Avoiding the storm: climate change and the financial system Climate change poses significant risks to the economy and to the financial system, Sarah Breeden asserts, and calls for action today Reforming the global reserve system The IMF will turn 75 next year. José Antonio Ocampo believes updating and reforming some aspects of its core functions should be considered The euro area: creating a stronger economic ecosystem Europe has been slow to produce a fully developed financial ecosystem. Christine Lagarde argues that the time is ripe for the euro area to show new resolve and complete the banking and capital markets unions

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A new horizon The building blocks for a transition to a low-carbon economy are being put in place. Mark Carney believes further progress will be driven by coherent government policies Regulating fintech: ignore, duck type, or code Regulation of fintech is still in its early stages. Marlene Amstad considers the ongoing policy deabte
No deal is the best deal for Britain Patrick Minford considers the options for the UK as they reach the endgame in their negotiations with the EU, and finds that a No Deal Brexit is a recipe for economic success Sovereignty in a globalised world Countries need to work together to exercise sovereignty in a globalised world, says Mario Draghi. EU membership helps countries withstand external pressures and achieve policy goals they could not realise alone The European Union and money laundering Money laundering scandals at EU banks have become pervasive. Joshua Kirschenbaum and Nicolas Véron detail the current AML architecture’s fundamental weaknesses and propose a new framework Should the ECB care about the euro’s global role? Are recent shifts in global governance a reason to strengthen the global role of the euro? Benoît Cœuré argues that policies that make the euro more robust make the debate relevant to the ECB Global economy threatened by ‘sustainable’ investments Governments are pressuring portfolio managers to invest their clients’ funds in sustainables. Martin Hutchinson critically examines the arguments made in favour of investing in sustainables Universal basic income and the Finnish experiment Catarina Midoes examines the preliminary results on the Universal Basic Income experiment in Finland, and what they mean for the long-standing questions over the potential impact of UBI in developed countries The euro – a tale of 20 years The financial crisis has laid bare the weaknesses. Marco Buti, Maya Jollès, and Matteo Salto consider the priorities going forward to complete the EMU Risks to banks – from inside and out Banks have become more resilient, but they still face a number of risks and challenges. Sabine Lautenschläger says plenty of work still lies ahead for banks and supervisors Reining in shadow banking Leveraged finance is booming, and the central banks are bystanders. Dirk Schoenmaker argues that there are unused regulatory powers that could yet rein in unsustainable levels of leveraged finance The euro: from monetary independence to monetary sovereignty The euro is the second-most important global currency. Lourdes Acedo Montoya and Marco Buti argue that Europe should boost the international role of the euro Options for Greek bank restructuring After the ESM programme authorities can now consider the legacy of NPLs and private sector debt. Alexander Lehmann looks at the options A European fiscal capacity can improve stabilisation The architecture of the euro area remains incomplete. Jan Stráský and Guillaume Claveres argue that fiscal risk sharing can avoid permanent transfers EU budget implications of a no-deal Brexit A no-deal Brexit would mean the UK’s contributions to the EU budget fall to zero. Zsolt Darvas calculates the estimated budget shortfall and how the burden would fall across different member states Europe and the euro 20 years on We should consider the gains made as a result of having one market with one money, says Mario Draghi, outlining how the Single Market has benefited the people of Europe over the past 20 years The economics of cryptocurrency pump and dump schemes Hamrick et al highlight the need for concerted efforts from industry and regulators to fight cryptocurrency price manipulation The Isle of Man’s banking sector - where are we now and what is the future? The banking industry is undergoing a seismic shift. John Hunter is confident that the Isle of Man is well-placed to face future changes The international role of the euro Konstantinos Efstathiou and Francesco Papadia assess whether the euro area should pursue a greater international role for the euro, as outlined by Jean-Claude Juncker, and how it might go about doing so The role of the European Union in fostering convergence Benoît Cœuré focusses on the CESEE economies to explain how completion of EMU can accelerate convergence and foster cohesion in Europe The case for a central fiscal capacity in EMU Marco Buti and Nicolas Carnot argue that whilst financial union and a euro area fiscal stabilisation are substitutes in normal times, they are complementary in bad times The Federal Reserve’s framework for monitoring financial stability Transparency will enable the Federal Reserve to serve the needs of the American public and strengthen democratic legitimacy, Jerome Powell believes A more stable EMU does not require a central fiscal capacity Michel Heijdra, Tjalle Aarden, Jesper Hanson and Toep van Dijk argue that stronger financial market risk sharing and more effective use of fiscal stabilisers will mean no additional fiscal risk sharing The Big Con: reassessing the ‘Great’ Recession and its ‘fix’ The general consensus is that bad banks caused the Great Recession. Laurence Kotlikoff argues that it was a bad banking system that was the real problem Cyborg supervision James Proudman explores the impact of AI, and advanced analytics more