Opinion
The G7 should set an example of international cooperation and come out with a strong signal of unity and support for the euro-area. Only then will the cost of the crisis be temporary and manageable. This is our letter to Santa. I hope at least some -if not all -of these wishes can be fulfilled.
Blog Post
A textbook condition of international finance breaks down. Economic research identifies the interplay between divergent monetary policies and new financial regulation as the source of the puzzle, and generates concerns about unintended consequences for financing conditions and financial stability.
Blog Post
Clearing houses in the UK operate an extremely sizable market in euro-denominated transactions. However, even though the numbers are big in value terms, in substance, clearing houses shifting to the continent will not make a big difference to the UK economy and employment. Arguably, there is a case for the ECB to claim that euro area business of clearing houses be relocated.
Blog Post
The Swiss’ national banks’ decision to end the peg to the Euro in January 2015 put again spotlights on the foreign currency loan overhang in CEE. This blog describes the extent of the foreign exchange borrowing and the respective macro-prudential provisions adopted in recent years.
