Lifting the curtain on the EU’s debt
The EU’s far-reaching response to a series of major shocks has turned it into a major borrower on international financial markets. Debt issued by the
Safe debt financing: International spillovers and the benefits of fiscal policy coordination
Safe government bonds enjoy a discount known as the convenience yield. When a government issues more debt, it erodes this discount for itself and for
Europe’s US holdings: Leverage lies in marginal demand
The question of whether Europe’s $12.6 trillion holdings of US assets be used as leverage if relations with Washington sour has become increasingly salient in
Central bank digital currency and monetary sovereignty
Calls for a digital euro increasingly invoke monetary sovereignty, often on the grounds that Europe must retain control over its payment systems. This column argues
The hidden cycle: How informality shapes fiscal policy and sovereign default
The informal sector tends to expand during economic downturns and contract in recoveries, and is also highly sensitive to fiscal policy. This column explores the
Violent conflict and cross-border lending
How states leverage sovereign debt to support their military endeavours has been examined thoroughly, but the relationship between private finance and armed conflict remains underexplored.
