite large-scale government support; the economy is expected to contract in the near future. The staff report for Kazakhstan’s 2009 Article IV Consultation discusses economic developments and policies. Kazakhstan is better placed than many emerging market economies to weather the crisis given its large official foreign currency assets, low public debt, and favorable medium-term prospects. A full and independent assessment of all systemically important banks should be carried out in tandem with the strengthening of regulation and supervision, and the improvement of corporate governance.

Nepal has grappled with formidable economic and social challenges. Although the Nepalese economy performed well, growth has been hampered by weak infrastructure, low saving and investment rates, fiscal constraints, and a lack of absorptive capacity for boosting the needed public investment. Fiscal performance has been favorable, but progress in the area of structural reform was less encouraging. The report analyzes the recent macroeconomic developments, poverty, and environmental issues. The study also reviews the country's external and monetary developments, the fiscal situation, and structural issues.

This Statistical Appendix report on Sudan discusses economic indicators for the period 1994–2000. The report discusses gross domestic product; agricultural production; yield of cotton and noncotton crops; livestock production; manufacturing production; electricity tariff data; consumer and wholesale price indices; central government revenue and expenditure details; official exchange rates; analytical accounts of deposit money banks; monetary authorities' accounts; summary balance of payments; export and import data; loan disbursements; external public debt; and so on.

The paper assesses the competitiveness of Swiss exporters, and shows that the effect of nominal exchange rate on trade balance depends on the degree of exchange rate pass-through and on trade elasticities. It highlights that the degree of exchange rate pass-through should also be factored in monetary policy decisions. The authorities are considering legislative changes to strengthen macroprudential oversight by supporting the mutual cooperation between Financial Market Supervisory Authority (FINMA) and Swiss National Bank (SNB) over the financial stability. The scope of the too-big-to-fail (TBTF) proposal should also be broadened to address systematic risk.

Pakistan showed good macroeconomic performance and structural reforms under the program supported by the Stand-By Arrangement. Executive Directors welcomed this development, and stressed the need for sustained implementation of firm macroeconomic policies, increased revenue collection effort, and a substantial reallocation of public expenditure toward poverty-reducing spending. They emphasized the need to improve governance, accelerate structural reforms, and strengthen the financial system. Directors agreed that the country has successfully completed the second review under the Stand-By Arrangement, and approved a waiver.

This paper presents key findings of the Financial System Stability Assessment for New Zealand, including Reports on the Observance of Standards and Codes on Monetary and Financial Policy Transparency, Banking Supervision, and Securities Regulation. The assessment reveals that New Zealand has a profitable and well-functioning financial system, operating in a framework of well-developed financial markets. Short-term risks to stability appear low, given the favorable macroeconomic outlook, and sound and transparent financial policies. Stress tests for systemically important banks show resilience consistent with the sector’s relatively high levels of capital and profits.

Tonga’s economy has become increasingly vulnerable. Fiscal discipline has weakened, undermining macroeconomic stability and external viability. Medium-term prospects have deteriorated. Moreover, there are other serious downside risks to the fiscal outlook. Further monetary tightening in response to the wage settlement and the full flexibility of the exchange rate system are required. A larger and more dynamic private sector offering alternative employment opportunities would facilitate the downsizing of the public sector. There is a need to improve the reliability, coverage, and timeliness of statistics.

After the global financial crisis, economic growth of the Philippines has increased. However, renewed shocks to global growth and financial markets would affect Philippine exports and remittances. The Bangko Sentral ng Pilipinas (BSP) appropriately has started to unwind its liquidity support measures since early 2010. Traditional toolkits are available for managing external inflows. The planned gradual withdrawal of fiscal stimulus and the focus on medium-term consolidation are welcomed. Public–private partnership programs can play an important role, and a medium-term Philippine development plan could also be prepared.

This paper describes economic developments in Colombia during the 1990s. Economic activity slowed in 1991 as financial policies were tightened to curb inflation. However, activity rebounded strongly to an average of 5 percent a year in 1992–94, buoyed by the trade and financial liberalization, the discovery of substantial new oil fields, relaxation of credit policies, and higher coffee export prices in 1994. Substantial growth was recorded in investment, transport, construction, and service activities, and the unemployment rate fell from 10.5 percent in 1990 to 7.9 percent by end-1994, notwithstanding a moderate increase in labor force participation.

