Central bank independence and the mandate—evolving views Jerome Powell makes a strong case for limited independence within a democratic framework, warning against a central bank widening its remit and scope too far Central banks are facing an epic battle Where next for inflation, interest rates and economic growth? Steve Schifferes believes that fears of a 1970s-style stagflation could become a reality Monetary policy tightening and the green transition Isabel Schnabel argues that unprecedented investments are needed in technical innovations and renewable energy to protect our planet

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A response to criticisms of proposals to overhaul the EU fiscal framework The European Commission has proposed an important and ambitious overhaul of EU fiscal rules. Marco Buti, Jakob Friis and Roberta Torre respond to the criticism Monetary policies that do not subsidise banks Paul De Grauwe and Yuemei Ji argue that a better policy would avoid transferring central bank profits to commercial banks New EU fiscal rules and governance challenges Guido Lorenzoni, Francesco Giavazzi, Veronica Guerrieri and Leonardo D’Amico argue for a new system of fiscal rules that goes in the direction of a political and fiscal union The end of ESG Alex Edmans argues that ESG shouldn’t be put on a pedestal compared to other intangible assets that affect both financial and social value Achieving a full banking and capital markets union Don’t look only to Brussels to increase the supply of safe assets in the European Union, Francesco Papadia and Heliodoro Temprano Arroyo argue If it doesn’t trade, is it really marketable debt? Rebecca Christie says Europe’s bond markets are essential infrastructure, just like the power grid
Scaling up sustainable finance Volz and Schoenmaker discuss the climate investment and SDG financing gap Reflections on DeFi, digital currencies and regulation Jon Cunliffe reflects on recent crypto market developments, and discusses the work that authorities are doing on the regulation of crypto stablecoins and a potential central bank digital currency
The BVI – resilient and rebuilding The BVI is a leading player in the global economy. Simon Gray says this demonstrates the strength and resilience of the financial services sector Embracing financial inclusion WCR interviews Josephine George, Managing Director of the Bank of St Helena, who discusses the Bank’s embracing of financial inclusion in an ever-changing world
The beginning of the end for cryptocurrencies Jon Danielsson argues that cryptocurrencies have now reached the beginning of the end as the factors fuelling their success have come to a standstill Containing trade These are disruptive, challenging times. Graham Bright considers the role of the container ship in enabling global trade Crypto dominoes Cryptoassets promise radical change in how people pay, save and invest. Fabio Panetta considers the bursting crypto bubbles and the destiny of digital finance The European Climate Law and the ECB The EU has adopted the European Climate Law. Frank Elderson considers how the European Central Bank will be affected What can we learn? Lael Brainard considers the lessons learned from the pandemic, supply shocks, inflation, and the challenges for monetary policy A global climate risk capital Helen Souza discusses Bermuda’s push to become the global climate risk finance capital Monetary policy in difficult times The UK economy has been buffeted by large disturbances in the last couple of years. Andrew Bailey sets out the key elements of monetary and financial stability policy Innovation in post trade services Jon Cunliffe discusses the impact that crypto technologies could have on post-trading infrastructure. He focuses on the possible opportunities, risk and impact on the provision of public infrastructure Monetary policy in the euro area Christine Lagarde says the ECB will not let this phase of high inflation feed into economic behaviour and create a lasting inflation problem
InterExec - a UNIQUE NETWORK for OUTSTANDING TALENT InterExec are a London based global consultancy working with C-Suite Senior Executives across all major business sectors, as they confidentially seek their next new challenge Reforming British economic policy Economic policy in Britain is at a crossroads. Patrick Minford argues that a change of leader creates an opportunity to reform policies which are set to create economic disaster
Monetary policy and the Great Volatility The Great Moderation was a period of prosperity. Isabel Schnabel argues that it is up to central banks whether today’s challenges will lead to the Great Volatility At the heart of global markets Elise Donovan outlines the pivotal role that the BVI plays in supporting the global economy, which lies in the expertise and services that the BVI offers
A story of tailwinds and headwinds Aggregate supply tailwinds are turning into headwinds, raising inflationary pressures and calling for a policy reset, argues Agustín Carstens Beyond GDP Paul Allin, Diane Coyle and Tim Jackson argue that changing how we measure progress is key to tackling a world in crisis
Achieving net zero emissions High-quality, reliable, and comparable gauges are lacking. Charlotte Gardes-Landolfini and Fabio Natalucci on how to close the data deficit Making sense of ESG data There is a regulatory push towards the disclosure of ESG information. Martijn Groot says there is a need for a more comprehensive approach to data preparation
