The low-carbon transition requires substantial financial mobilisation, yet it is unclear whether banks’ public climate commitments represent real change or simply greenwashing. This column uses unique survey data from 335 banks across 33 emerging markets to examine their internal green practices and lending approaches. The authors find that climate-committed banks score substantially higher on green […]
Economic growth in Europe continues to lag behind that of the US, largely due to smaller productivity gains. This column uses a general equilibrium model to show that a more integrated capital market in Europe could strengthen investment by reducing the cost of capital (price effect) and encouraging the entry of investors more inclined to […]
Rising interest rates expose the interaction between hidden losses on long-duration assets and flighty uninsured deposits. This column uses confidential data for 139 euro area banks to analyse this mechanism. It estimates that unrealised losses on loans and bonds held at amortised cost averaged about 30% by September 2023, and were largest for smaller retail […]
The introduction of crypto technology and tokenisation is spurring changes in the financial system. Meanwhile, the Trump administration is taking steps to integrate crypto into traditional finance, most notably the GENIUS Act’s establishment of a regulatory regime for payment stablecoins. This column explores the US’ policy goals concerning digital assets and argues that tokenisation – […]
Internal balance-of-payment crises should be taken as a strong signal of weakness and a wake-up call to reform euro area structures The single currency was expected to make the balance of payments irrelevant between the euro-area member states. This benign view has been challenged by recent developments, especially as imbalances between euro-area central banks have […]
In the context of financing Ukraine’s wartime economy, Western governments have paid little attention to how Ukrainians are funding the war themselves. This column analyses giving to Ukraine’s largest non-governmental provider of lethal aid, Come Back Alive. Using high-frequency daily donation data, it finds that civilian fatalities and frontline media reports generate immediate and significant […]
Escalating geopolitical tensions, trade wars, and volatile policy shifts are reshaping the rules of global commerce and finance and bringing the dominance of the US dollar into question. This column argues that Europe has a historic opportunity to elevate the euro into a trusted global anchor of stability and thus rebalance a global monetary order […]
Global climate and biodiversity outcomes will largely be determined in emerging and developing economies (EMDEs). We propose a four-pillar strategy to support climate and nature preservation in line with the economic interests of both developing and advanced countries. This would move beyond voluntary pledges to embed climate and nature objectives into the structures of trade, […]
Population ageing makes it harder for governments to finance programmes like public pensions and long-term care. But policy responses, such as tightening programme eligibility and benefit levels or raising taxes on current workers, often prove unpopular. This column presents findings from the latest wave of the OECD’s Risks that Matter survey, which takes stock of […]
A confluence of negative forces – some the result of self-inflicted wounds and rising uncertainty about US policies and others relating to global developments and geopolitics – is encroaching on the ability of the US to continue its current funding model, bringing into question the role of the dollar as the world’s reserve currency. This […]