The floods in Pakistan are a natural disaster of massive proportions. The overall impact will critically depend on how the floods will affect agricultural output along the Indus and its tributaries. The Pakistani authorities request financial assistance under the IMF policy for Emergency Natural Disaster Assistance (ENDA). Based on these developments, prior to the floods, IMF staff had projected a GDP growth rate of 4¼ percent and an annual inflation rate of 11.5 percent for 2010/2011. The economic outlook has deteriorated sharply as a result of the floods.

This paper on the United Republic of Tanzania’s Poverty Reduction Strategy reports that increases in investments in infrastructure such as roads, telecommunications, mining, and tourism have been recorded owing to increased inflows of foreign direct investments and domestic revenue effort. Significant improvement in performance is evident in areas such as primary education and road network. The current levels of delivery of services require further improvements in quantity and quality, which call for sustained investments in all sectors.

Despite security risks and some major natural disasters, Indonesia has continued to make steady economic progress in recent years. Recent sound macroeconomic management has calmed inflation pressures, though financial markets remain volatile. In the short term, activity should regain momentum but there are downside risks. There is scope for fiscal policy to support activity in 2006, while still firmly pursuing reduction of the public debt burden over the medium term. The authorities have done much to reduce macroeconomic vulnerabilities in recent years.

This third edition of the Global Monitoring Report examines the commitments and actions of donors, international financial institutions, and developing countries to implement the Millennium Declaration, signed by 189 countries in 2000. Many countries are off track to meet the Millennium Development Goals, particularly in Africa and South Asia, but new evidence is emerging that higher-quality aid and a better policy environment are accelerating progress in some countries, and that the benefits of this progress are reaching poor families. This report takes a closer look at the donors' 2005 commitments to aid and debt relief, and argues that rigorous, sustained monitoring is needed to ensure that they are met and deliver results, and to prevent the cycle of accumulating unsustainable debt from repeating itself. International financial institutions need to focus on development outcomes rather than inputs, and strengthen their capacity to manage for results in developing countries.

This paper reviews economic developments in Turkmenistan during 1996–99. Inflation is an issue in Turkmenistan. The trend decline that started in mid-1996 came to a halt in late 1998 and inflation continued to increase in 1999. By mid-1999, 12-month inflation had increased to 25 percent. Owing to payment problems, gas exports to Ukraine were discontinued in early 1997, resulting in a sharp decline in real GDP in that year. In 1998, gas exports did not resume, other than small deliveries to Iran through a new pipeline that had become operational at end-1997.

This 2011 Article IV Consultation reports that Malaysia’s economy is vulnerable to a prolonged downturn in advanced economies or a sharp escalation in global financial stress. Weaker exports and terms of trade would spillover into domestic demand. Financial spillovers could include a reversal of cross-border bank and portfolio flows. Healthy financial and corporate balance sheets, ample foreign exchange reserves, and room to further loosen monetary policy would help contain the impact of an external shock on the financial sector and the economy.

This 2002 Article IV Consultation highlights that eight consecutive years of growth in Barbados ended in 2001 as real GDP contracted by 2¾ percent, owing mainly to the adverse impact on tourism of the global economic slowdown and the September 11 terrorist attacks, as well as continuing declines in agriculture and manufacturing output. To lessen the impact of the September 11 attacks, the authorities implemented a national emergency program in the fourth quarter of 2001. Broad money grew by 5½ percent in 2001, reflecting capital inflows and an increase in international reserves.

This paper focuses on the Fifth Post-Program Monitoring Discussions with Jordan. Jordan’s economic performance remains strong. Growth is robust, core inflation is contained, the current account deficit is narrowing, reserves are comfortable, and the fiscal situation continues to improve. The Fifth Post-Program Monitoring Discussions focused on a large current account deficit, still high public debt, and rapid credit growth. The authorities consider the outlook for the Jordanian economy as strong, including on growth, inflation, and the current account.

Conceptual ambiguities and statistical weaknesses hamper the assessment of external competitiveness. The term competitiveness, while applied extensively, is often imprecisely defined, which can result in analytical errors and mistaken policy advice. Furthermore, aggregate statistical measures of competitiveness in terms of exchange rate misalignment can be biased. To address these issues, this paper makes two contributions. First, it clarifies the external competitiveness concept, highlighting the dichotomy between productivity-driven long-run growth and short-run deviations from the underlying growth trajectory, which can be related to exchange rate misalignment. Second, it develops a disaggregated statistical approach for examining competitiveness based on unit labor costs at the three digit industry level in a group of comparable countries. The case of Slovakia is used to illustrate these concepts, but the analytical insights have general application.

