OMFIF Economic and Monetary Policy Institute

🪙A fiscal crisis is looming across the world. Governments face tepid productivity growth, which is constraining revenues. Meanwhile, pressures on the expenditure side will continue to mount over the coming years owing to rising interest payments, ageing populations, asset maintenance and climate change. Long-term fiscal projections make for grim reading. For instance, the Congressional Budget Office forecasts that the total US federal deficit will rise to 8.5% of gross domestic product over the next 30 years, from 5.6% in 2024. The International Monetary Fund projects that global public debt will approach 100% of GDP by the end of the decade. It is something of a fantasy to expect that governments can operate under current conditions for a prolonged period. Against this backdrop, OMFIF has published a new report in collaboration with EY. ‘The future of public money’ outlines the need for an urgent rethink of how public spending is framed, conducted and evaluated to ensure governments can meet growing societal demands while improving the sustainability of public finances. To inform this report, OMFIF and EY conducted three steering committee meetings with public finance experts from organisations including the International Monetary Fund, US Treasury, US Congress, European Commission, UK National Audit Office, rating agencies, banks and academia. These insights are supplemented by analysis of external reports and OMFIF’s research. Read the report here: https://lnkd.in/eizZTceS

Pillar 1 of the Absa Africa Financial Markets Index evaluates the size and liquidity of domestic equity and bond markets, as well as the diversity of listed assets and infrastructure that enhances market depth. Key Findings: 📈Scores improved in 19 countries, showing a clear divergence in performance on market size and liquidity. 🪙The range of financial products continues to expand, with new ESG bonds, sukuk bonds, and derivative products being introduced. 🏗️Progress on market infrastructure is advancing, with countries upgrading their central securities depositories. Dive deeper into how African markets are growing and diversifying in the full index: https://lnkd.in/emR6CQxw

Last year, our Global Public Funds survey found that 77% of survey respondents selected information and data as the main barrier to further ESG adoption.  How will public pension and sovereign funds respond this year?  To find out, register for the launch of our 2024 Global Public Funds report:   https://lnkd.in/daqUfTYz  

Governments globally are facing a fiscal reckoning. 🚨 Median public debt among G7 economies has surged past 100% of GDP - a concerning trajectory that's set to continue. Our latest report, produced in collaboration with EY, explores the fiscal challenges governments must confront. Read the report: https://lnkd.in/eizZTceS

Today, OMFIF welcomed leading economists Patrick Bolton, Imperial College London and Haizhou Huang, People's Bank of China to discuss their new book, Money Capital, which argues that money should instead be seen as the equity capital of a nation. They provided fresh insights on inflation, central banking, economic growth, and the international monetary system, including valuable perspectives on China's economy and monetary policy.

📅 Just one month to go! OMFIF’s Global Public Funds 2024 is set to reveal the investment intentions of public pension and sovereign funds worldwide. Drawing on survey insights, exclusive interviews, and contributions from public asset owners, this report explores key themes, including attitudes towards private markets, emerging market allocations, and strategies for transition finance. Join us at the virtual launch event to hear from industry leaders as they present and discuss the report’s findings: https://lnkd.in/daqUfTYz

Tomorrow’s election may resolve lots of uncertainties about America’s direction for the next four years, but some of the most important questions facing global investors and corporate executives will go unanswered. America’s protectionist turn continues regardless of which candidate prevails, but just what we plan to protect and how much we are willing to pay remain anybody’s guess, writes Christopher Smart, PhD CFA, Managing Partner of Arbroath Group: https://lnkd.in/egZNCBzU

The Absa Africa Financial Markets Index 2024 highlights growing investment potential across Africa, with scores improving for 23 countries—the highest since the index’s launch in 2017. Discover the latest insights on the continent's economic potential: https://lnkd.in/emR6CQxw

OMFIF at the 2024 International Monetary Fund-The World Bank Annual Meetings: bringing together 337 attendees from 54 countries for critical discussions on global finance 🌍 Our discussions spanned the most pressing issues facing the financial sector today: from examining #dollar dominance in the global economy 💵 to exploring how #CBDCs can revolutionise cross-border payments 🔄. Key conversations addressed Europe's path to prosperity, the evolution of public money, developments in government securities markets, and the launch of the 2024 Absa Africa Financial Markets Index. 📊 Thank you to all our speakers, delegates and partners who joined us for these important discussions.

The landscape of African financial markets continues to evolve amid global pressures and domestic reforms, with key stakeholders working to strengthen market infrastructure while addressing persistent challenges, writes OMFIF's Arunima Sharan: https://lnkd.in/e9QYQdH2 The eighth edition of the Absa Africa Financial Markets Index, which launched in October 2024 at the International Monetary Fund and World Bank annual meetings in Washington DC, lays out a story of clear and widespread progress. Scores increased for 82% of the 29 countries in the index, marking the highest proportion since its inception in 2017. Watch the launch of the 2024 Absa Africa Financial Markets Index report here: https://lnkd.in/ehYkH9K5