Bermuda: a fintech hotspot Bermuda is an innovation hub for digital asset companies to test the world’s ground-breaking solutions. Michelle Chivunga discusses a world class jurisdiction with a forward-thinking government TISE’s strategy for sustainable growth In this Q&A Cees Vermaas explores the impact of macro-economic conditions on latest listing trends and the execution of a strategy to deliver a business model for sustaining future growth
New tides Investment banks have operated in easy economic conditions over the last decade. Nat Benjamin says these banks must act now to prepare for challenges such as climate change and new technology Some lessons from the crypto winter Jon Cunliffe sets out what he thinks are the lessons from the recent instability and losses in crypto markets – also called the ‘crypto winter’
Cryptoassets and decentralized finance Recent turbulence has exposed vulnerabilities in the crypto space. Lael Brainard argues that for stability it is important to ensure the regulatory perimeter encompasses crypto finance Rowing in unison Victoria Cleland looks at the progress of the G20 plan to make crossborder payments cheaper, faster and more transparent, and says for this to succeed all stakeholders must work together
Is the dismal science back? Daniel Dăianu looks at the role of economics in society and says miracles are not possible, and economics cannot be seen as alchemy Meeting the challenges International harmony has turned to hatred, co-existence to conflict, and welfare to warfare. Graham Bright discusses technologies that can reduce friction in international trade EU’s proposed crypto regulations are flawed The crypto markets are in turmoil. Karel Lannoo believes the proposed regulatory framework is not the right remedy
Fiscal support and monetary vigilance Olivier Blanchard and Jean Pisani-Ferry consider the economic policy implications of the Russia-Ukraine war for the European Union Brand implications for successful M&A Gonzalo Brujo shares his insight into ensuring a brand is market-ready and has considered all aspects of strategy for the best outcomes of any prospective deals Climate capital The BoE recently tested the UK’s largest banks and insurers on how prepared they are for financial risks caused by climate change. Sam Woods reviews the results

ETF ePub

Old dogs, new tricks Adapting central bank balance sheets to a world of digital currencies. Andrew Hauser argues that we need to understand these impacts and build them into the design of CBDCs DLT-based enhancement of crossborder payment efficiency Dirk Zetzsche, Linn Anker-Sørensen, Maria Lucia Passador and Andreas Wehrli provide an initial analysis of the legal challenges related to DLT-based payment systems EU economic resilience tested The EU has revised growth forecasts down. Maarten Verwey, Laura Bardone and Kristian Orsini say the Russian invasion is exacerbating pre-existing headwinds to economic growth For a few cryptos more: the Wild West of crypto finance Fabio Panetta argues that bringing cryptoassets safely into the regulatory perimeter would promote innovation, whilst avoiding their widespread use for illicit activities and setting the stage for a new bubble Avoiding a doom loop Patrick Minford argues that British economic strategy post-COVID should prioritise growth and overrule conventional Treasury thinking The economic policy consequences of the war Jean Pisani-Ferry says the Ukraine war will have significant impacts on the EU, arising from oil and gas supply shocks, energy independence measures, the inflow of refugees and boosted defence spending Recollections on financial stability Jon Cunliffe reflects on the key lessons he has learnt about financial stability and highlights longer-term challenges such as climate change and crypto, as well as the current situation, for financial markets Hope for the best, plan for the worst Graham Bright considers the global trade landscape post pandemic, and with current international tensions says we should hope for the best outcome and plan for the worst Recalibrating global growth The British Virgin Islands has steadily increased its role in the global financial system, Elise Donovan discusses how the BVI will aid the post-COVID recovery Cryptocurrencies and the war in Ukraine Jon Danielsson argues that the implications for the future of cryptocurrencies will be considerable A deeper shade of green? Martijn Groot considers the reasons why ESG data integration is the key for finance firms Climate finance and development Climate finance is treated as a form of aid support. Saliem Fakir argues that a shift is needed to investment support that would economically transform Africa Preparing for the financial system of the future Lael Brainard pits the case for the role a US CBDC could play in bolstering financial stability as the use of stablecoins and cryptocurrency grows and other countries issue their own CBDCs Stablecoins: growth potential and impact on banking Gordon Liao and John Caramichael the huge growth of stablecoins and consider the broad impacts on the financial system A lose-lose policy for global recovery Joseph Stiglitz and Kevin Gallagher argue that the IMF surcharges worsen potential outcomes for both the borrowing country and its investors Digital currencies and the soul of money What holds the monetary system together at its core? Agustín Carstens takes inspiration from Germany’s literary giant Goethe to reflect on the soul of money in the digital era Dialogue in a changing world The challenges facing the world today are unprecedented. Christine Lagarde says they