broadly, on the safety and soundness of the firms the Bank of England supervise The outlook for the euro area economy Completing EMU has become more urgent over time, not less urgent, says Mario Draghi. Completing the banking union and starting work on the capital markets union are the best ways to respond to the threats currently facing our monetary union Winds of change: the case for new digital currency The case for digital currency is not universal. Christine Lagarde says we should investigate it further, seriously, carefully, and creatively What are we learning about AI in financial services? Throughout the history of banking, new products and processes have been an area where problems can arise. Lael Brainard warns that we should be continually vigilant for new issues in the rapidly evolving area of AI The ECB and financial stability Central banks have shown that they are effective crisis managers, but they often lack the tools to pre-emptively address financial stability risks, says Luis de Guindos. The ECB now has the necessary competences to identify such risks Cryptocurrencies: financial stability and fairness Jon Danielsson argues that if private cryptocurrencies were to find widespread economic use the result would be increased financial instability, inequality, and social instability Reforming the EU fiscal framework: a proposal by the EFB Governments must prepare for the next crisis. Roel Beetsma et al argue for a simpler and more transparent EU fiscal framework Fintech and the search for full stack financial inclusion Lael Brainard considers the current state of fintech and finds that there is reason to hope these new technologies will be combined in ways that move the needle on financial inclusion Fixing the euro needs to go beyond economics The agenda to fix the euro is hampered by conflicting national interests. Anne-Laure Delatte argues that the political governance of the EU requires reforming to overcome this coordination failure True finance – ten years after the financial crisis Mark Carney reflects on how the global financial system has become safer, simpler and fairer over the past ten years. This new financial system is a system that can serve households and businesses in bad times as well as good The international use of the euro What can we learn from past examples of currency internationalisation? Emmanuel Mourlon-Druol analyses four previous cases of debates on international currencies to reveal the different scenarios associated with their greater use Building a resilient Economic and Monetary Union Luis de Guindos urges authorities to complete reforms, focusing on reducing and sharing risk across borders and completing the banking union Increasing the effectiveness of European fiscal rules Pierre Beynet argues that increased ownership requires more flexibility and built-in positive incentives, such as allowing deviations when financed with GDP-linked bonds, which would also improve fiscal sustainability Euro area reform: an anatomy of the debate Jean Pisani-Ferry summarises the CEPR Policy Insight No 91 proposals and also addresses some of the points raised in a subsequent Vox debate on euro area reform From the great moderation to the great recession and beyond Don Kohn considers what we can learn from the last global financial crisis. He says that complacency in good times can ultimately store up problems for the global economy and financial system A financial union for the euro area How much should the economic and monetary union be deepened? Poul Thomsen shares his thoughts IMF reform: the never-ending quest De Gregorio et al introduce the latest Geneva Report on the World Economy, and highlight seven key developments affecting the monetary environment and the implications for the Fund The euro area: current status and challenges ahead Monetary policy has played the key role in the recovery, but cannot remain the only game in town, says Luis de Guindos. He adds that we now need action in other policy areas – notably fiscal policy and structural reforms Bermuda: leading the way in fintech In early 2018 Bermuda launched a fintech initiative to become a global technology hub. Caroline Caton reviews how legislation is achieving this goal Bulgaria and the ERMII Alexander Lehmann examines the criteria for Bulgaria's entry into the ERMII and the banking union, and the precedent it sets Banks as potentially crooked secret keepers Tim Jackson and Laurence Kotlikoff argue that the optimal policy for weeding out crooked bankers is full financial disclosure Monetary policy in a changing economy The US economy faces a number of longer-term structural challenges. Jerome Powell says that addressing the federal budget deficit will become increasingly important as the population ages Could the 7+7 report’s proposals destabilise the euro? In a response to Guido Tabellini, Jean Pisani-Ferry and Jeromin Zettelmeyer respond to some of the criticisms of their proposals, focusing on the broad issues of debt restructuring as ‘ultima ratio’ and regulating banks’ sovereign exposures The great fiscal lever: an Italian economic obsession Alessio Terzi argues that the efficiency of Italian investment is currently low. Specific measures can be taken to improve this situation and only once this is done should the public investment lever be used forcefully Central bank digital currency: why it matters and why not The potential benefits and risks of digital central bank money for use by the general public have been widely debated. Dirk Niepelt looks at the consequences of substituting outside for inside money Why universal basic income costs far less than you think In light of the huge benefits available from a UBI, it’s a waste of time to argue over wildly inflated cost estimates. Elizaveta Fouksman says the numbers are out there – we can pay for a basic income Risk sharing and market discipline: finding the right mix Guido Tabellini