Finance 2017

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 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