The Unassuming Economist

The IMF’s latest report states: “In staff’s view, the strong fiscal buffers, the availability of financing, and the current cyclical position of the economy mean that rapid fiscal consolidation is neither necessary nor desirable. Saudi Arabia has some fiscal space that can be used for a more gradual fiscal consolidation that balances the budget by 2022 rather than in 2019 …”. Read the report for the full background and context for the advice.

A new IMF working paper ranks countries combining data on average incomes and the extent of income inequality, and how much societies are assumed to dislike inequality (called ‘inequality aversion’). Hong Kong SAR is almost always at the top. The United States is second if societies are assumed not to care too about inequality. But it slides to number 24 if societies are assumed to dislike inequality a lot, with more equal societies like Norway, Canada, and New Zealand taking the higher ranks. (For wonks: see Appendix Table 1 of the working paper for hours of fun comparing countries.)