IMF/World Bank spring meetings advance co-operation, Reducing reserves and central bank balance sheets
Monday 19 April 2021 – Vol.12 Ed.16.1
Commentary: IMF/World Bank spring meetings advance co-operation
By Mark Sobel in Washington
The 2021 spring meetings hosted by the World Bank and the International Monetary Fund produced modestly positive outcomes. Treasury Secretary Janet Yellen and President Joe Biden’s administration underscored that the US is once more committed to advancing a co-operative international economic agenda. But the meetings also highlighted that many emerging markets and low-income countries may fall behind.
Read the full commentary on the website.
Commentary: Reducing reserves and central bank balance sheets
By Chris Papadopoullos in London
Central banks’ large holdings of government debt pose a threat to their independence, but it may be possible to shrink their balance sheets by replacing reserves with short-term government bonds. Federal Reserve economist David Andolfatto tells OMFIF about proposals for a standing repo facility, which could reduce the demand for reserves by banks in periods of market calm.
Read the full commentary on the website.