can only be addressed by integrating scientific analysis into policymaking and acting together Adapting to change and consensus COP26 has shown that consensus is not just confined to politics. Graham Bright considers the finance sector’s role in promoting collaborative trade The present and future of money in the digital age The digital euro is an ambitious goal that can improve the efficiency of the financial system. Fabio Panetta says we must make it a driver of stability and inclusive progress The challenges of the digital euro Denis Beau argues it is unlikely that banks will be erased from a future payments landscape in which stablecoins and central bank digital currency dominate Under the western sky: the crypto frontier Carolyn Wilkins talks about cryptoassets and the ‘financial ecosystem’ they are a part of. She looks at the risks and opportunities decentralised finance may bring and the regulatory response to these Stablecoins and payments innovations Christopher Waller reflects on stablecoins, raises the risks and benefits with stablecoins, in particular the lack of a regulatory and supervisory framework 2021 proves to be an exciting year for IPOs Maxim Manturov takes a look back at the top IPOs of 2021, exploring the reasons behind their success and how they are currently performing Laying the foundations for a net zero financial system Andrew Bailey sets out the work the Bank of England is doing on climate change to ensure firms address climate risks, using the power of disclosure to incentivise change International trade, global supply chains and monetary policy Silvana Tenreyro says global supply chains can improve a country’s productivity and income. But the benefits they bring are not evenly spread across sectors What to do if the inflation increase is persistent Charles Goodhart and Manoj Pradhan consider the risks if inflation stays high, and call on central banks to develop plans to deal with persistent inflation Putting climate scenarios into action Sarah Breeden shares lessons we have learned from designing and applying climate scenarios, as well as some thoughts on their future, including the vital contribution research needs to make CBDC in an historical perspective Monetary transformations through history have been driven by changing technology and the demands to effectively satisfy the functions of money. Michael Bordo argues that technological change is inevitable Better sustainability data needed To accelerate the low-carbon transition in capital markets investors need trustworthy sustainability data. Alexander Lehmann says regulators should remain alert to misconduct in capital markets Is ‘crypto’ a financial stability risk? Jon Cunliffe looks at the impact of ‘crypto’ on the stability of the UK’s financial system and asks whether the world of ‘crypto finance’ poses risks to financial stability Finance disrupted New technologies are disrupting every corner of the financial sector. Benoît Coeuré focuses on the role that central banks are playing in ensuring that technological innovation is a force for good Monetary policy during an atypical recovery The economy is back from the brink, but not completely out of the woods. Christine Lagarde says the euro area is going through a highly atypical recovery Monetary arithmetic and inflation risk The balance sheets of the ECB, BOJ and the Fed increased sevenfold between 2007 and 2020. Marek Dabrowski believes a continuation of asset purchasing involves the risk of higher inflation The hard yards Andrew Bailey looks at the varying forces currently acting on the British economy and what they mean for monetary policy The inherent value of IFCs toward more sustainable finance IFCs facilitate the efficient flow of capital required by the global economy. Phil Graham argues that they are ready to support the transition to sustainable investing The green transition, finance and diversity: aim high, shoot higher René Karsenti and Apostolos Thomadakis argue that financing the energy transition requires a comprehensive shift in how the financial system works Can climate change be tackled without ditching economic growth? Klaas Lenaerts, Simone Tagliapietra and Guntram B Wolff explore whether decarbonisation and economic growth are compatible to reach net zero by 2050 Public finances in the EU COVID-19 has led to governments borrowing at unprecedented levels. Mehmet Burak Turgut discusses EU government finances as well as relevant policy priorities to ensure healthier public finances in the future The impact of fintech on central bank governance Central banks are facing unprecedented technological transformation. Marianne Bechara, Wouter Bossu, Yan Liu, and Arthur Rossi consider the key legal issues central banks face from fintech on their governance Free trade under Brexit Many economists have claimed that Brexit would damage the UK economy. Patrick Minford considers the assumptions made and Brexit benefits to the UK have been widely underestimated COVID-19 lessons from Nigeria The pandemic has had severe impacts on Nigeria. Mma Amara Ekeruche and Adedeji Adeniran examine the macroeconomic policies adopted and what can be learnt by other developing economies A solution in search of a problem? The payment system is changing in profound ways. Christopher Waller focuses on whether a CBDC would address any of the problems affecting payments Regulating crypto assets Crypto assets and blockchain technology have triggered a huge debate. Daniel Dăianu believes that updating the current regulatory framework is a must for