Not all foreign exchange reserves are created alike
The motives for the accumulation and management of foreign exchange reserves are a key topic in international economics. This column highlights an aspect of the
New coins on the block: Digital currencies and the financial system
The crypto system is no longer a sideshow. Dollar stablecoins now put dollar claims into circulation well beyond the regulated US banking perimeter, and cryptoisation
How the tariff war shock affected the ‘safe asset’ privilege of US Treasuries
US Treasury securities serve as the global safe asset due to their extreme safety and liquidity. However, the tariff shock in April 2025 led to
How AI can help detect warning signs of financial market stress
Predicting financial market stress is a significant challenge, as traditional models often fail to capture complex and nonlinear dynamics. This column highlights two recent advances
Ripples presaging a financial tsunami
Loss of confidence in the US dollar’s reserve currency status could trigger a collapse of the US Treasury market and international financial fragmentation. This column
Tariffs and US dollar depreciations: Not so surprising after all
To many, the US dollar depreciation following the ‘Liberation Day’ tariff announcement on 2 April 2025 defied conventional wisdom. However, open-macro models predict that the
Partisan politics and global supply chains: How CEO political alignment shapes trade decisions
Against a backdrop of escalating geopolitical tensions and rapidly shifting global alliances, policymakers are advocating strategies such as ‘friendshoring’ to safeguard supply chain resilience. This
Miran, we’re not in Triffin land anymore
Stephen Miran, Chair of the US Council of Economic Advisers, claims that we live in ‘the world of Triffin’, meaning that foreign official accumulation of