The paper uses survey data to analyze whether financial market expectations on government budget deficits changed in France, Germany, Italy, and the United Kingdom during the period of the Stability and Growth Pact (SGP). Our findings indicate that accuracy of financial expert deficit forecasts increased in France. Convergence between the European Commission''s and market experts’ deficit forecasts also increased in France, Italy, and the United Kingdom, particularly during the period after SGP’s reform in 2005. Yet, convergence between markets’ forecasts and those of the French, German, and Italian national fiscal authorities seems not to have increased significantly during the SGP.

Authors of Working Papers are normally staff members of the Fund or consultants, although on occasion outside authors may collaborate with a staff member in writing a paper. The views expressed in the Working Papers or their summaries are, however, those of the authors and should not necessarily be interpreted as representing the views of the Fund. Copies of individual Working Papers and information on subscriptions to the annual series of Working Papers may be obtained from IMF Publication Services, International Monetary Fund, 700 19th Street, Washington, D.C. 20431. Telephone: (202) 623-7430 Telefax: (202) 623-7201 This compilation of summaries of Working Papers released during July-December 1994 is being issued as a part of the Working Paper series. It is designed to provide the reader with an overview of the research work performed by the staff during the period.

Loan review is a process routinely used by banks to assess the current value of loan portfolios. Provisioning is a technique to translate loan review results into the balance sheet. It allows for ongoing valuation of loans. Both are core elements of credit risk management and important to prudential oversight. As illustrated in this paper, valuation feeds into indicators of overall bank soundness and key macroprudential indicators. Country practices and recent moves to more forward-looking models are surveyed. Macroeconomic linkages are highlighted, including tax treatment of provisions, variables of the monetary survey, and procyclical aspects of loan valuation systems.

The IMF's principal statistical publication, International Financial Statistics (IFS) Online, is the standard source of international statistics on all aspects of international and domestic finance. for most countries, IFS Online reports data on balance of payments, international investment position, international liquidity, monetary and financial statistics, exchange rates, interest rates, prices, production, government accounts, national accounts, and population. Updated monthly.

Since 1978 the Chinese economy has grown on average more than 9 percenta year. Per capita income has nearly quadrupled in the past 15 years andsome analysts predict that within 20 years the Chinese economy will belarger than that of the United States. This pamphlet analyzes the reasonsfor the extraordinary growth of the Chinese economy.

This pamphlet focuses on the IMF's role in social policy advice. First, the evolution of the IMF's involvement in social issues is traced, and the lessons that can be drawn from this experience, includingpolicy implications, are outlined. This is followed by an elaboration of the social dimensions of IMF policy advice to member countries underits two major activities: surveillance of economic policies and financial support for adjustment programs. the IMF's collaboration onsocial issues with the World Bank and UN agencies is examined, and theconclusion focuses on ways to further strengthen the IMF's contributionto social development.

The phenomenon of substantial peacetime budget deficits over the past20 years has been traced to the burden of entitlements, a slowdown ineconomic productivity, and demographic and macroeconomic shifts in theindustrial countries. Though smaller and structurally different, deficitsin developing countries have also become worrisome. Most economists agreethat measures to reduce government spending are imperative, particularlythrough restructuring entitlement programs.

This paper reviews the Financial System Stability Assessment Update on the Philippines. The assessment reveals that the banking sector has been strengthened considerably since the Asian crisis of the late 1990s and today appears generally resilient to a broad range of macroeconomic risks. The impact of the ongoing global crisis has been milder than originally feared, and the macroeconomic outlook is improving, although risks remain elevated in the near term. Considerable progress has been made toward implementing the recommendations of the initial Financial Sector Assessment Program, particularly in banking supervision.

This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper (PRSP) for Albania. The note analyzes the National Strategy for Development and Integration (NSDI) program, which represents a significant improvement in process over the previous PRSP. The note discusses that the main strengths of the current process are strong government ownership; a broader participatory process that lays the foundation for greater civil society participation in public policy making; an improved poverty diagnosis; and ambitious plans for monitoring the overall effectiveness of Albania's public expenditures.

John Lipsky on IMF role; Liberia; Middle East outlook; Country briefs: Chile, Iceland; Ukraine reforms; Syria's oil crunch; Measuring sovereign risk; Maastricht inflation criterion; financial sector supervision; IMF bookstore; Nouriel Roubini.

