Spikes in the share of online spending are dissipating overall, but there’s significant variation by industry There’s no doubt that e-commerce helped many navigate the pandemic, from online shopping to curbside pickup to food delivery. But as we slowly emerge from lockdowns and other restrictions, it’s less clear how this shift to digital commerce may evolve across economies and industries. This raises questions about how much digital consumption increased, whether the crisis widened the digital divide or spurred economies with little...

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Today the OECD/G20 Inclusive Framework on BEPS released further technical guidance on the 15% global minimum tax agreed in October 2021 as part of the two-pillar solution to address the tax challenges arising from digitalisation of the economy. The Commentary published today elaborates on the application and operation of the Global Anti-Base Erosion (GloBE) Rules agreed and released in December 2021. The GloBE Rules provide a co-ordinated system to ensure that Multinational Enterprises (MNEs) with revenues above EUR 750 million...

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14/03/2021 – HR/VP Blog – Putin’s war against Ukraine has already caused thousands of death but also major economic damages globally. We need to handle the impact of this third asymmetric shock in 15 years, at home and abroad. EU leaders agreed at the informal summit in Versailles to bolster European economic resilience, radically reduce our energy imports from Russia and move ahead with a serious strengthening of European defence. "To handle the wider impact of the war against Ukraine,...

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The conflict is a major blow to the global economy that will hurt growth and raise prices. Beyond the suffering and humanitarian crisis from Russia’s invasion of Ukraine, the entire global economy will feel the effects of slower growth and faster inflation. Impacts will flow through three main channels. One, higher prices for commodities like food and energy will push up inflation further, in turn eroding the value of incomes and weighing on demand. Two, neighboring economies in particular will grapple...

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With fiscal policy having gained fresh prominence, governments must carefully calibrate their policies in the pandemic’s aftermath Before the global financial crisis of 2008, the general consensus was that the most important contribution fiscal policy could make to macroeconomic policy was to avoid becoming a source of instability. That is, while sound public tax and spending policies were considered fundamental to financial stability, it was monetary policy, with its focus on price stability, that would deliver the optimal level of...

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Washington, DC : The Executive Board of the International Monetary Fund (IMF) today approved a disbursement of US$1.4 billion (SDR 1,005.9 million) under the Rapid Financing Instrument (RFI) to help meet urgent financing needs and mitigate the economic impact of the war. The Executive Board expressed its strong support for the Ukrainian people. The war in Ukraine is resulting in tragic loss of life and human suffering. While the outlook is subject to extraordinary uncertainty, the economic consequences are already...

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Fighting Inflation with Rate Hikes and Balance Sheet Reduction | Governor Christopher J. Waller | At the Economic Forecast Project, University of California, Santa Barbara, Santa Barbara, California | Thank you Peter, and thank you to the UCSB Economic Forecast Project for the invitation to speak today. My plan is to start with my outlook for the U.S. economy in 2022, and then describe what I consider the appropriate path of monetary policy to keep the economy on a healthy...

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The Commission outlines today the very substantial support the EU is making available to help people fleeing war in Ukraine, as well as the EU countries receiving them. In the face of Russia's unprovoked and unjustified military invasion of Ukraine, European solidarity in action is helping people through direct humanitarian aid, emergency civil protection assistance, support at the border, as well as a clear legal status allowing those fleeing the war to receive immediate protection in the EU. The assistance...

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WASHINGTON - Today, U.S. Secretary of the Treasury Janet L. Yellen released the following statement on President Biden's executive order on digital assets. "President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy. This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses. It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy. Under...

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