argues that proposals to enhance market discipline in the euro area are counter-productive because they increase the vulnerabilities of countries with high legacy debts Whither a fiscal capacity in EMU Lars Feld argues that the recent CEPR Policy Insight on euro area reform fails to address convincingly legacy debt problems Delivering a safe asset for the euro area Lorenzo Bini Smaghi and Michala Marcussen illustrate a proposal for a Purple bond transition that could offer a path to genuine Eurobonds The economics of blockchains Markus Brunnermeier and Joseph Abadi identify a ‘blockchain trilemma’ whereby no ledger can fully satisfy the three desirable properties of decentralisation, correctness, and cost-efficiency The blockchain catalyst for change Michael Casey, Jonah Crane, Gary Gensler, Simon Johnson and Neha Narula explore blockchain technology applications, and the potential uses for the financial sector Next steps after the Euro Summit The group of 14 French and German economists behind the recent CEPR Policy Insight argue that the Euro Summit statement represents a constructive first step and crosses red lines that were considered taboos only a few months ago Deepening EMU – political integration and economic convergence Recognising the design flaws of the currency union cannot mean calling the whole project into question. The only viable option is to continue the deepening of EMU through political and economic convergence, Yves Mersch argues Pace of trade finance digitalization International Chamber of Commerce’s Global Survey shows a move to greater digitalization, and believe that this will lead to a boost in economic growth and sustainable development Blockchain, smart contracts, and information Blockchain technology potentially enlarges the contracting space using tamper-proof smart contracts. Lin William Cong and Zhiguo He consider the pros and cons of the technology Euro area reform cannot ignore the monetary realm Jérémie Cohen-Setton and Shahin Vallee write that the recent CEPR Policy Insight missed an opportunity to provide a balanced reform package A ‘what if’ approach to assessing proposals for euro area reform The policy discussion on euro area reform has entered a critical phase. George Papaconstantinou attempts a ‘what if’ experiment based on the proposals in the recent CEPR Policy Insight Beyond risk sharing and risk reduction Rafael Doménech, Miguel Otero Iglesias and Federico Steinberg argue that this risk can only be tackled with common instruments and policies at the European level, whose mere existence will reduce not only its magnitude but also its asymmetric consequences Resilience and continuity in an interconnected and changing world Lyndon Nelson considers the changes and advancements that have occurred during his 30 years in the City of London, and highlights the risks posed by cyber and other operational incidents, given the financial system’s increasing reliance on technology and data Digitalisation of money and the future of monetary policy Digitalisation can redefine the roles of banks and central banks. Peter Bofinger argues that banks could be massively challenged by new forms of intermediation Enhancing the ESM lending toolkit through a precautionary credit line Strengthening the ESM can help to prevent crises and enhance deeper financial integration in the euro area. Jochen Andritzky says mislabelling the ESM as ‘European Monetary Fund’ will not do the trick Some ways to introduce a modern debt Jubilee Charles Goodhart and Michael Hudson discuss debt overhang and the accompanying wealth inequalities, and argue that a modern Jubilee could come mostly from a land/property tax Monetary policy - end of history? Monetary policy must always react to new challenges, including whether to refine its targets or consider new tools, says Sabine Lautenschläger Are SBBS really the safe asset the euro area is looking for? Grégory Claeys argues that sound policies at the national level, combined with an ambitious reform of the eurozone architecture, would render unnecessary the provision of safe assets in the euro area via potentially hazardous SBBSs Europe’s future: the value of an institutional economics perspective To reform the European project which institutions and rules are needed and when? Nauro Campos and Jan-Egbert Sturm introduce a new eBook that makes the case that such questions are of fundamental importance for the future of Europe A glass half-full The Commission’s proposal for the next MFF provides a good basis for subsequent negotiations. But it has a number of deficiencies. Grégory Claeys and Zsolt Darvas make proposals as to how to improve them Is the global economy becoming more vulnerable to China’s debt situation? Deepanshu Mohan considers rising debt levels in China and the possibility of China exporting its debt, and asks what can be done Make euro area sovereign bonds safe again A recent CEPR Policy Insight suggests introducing sovereign bond-backed securities to play the role of safe asset in the euro area. Grégory Claeys argues that an improved euro area architecture would make all euro area sovereign bonds safer A plan to save the euro For the euro area to be stable and move forward productively substantial improvements in its operation are required, argues Jeffry Frieden Fiscal rules and the role of the Commission Thomas Wieser looks at the challenges to the central role of the Commission that have arisen as the rules-based fiscal framework in the euro area has been severely compromised Completing the Odyssean journey of the European monetary union Monetary union is at a crossroads, says Vítor Constâncio, and he expresses his views on the reforms needed to deepen and strengthen the EMU Completing Europe’s Banking Union Isabel Schnabel and Nicolas Véron ask what would be required for the Banking Union to be considered ‘complete’, and make the case for a modest approach to breaking