Civil service reform is often essential to bring about governanceimprovements that are needed for sustainable poverty reduction.A workshop hosted by the World Bank and the IMF in September 2001provided a forum to review the effectiveness of Bank-Fund advice and programs on civil service reform, and to propose ways to improve jointefforts in coming years. Programs in 11 countries were examined, (Benin,Bolivia, Cambodia, Macedonia, Mali, Mongolia, Pakistan, Russia, Tanzania,Yemen, Zambia), and macrofiscal and structural outcomes of Bank-Fund workin those countries considered. This book is a joint publication betweenthe IMF and the World Bank.

1. In the attached letter, the Haitian authorities request an extension of the Poverty Reduction and Growth Facility (PRGF) arrangement to May 31, 2010. This arrangement was approved on November 20, 2006 and access was augmented twice, bringing total access to 138 percent of quota (SDR 114.7 million). The fifth review was completed on June 29, 2009 and, at that time, the arrangement was extended from November 19, 2009 to January 31, 2010. Given that the date of the Executive Board meeting for approval of a new program and for the completion of the sixth PRGF review is tentatively scheduled for February 22, 2010, a new extension is required. The proposed extension to May 31, 2010, will provide additional time for the completion of the sixth and final review, and for making the final disbursement under the PRGF arrangement.

An introductory guide to the IMF, its history, and its role in the international financial system. Explains for a general audience the IMF's lending policies, how decisions are made, and where the money comes from. Gives details of the structure of the IMF, its increasing transparency, how it provides technical assistance to member countries, its role in crisis prevention, and how it is helping the world's poorest countries. Revised in August 2006.

This study takes stock of the institutional reform of monetary policy in Latin America since the early 1990s. It argues that strengthening the legal independence of central banks, together with macroeconomic policies, was instrumental in reducing inflation from three-digit annual rates in the 1990s to single-digit territory in 2004. The paper also discusses the main challenges of monetary policy today, namely, achieving price stability, restoring market confidence in domestic currencies, and sticking to policy consistency despite adverse effects of the volatility of capital flows. Finally, recurrent banking crises and lack of fiscal discipline are identified as the main risks for the success of monetary policy in Latin America.

The next financial collapse will resemble nothing in history. . . . Deciding upon the best course to follow will require comprehending a minefield of risks, while poised at a crossroads, pondering the death of the dollar.

The U.S. dollar has been the global reserve currency since the end of World War II. If the dollar fails, the entire international monetary system will fail with it. But optimists have always said, in essence, that confidence in the dollar will never truly be shaken, no matter how high our national debt or how dysfunctional our government.

In the last few years, however, the risks have become too big to ignore. While Washington is gridlocked, our biggest rivals—China, Russia, and the oil-producing nations of the Middle East—are doing everything possible to end U.S. monetary hegemony. The potential results: Financial warfare. Deflation. Hyperinflation. Market collapse. Chaos.

James Rickards, the acclaimed author of Currency Wars, shows why money itself is now at risk and what we can all do to protect ourselves. He explains the power of converting unreliable investments into real wealth: gold, land, fine art, and other long-term stores of value.

The main driver of inequality--returns on capital that exceed the rate of economic growth--is again threatening to generate extreme discontent and undermine democratic values. Thomas Piketty's findings in this ambitious, original, rigorous work will transform debate and set the agenda for the next generation of thought about wealth and inequality.

#1 NEW YORK TIMES BESTSELLER


If you want to build a better future, you must believe in secrets.

The great secret of our time is that there are still uncharted frontiers to explore and new inventions to create. In Zero to One, legendary entrepreneur and investor Peter Thiel shows how we can find singular ways to create those new things.

Thiel begins with the contrarian premise that we live in an age of technological stagnation, even if we’re too distracted by shiny mobile devices to notice. Information technology has improved rapidly, but there is no reason why progress should be limited to computers or Silicon Valley. Progress can be achieved in any industry or area of business. It comes from the most important skill that every leader must master: learning to think for yourself.

Doing what someone else already knows how to do takes the world from 1 to n, adding more of something familiar. But when you do something new, you go from 0 to 1. The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. Tomorrow’s champions will not win by competing ruthlessly in today’s marketplace. They will escape competition altogether, because their businesses will be unique.

