Today, the OECD releases the 2022 edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. The OECD Transfer Pricing Guidelines provide guidance on the application of the "arm’s length principle", which represents the international consensus on the valuation, for income tax purposes, of cross-border transactions between associated enterprises. In today’s economy where multinational enterprises play an increasingly prominent role, transfer pricing continues to be high on the agenda of tax administrations and taxpayers alike. Governments need...

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A proposed $50-billion trust fund could help low-income and vulnerable middle-income countries build resilience to balance of payments shocks and ensure a sustainable recovery. Even as countries continue to battle COVID-19, it is crucial not to overlook the longer-term challenge of transforming economies to become more resilient to shocks and achieve sustainable and inclusive growth. The pandemic has taught us that not addressing these long-term challenges in a timely manner can have significant economic consequences, with the potential for future...

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Today, European society needs the contribution of universities and other higher education institutions more than ever. Europe is facing major challenges such as climate change, the digital transformation and aging population, at a time when it is hit by the biggest global health crisis in a century and its economic fall-out. Universities, and the entire higher education sector, have a unique position at the crossroads of education, research and innovation, in shaping sustainable and resilient economies, and in making...

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In the US and UK, the recent labor market puzzle can be partly explained by mismatch, the pandemic’s effect on women (in the US) and older workers leaving the work force. Almost two years after the pandemic upended labor markets, job openings are plentiful in many advanced economies, yet workers have not fully returned. 'The broader trend of plentiful jobs and not enough workers can have major implications for growth, inequality, and inflation.' This gap, in which the employment rate is below...

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From COVID-19 to climate change, economies are facing new challenges. The world is changing. From COVID-19 and climate change to digitalization and diverging demographics, the IMF’s member countries are confronting new challenges. The impacts of these challenges are being felt unevenly across countries and will inevitably play out in their balance of payments, potentially undermining global economic stability. 'The challenges facing IMF member countries are constantly evolving.' It is therefore important that the Fund also revisit its policy advice, lending activities...

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Interview with Süddeutsche Zeitung | Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Markus Zydra, Bastian Brinkmann and Meike Schreiber on 10 January 2022 | Ms Schnabel, inflation in the euro area now stands at 5% – a record high. When are you finally going to intervene? We view these figures with some concern, as they are higher than we initially expected. And we fully understand many people’s worries about the drop in real wages...

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Introductory statement by Christine Lagarde, President of the ECB, at the meeting of the Conference of Parliamentary Committees for Union Affairs of the Parliaments of the European Union (COSAC) | Paris, 14 January 2022 | Before I begin my remarks, I would like to take a moment to honour the memory of President David Sassoli. Like all who knew him, I was deeply saddened by his loss, and I would like to remember him with the words he said in...

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There’s a growing interconnectedness between virtual assets and financial markets. Crypto assets such as Bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns. 'Crypto assets are no longer on the fringe of the financial system.' The market value of these novel assets rose to nearly $3 trillion in November from $620 billion in 2017, on soaring popularity among retail and institutional investors alike, despite high volatility. This...

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Shipping costs soared over the past year as consumers unleashed pent-up savings to buy new merchandise while the pandemic continued to snarl the world’s supply chains. Container rates have more than quadrupled since the start of the pandemic, with some of the biggest gains concentrated in the first three quarters of last year. Lockdowns, labor shortages, and strains on logistics networks led to shipping-cost increases and significantly lengthened delivery times , though those pressures are easing. Our Chart of...

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Pandemic-related special factors led to unusually low inflation in 2020 and unusually high inflation in 2021, Chief Economist Philip R. Lane tells Il Sole 24 Ore. 2022 is a transition phase: high inflation will be fading this year | Euro area HICP inflation in December hit another record all-time high. Maybe a peak. Markets are now even more convinced that the ECB is going to raise interest rates at the end of this year. Is this data going to derail...

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