Post by Boston University Global Development Policy Center

Gross fixed capital formation (GFCF) is a key measure of a country's investment in fixed assets like machinery and infrastructure that support future economic activity. New peer-reviewed research by Daniel Rinner, Kevin P Gallagher and Rebecca Ray published in the Journal of Development Economics finds International Monetary Fund programs have had null or negative impacts on GFCF in low- and middle-income countries from 1990-2024. 💡 These findings support a rethinking of longstanding approaches to IMF program design that emphasize fiscal consolidation. Read more: https://lnkd.in/gXEbMh4w