the vicious circle between banks and sovereigns Cryptocurrencies, digital currencies, and DLT: what are we learning? Lael Brainard considers developments in digital technologies for payments, clearing, and settlement, and warns about the serious challenges that remain No deal is better than a bad deal The recent proposals for euro area reform have initiated an intensive debate. Peter Bofinger argues that the specific insolvency risk of euro area membership is the main risk that should be covered by joint risk sharing The shared response to climate change: turning momentum into action Sarah Breeden says climate change is a core financial risk for companies. It is a shared challenge for the private sector and financial authorities. And they need to take action together to respond to it Cryptocurrencies’ challenge to central banks Antonio Fatás and Beatrice Weder di Mauro argue that the risks of introducing a central bank digital currency are high, and that innovation in payment infrastuctures would be more efficient Risk reduction and risk sharing in EU fiscal policymaking Roel Beetsma and Martin Larch argue that the policy dilemma around a central fiscal capacity can only be overcome if fiscal risk sharing and risk reduction advance in parallel Past and future of the ECB monetary policy Having developed its monetary policy through four key phases, the ECB is a modern and effective central bank, says Vítor Constâncio. He adds that it is equipped to continue to deliver on the priority of price stability for euro area citizens Business priorities of global banks in 2018 The 'Global Banking Outlook 2018' is analysed by James Turner, who finds that banks need to embrace digital advances and fintech to drive opportunity Making (some) sense of cryptocurrencies Economists have been dismissive of cryptocurrencies, but fintech enthusiasts continue to see their disruptive potential. Antonio Fatás and Beatrice Weder di Mauro consider the theoretical and practical arguments on both sides of the debate Europe needs a broader discussion of its future When thinking about what will determine the prosperity and well-being of citizens living in the euro area, five issues are central. Guntram Wolff considers the CEPR Policy Insight and argues that it leaves aside some of the most crucial ones Making a reality of Europe’s Capital Markets Union André Sapir, Nicolas Véron and Guntram Wolff suggest that capital markets will only transform with concrete action, and that policymakers need to set priorities for the CMU project to move forward Moonwalking bears and underwater icebergs: hidden risks in markets Alex Brazier writes about how risks in markets can be hidden in plain sight or buried under the surface of the financial system Deepening EMU requires a coherent and well-sequenced package Marco Buti, Gabriele Giudice and José Leandro argue that the recent CEPR proposals seem unbalanced and carry significant risks, and could lead to more, not fewer, rescues Analysis of the proposal: 'A constructive approach to euro area reform' There is currently both an economic and a political window of opportunity for reform in the euro area. Andrew Watt discusses the strengths and weaknesses of recent proposals and makes recommendations for extensions and alternatives Blind spots of the 14 economists’ Policy Insight Sebastian Dullien argues that the recently published CEPR Policy Insight leaves too many questions open and fails to address a number of central problems of EMU architecture A transition in thinking and action Mark Carney takes stock of the progress made in addressing climate-related financial risks since the Paris Agreement of late 2015 The crux of disagreement on euro area reform A recent paper proposed reforms of euro area governance. Stefano Micossi considers the implications for financial stability of the eurozone The uncertain future of central bank independence The independence of central banks has again become a prominent subject in academia, politics and the media. Otmar Issing asks how this turnaround in opinion can be explained, and whether the independence of central banks will survive A compass to prosperity: the next steps of euro area economic integration The euro area should consider several areas of reforms in the coming months, including a modernized capital markets union, an improved banking union, and the creation of a central fiscal capacity, says Christine Lagarde Do wide-reaching reform programmes foster growth? Alessio Terzi and Pasquale Marco Marrazzo ask whether structural reforms have worked in the past, and consider the overall impact of reforms in the last forty years The Bank of England – open to fintech Dave Ramsden speaks about the importance of new technology in the financial services industry and the launch of the Bank of England's new Fintech Hub A time to share In the euro area, discipline is of the essence, but risk-sharing is no less important, Daniel Dăianu writes Monetary policy in the euro area Mario Draghi says that monetary policy still needs to be patient, persistent and prudent, despite improvements in the euro area economy The future of money Cryptocurrencies such as Bitcoin should be regulated to crack down on illegal activities and protect the financial system, Mark Carney warns Global repercussions of MiFID II Jan Hanika and Tim Sundberg look at MiFID II, how the European financial services ecosystem will be redefined, and argue that companies will need a clear and proactive strategy to deal with the challenges ahead Financial engineering will not stabilise an unstable euro area Paul De Grauwe and Yuemei Ji argue that financial engineering cannot stabilise a financial system that is fundamentally unstable How the ECB planted the seeds of the euro area crisis Athanasios Orphanides considers Europe's monetary policy and fiscal discipline, and writes that the ECB can make a positive contribution towards stabilizing