Zero to One presents at once an optimistic view of the future of progress in America and a new way of thinking about innovation: it starts by learning to ask the questions that lead you to find value in unexpected places.

Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine?

Is it culture, the weather, geography? Perhaps ignorance of what the right policies are?

Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence?

Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities.

The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions—with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories.

Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including:

- China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West?

- Are America’s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority?

- What is the most effective way to help move billions of people from the rut of poverty to prosperity? More philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson’s breakthrough ideas on the interplay between inclusive political and economic institutions?

Why Nations Fail will change the way you look at—and understand—the world. 

**USA Today bestseller and Wall Street Journal business bestseller**

They say John Maynard Keynes called gold a "barbarous relic."
They say there isn’t enough gold to support finance and commerce.
They say the gold supply can’t increase fast enough to support world growth.

They’re wrong.

In this bold manifesto, bestselling author and eco­nomic commentator James Rickards steps forward to defend gold—as both an irreplaceable store of wealth and a standard for currency.
 
Global political instability and market volatility are on the rise. Gold, always a prudent asset to own, has become the single most important wealth preserva­tion tool for banks and individuals alike. Rickards draws on historical case studies, monetary theory, and personal experience as an investor to argue that:
 
• The next financial collapse will be exponentially bigger than the panic of 2008. 
• The time will come, sooner rather than later, when there will be panic buying and only central banks, hedge funds, and other big players will be able to buy any gold at all.
• It’s not too late to prepare ourselves as a nation: there’s always enough gold for a gold standard if we specify a stable, nondeflationary price.
 
Providing clear instructions on how much gold to buy and where to store it, the short, provocative argu­ment in this book will change the way you look at this “barbarous relic” forever.


From the Hardcover edition.

Here is a bold history of economics - the dramatic story of how the great economic thinkers built today's rigorous social science. Noted financial writer and economist Mark Skousen has revised and updated this popular work to provide more material on Adam Smith and Karl Marx, and expanded coverage of Joseph Stiglitz, 'imperfect' markets, and behavioral economics.This comprehensive, yet accessible introduction to the major economic philosophers of the past 225 years begins with Adam Smith and continues through the present day. The text examines the contributions made by each individual to our understanding of the role of the economist, the science of economics, and economic theory. To make the work more engaging, boxes in each chapter highlight little-known - and often amusing - facts about the economists' personal lives that affected their work.

Charles Wheelan’s wonderfully whimsical, best-selling Naked series tackles the weird, surprisingly colorful world of money and banking.

Consider the $20 bill.

It has no more value, as a simple slip of paper, than Monopoly money. Yet even children recognize that tearing one into small pieces is an act of inconceivable stupidity. What makes a $20 bill actually worth twenty dollars? In the third volume of his best-selling Naked series, Charles Wheelan uses this seemingly simple question to open the door to the surprisingly colorful world of money and banking.

The search for an answer triggers countless other questions along the way: Why does paper money (“fiat currency” if you want to be fancy) even exist? And why do some nations, like Zimbabwe in the 1990s, print so much of it that it becomes more valuable as toilet paper than as currency? How do central banks use the power of money creation to stop financial crises? Why does most of Europe share a common currency, and why has that arrangement caused so much trouble? And will payment apps, bitcoin, or other new technologies render all of this moot?

In Naked Money, Wheelan tackles all of the above and more, showing us how our banking and monetary systems should work in ideal situations and revealing the havoc and suffering caused in real situations by inflation, deflation, illiquidity, and other monetary effects. Throughout, Wheelan’s uniquely bright-eyed, whimsical style brings levity and clarity to a subject often devoid of both. With illuminating stories from Argentina, Zimbabwe, North Korea, America, China, and elsewhere around the globe, Wheelan demystifies the curious world behind the paper in our wallets and the digits in our bank accounts.

Despite their passion and fury, contemporary Americans are remarkably clueless about how their tax system works. But with heated debates over taxation now roiling Congress and the nation, an understanding of our tax system is of vital importance. Taxes in America: What Everyone Needs to Know?, by preeminent tax scholars Leonard E. Burman and Joel Slemrod, offers a clear, concise explanation of how our tax system works, how it affects people and businesses, and how it might be improved. Accessibly written and organized in a clear, question-and-answer format, the book describes the intricacies of the modern tax system in an easy-to-grasp manner. Burman and Slemrod begin with the basic definitions of taxes and then delve into more complicated and indeed contentious concerns. They address such questions as how to recognize Fool's Gold tax reform plans. How much more tax could the IRS collect with better enforcement? How do tax burdens vary around the world? Why do corporations pay so little tax, even though they earn trillions of dollars every year? And what kind of tax system is most conducive to economic growth? What Everyone Needs to Know? is a registered trademark of Oxford University Press.

