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Hearings
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Costa Rica
Recent developments. Growth has been resilient despite global headwinds and inflation is on a strong downward trend. The easing of external pressures has allowed the authorities to rebuild reserves, while the ongoing fiscal consolidation has strengthened debt sustainability and contributed to upgraded sovereign ratings.
Mexico
The report discusses the important role of the Flexible Credit Line (FCL) in helping Mexico to survive in the fragile global economic environment. The FCL’s contribution in maintaining an orderly financial market in Mexico is noteworthy. IMF staff reaffirms their commitment toward Mexico in taking the necessary actions to manage unforeseen risks. According to the IMF staff report, Mexico meets the qualification criteria for access to FCL resources, and staff recommends approval of a fund of SDR 47.292 billion for a period of 24 months.
The Business Year: Ecuador 2020
As Ecuador and the world at large grapple with the emerging challenge of the COVID-19 pandemic, it is important not to forget the fundamentals of the Ecuadorian economy and the success stories of 2019 and the start of 2020. We believe contained within these pages is an accurate, balanced account of the state of the Ecuadorian economy as of publication, told through the words of the dozens of top public- and private-sector figures. The Business Year's country-specific publications, sometimes featuring over 150 face-to-face interviews, are among the most comprehensive annual economic publications available internationally. This 212-page publication covers green economy, finance, hydrocarbons, mining, agriculture, construction, industry, transport, education, health, ICT, and tourism.
Inflated Concerns: Exposure to Past Inflationary Episodes and Preferences for Price Stability
Using individual-level survey data for both advanced economies and emerging markets spanning over 45 years for 42 countries, we show that cohorts who have had higher exposure to past inflationary episodes (levels, as well as to more persistent or to more volatile inflation), systematically express higher concerns over rising prices. The link between past high inflation exposure and expressed concerns over price stability is particularly strong when an individual’s exposure occurs in the latter part of her working-age (as in lifecycle theory). The impact of past exposure to high inflation on contemporaneous preferences over price stability increases when surveyed in the midst of high ongoing inflation and with macroeconomic instability (as measured by GDP growth volatility), but diminishes with the quality of institutions.