the fragility of the euro area Breaking the stalemate on European Deposit Insurance EDIS is a necessary component of banking union, but no option has met sufficient consensus. Isabel Schnabel and Nicolas Véron propose an EDIS design that is institutionally integrated but financed in a way that is differentiated across countries Looking after our money Jon Cunliffe addresses the role of money in society and changes in the technologies that support it in our economy Bank bail-ins: lessons from Cyprus Panicos Demetriades examines the unintended consequences of the bail-in, which have proved more toxic than expected, and not just in Cyprus Cryptocurrencies don’t make sense Cryptocurrencies are supposedly the way of the future. Jon Danielsson finds them no better than existing fiat money or good investments Market-based finance: a macroprudential view Jon Cunliffe addresses the growth of market-based finance and the different challenges it poses to regulators as compared with banks The euro area economy is shedding the crisis legacies Increasingly fit again. There is scope for solid GDP growth above potential for some time, Marco Buti, Björn Döhring and José Leandro find Regulation within cryptocurrency markets Alex Larsen examines the different ways to regulate cryptocurrencies to ensure both protection and innovation The euro area’s three lines of defence The euro area needs reform. Benoît Cœuré argues that three lines of defence are needed to deliver a stable currency Economic crisis and structural reforms in Southern Europe: policy lessons Paolo Manasse and Dimitris Katsikas explore the economic, political, and institutional factors that differentially affected the success of these prescriptions from country to country Market finance and financial stability: will the stretch cause a strain? Alex Brazier considers the degree to which corporate credit markets have become stretched, and how well conditioned the wider economy is for that stretching Finance and investment: Europe’s lost decade Colin Mayer, Stefano Micossi, Marco Onado, Marco Pagano and Andrea Polo discuss the role of tax and regulatory policy in exacerbating the debt problems in the European Union The fall in productivity growth: causes and implications Silvana Tenreyro examines the UK productivity puzzle and reflects on what the data can tell us about future productivity growth and the direction of monetary policy Revisiting the notion of the EMF: policy and institutional issues A European Monetary Fund would help as a financing mechanism for a sovereign debt crisis and debt restructuring, Saurabh Kumar writes A global architecture for international trade: a collaborative approach Olivier Paul sheds light on the unprecedented changes facing the trade finance industry, and explains how ICC aims to positively shape the global trade landscape It pays to be paranoid: the importance of fiscal space Richard Sharp explains why financial stability is important, discussing the risk to financial stability arising from UK indebtedness and explains why it now may be a matter of concern Tight monetary policy is not the answer to weak productivity growth Policymakers must now address the legacies of the Global Crisis through innovation, education policies, and structural reforms, argue Maurice Obstfeld and Romain Duval From the consumer to the commercial world – how AI is driving intelligent payments We are entering an exciting new age with business able to proactively anticipate future trends, Russell Bennett writes Powell's Federal Reserve With the appointment of Jerome Powell as the next Fed’s chairman, President Trump break a tradition of bipartisan re-nomination and chooses someone who is not an economy by formation. Silvia Merler reviews economist’s opinions on this choice and the challenges ahead Fintech and cross-border payments Dong He analyses how financial regulation and central banking will need to respond to the acceleration of progress in fintech EMU - how much federalism? Peter Praet reviews how federalism has evolved in the EU, focussing on the issue of risk-sharing and governance within Economic and Monetary Union The time is right for a European Monetary Fund The third banking union pillar, the common European deposit insurance, is still missing. André Sapir and Dirk Schoenmaker propose to design the EMF as part of a broader risk-sharing and market-discipline agenda Rethinking financial stability Andy Haldane explains how the financial crisis has been a prompt for a complete rethink of financial stability and policies for achieving it Geofinance Sam Woods explores the impact of geography on the shape of finance – geofinance. With changes to the geopolitical landscape looming large, Woods predicts that geofinance will be the defining challenge of the next few years The eurozone: what’s next? The current recovery in the eurozone is an opportunity to lay the foundations for a more resilient euro area, Poul Thomsen asserts Unfinished business: The North Atlantic crisis and its aftermath Tamim Bayoumi writes that the North Atlantic recession and the eurozone depression were caused by different regulatory mistakes that started in the 1980s [De]Globalisation and inflation Mark Carney considers the impact of globalisation on inflation. He draws on the example of Brexit to illustrate how global factors can influence domestic inflation dynamics and the ability of central banks to achieve price stability Financial stability a decade after the onset of the crisis Janet Yellen defends financial rules introduced after the 2008-2009 financial crisis, backing policies that President Trump has deemed “a disaster” The interdependence of research and policymaking Mario Draghi says that unconventional policies like quantitative easing have been a success on both sides of the Atlantic Central banks still run money creation Daniel Dăianu argues that a very radical reform of the financial system