International Monetary Fund:weekend read

Dear MARIA,   In today's edition, we highlight: New Issue of F&D Magazine: More Data, Now What? How Stablecoins Can Improve Payments and Global Finance Podcast: Dante Disparte on Stablecoins and the Future of Finance Industrial Policy Can Lift Productivity—but Comes With Risks How Ghana’s Central Bank is Helping the Economy Recover Back to Basics Video: What is Economics?  F&D MAGAZINE More Data, Now What? (Credit: Alex Robbins) We live in a galaxy of data. New data sources and techniques are challenging not only how we see the economy, but how we make sense of it. In the December issue of Finance & Development, prominent academics and policymakers seek to answer the question, “More Data, Now What?”   This issue of F&D (PDF) explores how we can distinguish between meaningful signals of economic activity and noise in the age of AI, and how we should use them to inform policy decisions. It considers the extent to which new sources of data can complement or even replace official statistics. And, more fundamentally, it asks whether we are even measuring the metrics that matter most in today’s increasingly digital economy.   “To serve the public good, data must help us see the world more clearly, respond intelligently to complexity, and make better decisions,” writes Gita Bhatt, editor-in-chief of the magazine. “Data, after all, is a means not an end.” Explore the Issue FINTECH How Stablecoins Can Improve Payments and Global Finance Stablecoins are rapidly gaining influence in global finance. But their success will depend on closer cooperation among policymakers, regulators, and the private sector. When it comes to regulation, major jurisdictions are taking different stances in key areas. Some risks are being mitigated, but differing approaches create arbitraging opportunities, where issuers could exploit gaps between jurisdictions and locate their stablecoins where oversight is weaker.   The stakes are high. Stablecoins promise to make international payments faster, cheaper, and more accessible, especially for underserved populations and regions where traditional banking is costly or unavailable.   But this innovation also comes with risks. Stablecoins could trigger currency substitution, undermining national monetary policy, and they may be used to circumvent capital flow management measures. Their pseudonymity and ease of cross-border transfer also raise concerns about illicit activities. Meanwhile, their potential benefits could be undermined by a proliferation of stablecoins that lack interoperability. Read the Blog PODCAST Dante Disparte on Stablecoins and the Future of Finance Technology is often what drives big changes, but innovations like cryptocurrencies and blockchain are transforming the world of money at breakneck speed. Dante Disparte heads strategy and global policy at Circle, which issues two of the world’s most widely used stablecoins. In this podcast, he says that stablecoins can help overcome inefficiencies in the traditional banking system without compromising financial integrity.  Listen to the Podcast INDUSTRIAL POLICY Industrial Policy Can Lift Productivity—but Comes With Risks and Trade-offs Industrial policies can make a difference, from jump-starting domestic industries to transforming an entire economy. But such gains are not guaranteed, and these measures can weigh on fiscal sustainability and economic efficiency.   This is why governments will need to focus even more on careful policy design and implementation. Our new report shows that industrial policy is associated with better economic outcomes in targeted industries, particularly in countries with strong institutions. But when it comes to total-factor productivity, the estimated gains are small.  Read the Blog AFRICA How Ghana’s Central Bank is Helping the Economy Recover It’s been three-and-a-half years since a combination of homegrown vulnerabilities and external shocks triggered a severe macroeconomic and debt crisis in Ghana. Now the country is in a different place. Underpinned by an IMF-supported program, Ghana’s economic recovery is steadily gaining momentum, with a significant decline in inflation, an increase in international reserves, and a more resilient financial system. In his conversation with the IMF’s Abebe Aemro Selassie, Governor Johnson P. Asiama discusses how Ghana’s central bank is playing a vital role in the country’s journey to macroeconomic stabilization.  Read the Blog Back to Basics: What is Economics? Economics isn’t just about numbers, it’s about people and the choices we make every day. Imagine every decision we make—about our jobs, homes, businesses, money, and time—as a single thread. Economics is the study of how these threads weave together, forming the patterns that shape our lives and societies. Watch our Back to Basics video to learn more. Watch Here CAUCASUS AND CENTRAL ASIA IMF Newsletter on the Caucasus and Central Asia Check out the latest IMF newsletter on the Caucasus and Central Asia! It explores how the region is navigating global uncertainty while building resilience and fostering long-term growth. Read the newsletter here and subscribe here to receive future editions directly in your inbox. Thank you very much for your interest in the Weekend Read! Be sure to let us know what issues and trends we should have on our radar.  Noha Elbadawy  Editor | IMF Weekend Read   nelbadawy@IMF.org Stay connected with the International Monetary Fund: