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 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