will happen if there is another financial crisis Winners from globalisation Ben Broadbent looks at the distributional effects of globalisation and the parallels between the effects of growing trade and those of technical progress – including the role of the latter in rising inequality in the US Economics of the populist backlash Dani Rodrik argues that the populist backlash should not have been a surprise in light of economic history and theory Eurozone or EU budget? Confronting a complex political question The European Commission’s reflection paper is the latest document to ponder a distinction between EU and euro area budgets. Guntram Wolff asks if we need to split the two, and what would each budget be used for? Fund distribution: challenges and opportunities The pace of change is forcing asset managers to make extensive reviews of their business models, writes Sohail Jaffer A fine balance Mark Carney argues that escaping the low inflation/low wage/low growth trap requires more than a textbook rebalancing of macro policies across the major regions The economics consensus about Brexit Patrick Minford examines why the consensus of economics opposed Brexit, why they are wrong and demonstrates that no deal is the best deal Insurtech: the next frontier Sohail Jaffer examines the impact that financial technologies are having on the insurance sector Development review brings welcome focus on trade finance gap The UN review of the trade financing gap is a welcome step in addressing this chronic problem, the International Chamber of Commerce writes Responsive, innovative In a wide-ranging interview with World Commerce Review, Fiona Le Poidevin says TISE’s responsive and innovative approach is driving growth and creating a new capital markets option for SMEs We need a European Monetary Fund, but how should it work? André Sapir and Dirk Schoenmaker consider the changes needed to develop the ESM into a fully-fledged European Monetary Fund Financial integration in the eurozone should not be a tough sell With Brexit on the horizon Teunis Brosens argues that the remaining member states need to accelerate the realisation of a true capital markets union What could a euro-area finance minister mean? The idea of a euro-area budget and finance minister have been around for a long while, but the arrival of President Macron gives the proposals new impetus. Guntram Wolff asks why might the euro-area need a budget, and what would it do? China cannot finance the Belt and Road alone Alicia García-Herrero writes that other partners should consider financing some aspects of he OBOR initiative as they have a lot to gain from the project Monetary policy challenges for Europe: banking on the recovery Despite the challenges, the banking industry in the euro area is well-positioned to foster sustainable growth, states Yves Mersch Straw men in the debate on basic income versus targeting Martin Ravallion argues that five of the common arguments employed against basic income are really straw men that overstate the relative effectiveness of targeted transfers Where do banks fit in the fintech stack? Lael Brainard writes that close attention needs to be paid to technical, regulatory, policy and legal issues in the fintech sector to ensure trust and confidence in the financial system Building the infrastructure to realise FinTech’s promise Mark Carney says banks and fintech firms can expect tougher regulation as fintech becomes more widespread A little more conversation a little less action Andy Haldane explores how central banks could regain the public’s trust by changing the way they communicate Monetary policy and the economic recovery in the euro area Mario Draghi is confident that the ECB’s policy is working and that the outlook for the euro area economy is gradually improving Can Trump save the euro? The eurozone urgently needs an economic boost. Daniel Gros writes that US President Donald Trump may be just the person to deliver it The high road to a responsible, open financial system Mark Carney looks at London’s importance as a global financial centre, and how, against the background of the Brexit negotiations, the Bank will work to support global prosperity through an open global economy Global takaful: facing the challenge of digitalization Sohail Jaffer writes about how the takaful sector is embracing the opportunities and challenges of digitalization Brian Stuart-Young. International Banker of the Year In a Q&A with World Commerce Review Brian Stuart-Young says Antigua and Barbuda is well poised to establish the jurisdiction as a stable hub for the growing demand of foreign and local investments Brexit and the pound Ben Broadbent looks at the possible effects of Brexit on investment and the financial markets Innovation, technology, and the payments system Jerome Powell looks at where technological innovation is driving change in the payments system and the role of the authorities in keeping money safe Global pipes – challenges for systemic financial infrastructure Jon Cunliffe writes about the networks of global pipes for payment, settlement and clearing that make a global capital market and financial globalisation possible When the IMF evaluates the IMF The IMF’s candour should be a model for the other participants in the Greek lending, argues Charles Wyplosz Deutsche Bank’s struggle to raise capital: the bellwether for a new normal Iakov Frizis and Paul Lirette say European private banks will need to adjust to the ‘new normal’ of weak profitability and undergo a restructuring of their business model 54 states and infrastructure financing challenges in Africa Asmita Parshotam and Cyril Prinsloo examine the challenges African countries face in filling the infrastructure financing gap Climate change and fossil fuels: the growing urgency to divest Global efforts to mitigate climate change must soon take a heavy toll on future fossil fuel demand, Jeff Rubin