Beware rolling back fiscal and monetary stimulus, New giant enters green bond market, and more
Latest opinion and analysis from OMFIF around the world
16-20 August 2021, Vol.12 Ed.33
Beware rolling back fiscal and monetary stimulus: Advanced economy governments have performed a high-wire fiscal act, heavily supported by central banks’ ultra-loose monetary policies, to fight the Covid-related downturn. Emerging market economies will face considerable risks when tightening starts. Repercussions from premature tightening would be self-harming, as spill overs in EM economies would reverberate back to advanced countries – and the whole world would be worse off, writes Urjit Patel.
New giant enters green bond market: Although the European Commission has long been able to issue bonds, it has been a rare guest on the capital market. Now, it has entered the green bond market in the hope of funding a sustainable recovery from Covid-19. This must be seen as an opportunity to build a more sustainable future, writes Frank Scheidig.
Developments in digital payments: David Creer, global DLT and crypto lead at the GFT Group, and Peter Clifford, director of central bank digital currencies and payments at Digital Asset, join Philip Middleton, chair of OMFIF’s DMI, to discuss developments in digital payments. They delve into the efficiency of cross-border payments, decentralised networks and privacy issues.
Fiscal policies to tackle climate catastrophe in Asia Pacific: Masahiro Nozaki presents the IMF’s ‘Fiscal Policies to Address Climate Change in Asia and the Pacific’ study. A panel discussion follows, looking at how Asia Pacific can accelerate mitigation efforts and transition to a green economy, while minimising economic and social impact on the population.
Renminbi internationalisation getting back on track: Renminbi internationalisation is being discussed both in China and the rest of the world. Domestically, opinions are divided between hotheads, who want to see the renminbi replace the dollar as soon as possible, and realists, whose views are similar to Japan’s in the 1980s, writes Herbert Poenisch.