James Grant’s story of America’s last governmentally untreated depression: A bible for conservative economists, this “carefully researched history…makes difficult economic concepts easy to understand, and it deftly mixes major events with interesting vignettes” (The Wall Street Journal).

In 1920-1921, Woodrow Wilson and Warren G. Harding met a deep economic slump by seeming to ignore it, implementing policies that most twenty-first century economists would call backward. Confronted with plunging prices, wages, and employment, the government balanced the budget and, through the Federal Reserve, raised interest rates. No “stimulus” was administered, and a powerful, job-filled recovery was under way by late 1921. Yet by 1929, the economy spiraled downward as the Hoover administration adopted the policies that Wilson and Harding had declined to put in place.

In The Forgotten Depression, James Grant “makes a strong case against federal intervention during economic downturns” (Pittsburgh Tribune Review), arguing that the well-intended White House-led campaign to prop up industrial wages helped turn a bad recession into America’s worst depression. He offers examples like this, and many others, as important strategies we can learn from the earlier depression and apply today and to the future. This is a powerful response to the prevailing notion of how to fight recession, and “Mr. Grant’s history lesson is one that all lawmakers could take to heart” (Washington Times).

As a governor of the Federal Reserve Board from 1996 to 2002, Laurence H. Meyer helped make the economic policies that steered the United States through some of the wildest and most tumultuous times in its recent history. Now, in A Term at the Fed, Governor Meyer provides an insider's view of the Fed, the decisions that affected both the U.S. and world economies, and the challenges inherent in using monetary policy to guide the economy.

When Governor Meyer was appointed by President Clinton to serve on the Federal Reserve Board of Governors in 1996, the United States was entering one of the most prosperous periods in its history. It was the time of "irrational exuberance" and the fabled New Economy. Soon, however, the economy was tested by the Asian financial crisis, the Russian default and devaluation, the collapse of Long-Term Capital Management, the bursting of America's stock bubble, and the terrorist attacks of 9/11.

In what amounts to a definitive playbook of monetary policy, Meyer now relives the Fed's closed-door debates -- debates that questioned how monetary policy should adapt to the possibility of a New Economy, how the Fed should respond to soaring equity prices, and whether the Fed should broker the controversial private sector bailout of LTCM, among other issues. Meyer deftly weaves these issues with firsthand stories about the personalities involved, from Fed Chairman Alan Greenspan to the various staffers, governors, politicians, and reporters that populate the world of the Fed.

Since the end of his term, Meyer has continued to watch the Fed and the world economy. He believes that we are witnessing a repetition of some of the events of the remarkable 1990s -- including a further acceleration in productivity and perhaps another bull market. History does not repeat itself, yet Meyer shows us how the lessons learned yesterday may help the Fed shape policy today.

“It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments.” – from The Theory of Money and Credit

Originally published in 1912, Ludwig von Mises’s The Theory of Money and Credit remains today one of economic theory’s most influential and controversial treatises. Von Mises’s examination into monetary theory changed forever the world of economic thought when he successfully integrated “macroeconomics” into “microeconomics” —previously deemed an impossible task —as well as offering explanations into the origin, value and future of money.

One hundred years later, von Mises and the Austrian school of economic theory are still fiercely debated by world economists in their search for the solution to America’s current financial crisis. His theorems continue to inspire politicians and market experts who aim to raise up the common man and reduce the financial power of governments. In a preface added in 1952, von Mises urges the people of the world to see economic truth:

“The great inflations of our age are not acts of God. They are man-made or, to say it bluntly, government-made. They are the off-shoots of doctrines that ascribe to governments the magic power of creating wealth out of nothing and of making people happy by raising the ‘national income.’”

“The best book on money ever written.” —Murray Rothbard, economist and historian

“The greatest economist of the twentieth century.” —Sandeep Jaitly, economist

The bestselling author of The Death of Money and Currency Wars reveals the global elites' dark effort to hide a coming catastrophe from investors in The Road to Ruin, now a National Bestseller.
 