writes Global Islamic wealth management: trends and opportunities Sohail Jaffer says there are several reasons why the Islamic niche of the industry is expected to outgrow conventional wealth management over the coming decade The test of progress - Europe, the euro and the future Sabine Lautenschläger says now is the best time for the reforms that are necessary to ensure Europe’s well-being Financial regulation since the crisis Daniel K Tarullo thinks there is a sound economic case for generally weakening the regulatory requirements applicable to the largest bank Risk-based capital requirements for banks and international trade Banu Demir Pakel, Tomasz Michalski and Evren Örs examine how Basel II capital requirements have affected trade finance An age of ultra-low interest rates? Daniel Dăianu writes that it is too early to say and that we need to bank on the reinvigorating force of the entrepreneurial spirit and pragmatic policies during the slow recovery underway Challenges for financial markets Jon Cunliffe reflects on the factors that have influenced London’s position as a global financial centre and considers some of the implications for European financial markets from the UK exiting the EU Sovereign debt in the euro area: too safe or too risky? Europe needs reforms if its debt is to meet the multiple expectations society attaches to it, and may require a degree of fiscal risk-sharing at euro area level. Benoît Cœuré discusses how to square the circle between risk and safety UK inflation steady at 0.6% Ben Barlow looks at post-Brexit inflation prospects in the UK Takaful: expansion potential Sohail Jaffer writes on the global growth prospects for shariah-compliant insurance Basic income - free money for everyone? Fleur de Beaufort examines the growing calls for the introduction of some form of unconditional basic income in Europe Ethics in economics: a missing link? Deepanshu Mohan briefly reiterate some of the key arguments attached in favour for accommodating ethical considerations in modern day economic theory Central banks and digital currencies Ben Broadbent looks at innovation in private sector digital currencies, asks what is a central bank digital currency, and what might be the economic implications of introducing one Cutting through the spin Ben Barlow examines how UK stocks and markets will be affected by Brexit
Going digital: the benefits of a digital organization in financial services The organization of digital efforts is a key aspect of every digital transformation and banks and insurance companies that are able to transform themselves will be better prepared to ride the digitalization, write Alejandro Gonzalez and Pedro Fernández
Rajan's craftsmanship Deepanshu Mohan reflects on Raghuram Rajan’s bold and independent term as Governor of the Reserve Bank of India Global economic trends in 2016 Ben Barlow examines the topics that may define the markets through the year Can the Union avoid a breakdown? Daniel Dăianu examines the immediate and long-term challenges to the European Union The eurozone needs less heterogeneity André Sapir argues that all eurozone members need to have institutions that ensure wage developments are in line with productivity developments, and that this is crucial for the sustainability of the EZ The power of harnessing data in the anti-money laundering fight Chrisol Correia examines how can financial institutions overcome the AML burden SMEs in need of diversified funding options The 2015 ICC Global Survey on Trade Finance reveals that bank funding constraints remain a major obstacle for SMEs. The answer is to increase their options says, Vincent O’Brien, trade finance expert and Chair of the ICC Banking Commission Market Intelligence Group Why is China finding it hard to fight the markets? Alicia García-Herrero writes that China is sitting on a pile of debt, and the only way out is to deleverage: more pain now for sustainable growth later Boardroom briefing In this briefing we have partnered with Atradius to pose questions and gain a better perspective of credit management and collection services, which can now be viewed as a core strategy requirement China's ETS: a vote of confidence in carbon markets Carbon markets have recently received a huge vote of confidence from China, Andrei Marcu writes A non-linear path to economic growth and prosperity Bermuda boasts an active corporate community which leverages its networks and which partners to help Deepanshu Mohan argues for a better incorporation of local political economy features in the process of achieving economic growth as a means-to-an-end goal of securing development The quest for financial stability, economic growth, and returns on investment in the post-crisis global economy Jonny Greenhill and Gianluca Riccio say that greater coordination is needed to strengthen the pace of what is currently a lacklustre recovery The third act of the Greek tragedy Bartosz Radzikowski writes that if the third act of the Greek tragedy does not run on a suitable and sustainable course, membership of the eurozone will be, for the first time, reversible More than a name, a reference In a Q&A with Olivier Bizon future developments in wealth management are discussed Regulations badly needed – the case of Islamic financial institutions The need to create uniform, universally acknowledged and followed standards is arguably the most pressing challenge for Islamic financial institutions, Katarzyna Sidło writes International financial institutions facing a credibility crisis! Deepanshu Mohan says that institutions such as the IMF are not prepared to meet the great macroeconomic challenges that lie ahead Managing risk through futures contracts Paul Cusenza addresses how entities can manage their price risk through futures contracts A ‘New Age’ of uncertainty Central bankers and policy makers have a much more complicated and difficult job nowadays, Daniel Dăianu