governments and central banks SPACs in the gap Rebecca Christie considers special-purpose acquisition vehicles, and believes they could fill a gap in European equity markets and lure risk-averse investors off the sidelines A new asset class Alexander Lehmann says the proposed EU green bond standard will be less prone to ‘greenwashing’, and the widest possible set of issuers and jurisdictions should be encouraged to use the standard The battle for the soul of the financial system Stephen Cecchetti and Kim Schoenholtz argue that we don’t need CBDC to solve financial system problems, and hope that central banks stop short of a universal, elastically supplied, interest-bearing digital currency Regulatory divergence or parallel tracks? Alexander Lehmann writes that post-Brexit UK bank regulation is not likely to compromise on international standards, but will place greater emphasis on competition, making close UK-EU dialogue essential Parachute pants and central bank money There is a global rush to roll out CBDCs. Randal Quarles suggests this is akin to the 1980s parachute pants fad and the fear of missing out The geopolitical relevance of CBDCs CBDCs could be useful as a means for central banks to record transactions in an increasingly cashless economy. Brunello Rosa and Alessandro Tentori consider the case of China A new dawn for payments Victoria Cleland talks about the evolution of payments systems in the UK, the role of the RTGS, and says the payments industry must work together to build a payments infrastructure for future generations The future of cryptocurrencies Cryptocurrencies have foreshadowed a potential digital future for money. Graham Bright sees blockchain as an enabler in the growth of the financial system and digital money Tackling climate for real: progress and next steps Andrew Bailey talks about the work central banks have done on climate change, and how it will need to evolve The BVI fintech transformation From a traditional financial services centre to a global fintech hub, Simon Gray charts the emergence of the BVI as an innovation and investment hotspot across the fintech and digital space Private money and central bank money as payments go digital Technology is driving dramatic change in the US payments system. Lael Brainard provides an update on CBDCs and a digital dollar Stablecoins: what's old is new again Christina Segal-Knowles talks about stablecoins. She looks at how they could be regulated if they are used as a form of payment A new template for the European fiscal framework The European fiscal rules have been suspended to enable member states to combat the COVID crisis. Martin et al argue this is an opportunity for ambitious reform of a now clearly outdated fiscal framework Towards a green capital markets union Christine Lagarde considers the European Union’s transition towards a sustainable economy that will be backed by the growth of sustainable finance Do we need ‘public money’? The Bank of England has issued banknotes for over 300 years. Jon Cunliffe talks about future of money in the UK in an increasingly digital world Central banks in a shifting world Philipp Hartmann and Glenn Schepens provide selected takeaways from the ECB’s Sintra Forum, including whether globalisation is reversing and the role of fiscal policy for the post-COVID recovery The conflict between CBDC goals and design choices Central banks have a growing interest in digital currencies. Antonio Fatás argues that CBDCs alone will only achieve an inclusive payment system if they ensure competition Public support for private innovation Dave Ramsden talks about how the Bank of England supports the safe development of fintech services through monetary and financial stability Time to reset? Giovanni Tria and Angelo Federico Arcelli ask is a renewed Bretton Woods agreement a concrete option to favour a new economic expansion phase in the post-pandemic world? Digital assets and Africa The long-term economic outlook for Africa is positive. Elise Donovan examines the enormous potential and the opportunities for wealth creation What the British government needs to do to get Brexit done post-COVID Patrick Minford considers the options available to the UK government to ensure a successful Brexit Will 2021 in CEECs look better than 2020? Mehmet Burak Turgut is optimistic about CEE growth in 2021 following the successful development of COVID vaccines Digital currencies and the future of the monetary system Does the economy need digital currencies? Agustín Carstens asks who should issue them, how should they be designed and what are the implications for the monetary system? The Brexit dust begins to settle The phase of greatest Brexit-related uncertainty for the European financial sector ended on 1 January. Nicolas Véron believes it is increasingly apparent that London will be less dominant than before Digging for gold Giulio Cornelli, Sebastian Doerr, Leonardo Gambacorta and Ouarda Merrouche discuss how regulatory sandboxes help fintechs raise funding CBDCs risk becoming a gigantic flop CBDCs are increasingly being discussed, but with little focus on their fundamentals. Peter Bofinger and Thomas Haas consider the design options Climate change and central banking The ECB will contribute within its mandate to tackling climate change, acting in tandem with those responsible for climate policy, says Christine Lagarde Embracing digital innovation Simon Gray discusses the benefits of embracing digital innovation to help drive economic recovery
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