A drumbeat is sounding among the global elites. The signs of a worldwide financial meltdown are unmistakable. This time, the elites have an audacious plan to protect themselves from the fallout: hoarding cash now and locking down the global financial system when a crisis hits.
 
Since 2014, international monetary agencies have been issuing warnings to a small group of finance ministers, banks, and private equity funds: the U.S. government’s cowardly choices not to prosecute J.P. Morgan and its ilk, and to bloat the economy with a $4 trillion injection of easy credit, are driving us headlong toward a cliff.
 
As Rickards shows in this frightening, meticulously researched book, governments around the world have no compunction about conspiring against their citizens. They will have stockpiled hard assets when stock exchanges are closed, ATMs shut down, money market funds frozen, asset managers instructed not to sell securities, negative interest rates imposed, and cash withdrawals denied.
 
If you want to plan for the risks ahead, you will need Rickards’s cutting-edge synthesis of behavioral economics, history, and complexity theory. It’s a guidebook to thinking smarter, acting faster, and living with the comfort­ing knowledge that your wealth is secure.
 
The global elites don’t want this book to exist. Their plan to herd us like sheep to the slaughter when a global crisis erupts—and, of course, to maintain their wealth—works only if we remain complacent and unaware. Thanks to The Road to Ruin, we don’t need to be.

"If you are curious about what the financial Götterdämmerung might look like you’ve certainly come to the right place... Rickards believes -- and provides tantalizing snippets of private conversations with those who dwell in the very eye-in-the-pyramid -- that the current world monetary and financial system is on the verge of insolvency and that the world financial elites already have a successor system for which they are laying the groundwork."
--Ralph Benko, Forbes

"The story of this storm in the global markets is the story of how government intervention to solve previous crises laid the foundation for a new one," writes Johan Norberg in his important new book. Tracing the causes of our current financial crisis with liveliness and clarity, Financial Fiasco shows the mistakes made in Washington, on Wall Street, and in communities across America that led to the economic meltdown. While many analysts have placed the blame solely on Wall Street, Norberg exposes the crucial role government regulation played in creating the opportunities and incentives that led to the financial collapse.
In six concise chapters, Financial Fiasco tells the complex story of the crisis, showing how monetary policy, housing policy, and financial innovations combined to create financial catastrophe. The final two chapters describe the government's mismanagement of the crisis and how we are now dangerously repeating many of the very same mistakes that caused it. An understanding of the roots of the financial crisis is crucial for every American who has felt its effects - and would like to prevent the same disaster from happening again. Financial Fiasco provides that understanding, with great insight, clarity, and wit.
Just as important, the book serves as a profound warning against pursuing the wrong solutions. "After government authorities had helped create the worst financial crisis in generations, the climate of ideas has now shifted dramatically in the direction of bigger and more active government," Norberg writes. Financial Fiasco is the perfect antidote to those ideas, a cautionary tale on how to stop confusing the disease with the cure.

The most important book yet from the author of the international bestseller The Shock Doctrine, a brilliant explanation of why the climate crisis challenges us to abandon the core “free market” ideology of our time, restructure the global economy, and remake our political systems.

In short, either we embrace radical change ourselves or radical changes will be visited upon our physical world. The status quo is no longer an option.

In This Changes Everything Naomi Klein argues that climate change isn’t just another issue to be neatly filed between taxes and health care. It’s an alarm that calls us to fix an economic system that is already failing us in many ways. Klein meticulously builds the case for how massively reducing our greenhouse emissions is our best chance to simultaneously reduce gaping inequalities, re-imagine our broken democracies, and rebuild our gutted local economies. She exposes the ideological desperation of the climate-change deniers, the messianic delusions of the would-be geoengineers, and the tragic defeatism of too many mainstream green initiatives. And she demonstrates precisely why the market has not—and cannot—fix the climate crisis but will instead make things worse, with ever more extreme and ecologically damaging extraction methods, accompanied by rampant disaster capitalism.

Klein argues that the changes to our relationship with nature and one another that are required to respond to the climate crisis humanely should not be viewed as grim penance, but rather as a kind of gift—a catalyst to transform broken economic and cultural priorities and to heal long-festering historical wounds. And she documents the inspiring movements that have already begun this process: communities that are not just refusing to be sites of further fossil fuel extraction but are building the next, regeneration-based economies right now.

Can we pull off these changes in time? Nothing is certain. Nothing except that climate change changes everything. And for a very brief time, the nature of that change is still up to us.