writes Trade credit insurance Robert Nijhout says trade credit insurance is adapting to new markets and new trends in trade, ensuring its continued relevance to traders in facilitating trade Managing risk, enabling trade In a Q&A with Andreas Tesch future developments in credit insurance are discussed Unlocking the true value of data Ruairi McDonald writes that the asset management industry needs to be more forward thinking and innovative in approach Discerning Europe’s fiscal situation Deepanshu Mohan says that Europe has made a serious mistake by not strictly keeping a check on the implementation guidelines of the Maastricht Treaty External imbalances and the governance of the eurozone Daniel Dăianu argues that unconventional monetary policies are needed to enhance the chances for a longer term recovery The risk of OTC derivatives Chiara Oldani writes that the global regulatory framework has not yet intervened on the trading of Over-The-Counter (OTC) derivatives by non-financial operators, and that this constitutes a source of systemic risk Closing in on beyond GDP Jana Stöver writes on how to get a more accurate understanding of what could be embodied in the concept beyond GDP The light shines on trade finance Trade finance is a technique worth supporting, John Danilovich finds Financing global trade: opportunities and challenges on the horizon Matthew Ekberg says more needs to be done collaboratively between the public and private sector to remove any barriers to this important real economy driver of growth The global financial cycle and macro-prudential policies How can the ECB coordinate its policies better with the FED and other major central banks, for the sake of mitigating boom and bust dynamics in the global economy, has to be given more clear answers, Daniel Dăianu asks No need to change the eurozone Stability and Growth Pact Stefano Micossi and Fabrizia Peirce find that existing rules are fully capable of meeting cyclical oscillations of the economy or to finance to accommodate the short-term costs of structural reforms undertaken to strengthen debt sustainability in the medium-term Sukuk: an international asset class Sukuk is increasingly attractive to both issuers and institutional investors in Europe, Asia and the MENA region, Sohail Jaffer writes The EU and the City of London Robert Oulds says EU regulators threaten the UK’s position as a world leader in international business services Turning innovation into assets Mediolanum Asset Management Limited (MAML) has been awarded the World Commerce Review Most Innovative Asset Manager in Ireland 2014 Can trade credit insurance help your business become more successful? The advantages of trading with trade credit insurance are multiple, and ultimately lead to successful trading, Christine Gerryn asserts The euro and European geopolitics Daniel Dăianu examines the political dimension of the single currency area as well as its geopolitical relevance The ECB’s new policy package: a step in the right direction for intra-eurozone rebalancing Domenico Lombardi and Samantha St Amand analyze the impact of low inflation on debt dynamics and the adjustment of real unit labour costs in the eurozone countries under stress The OTC derivatives markets after financial reforms Cosmina Amariei and Diego Valiante provide a snapshot of the current status of the global OTC derivatives markets Islamic finance in Europe: unfulfilled potential An important landmark is due to be passed later this year with the establishment of the first fully-fledged Islamic bank headquartered in the eurozone, writes Sohail Jaffer Deepening financial reforms in China It is clear that the government is determined to increase market competition, reduce the monopoly power of the state sector, and restrain government intervention in the financial market, finds Dan Luo Currency wars Ben Southwood argues that there are no such things as currency wars, and that devaluations are not competitive The benefits of a good international collections agency A good international collections agency can turn a difficult situation with little chance of recovery into a seamless process with a much better potential outcome, writes Raymond van der Loos A European Glass-Steagall to preserve the single market Karel Lannoo argues for a structural separation in banking in an old-fashioned, rules-based approach Taming financial markets is a must for achieving stability Daniel Dăianu outlines why the Bretton Woods spirit and logic need to be rediscovered Better profits without increased sales or lower costs Christine Gerryn says that all companies should compare the cost effectiveness of credit insurance with other methods of managing credit exposure Regulatory recognition: facilitating growth Anthony Belchambers writes that a significant increase in cross-border trade in financial services is heavily dependent on the removal of unnecessary trade barriers Stable monetary policy is the only means to a stable economy Markets are great at finding prices and allocating resources in ways that make the individuals in society better off says Ben Southwood Emergence of bancatakaful worldwide The most rapidly expanding sector of the worldwide bancassurance industry – distributing insurance products via banks – is bancatakaful, explains Sohail Jaffer Making central banks serve the real economy Suleika Reiners says central banks should use their ability to create new money and channel it to meaningful investments What kind of fiscal union? The sovereign debt crisis in Europe brought back a debate on the lacking components of European integration. Marek Dąbrowski discusses The EU’s economic policy architecture after the ratification of the Fiscal Treaty Jørgen Mortensen writes that the Treaty does not offer a definitive solution to the problem of finding the appropriate budgetary monetary mix Finance and Markets Archive To link to archive articles click here