Time for central banks to stop dithering over climate, New round in ECB Kriegsspiel over bond-buying, and more
THE WEEKEND REVIEW – OMFIF
Latest opinion and analysis from OMFIF around the world
6-10 September 2021, Vol.12 Ed.36
Time for central banks to stop dithering over climate: Economic activity, of practically any and every kind, is strongly integrated with greenhouse gas emissions. But decades after climate change became important in public discourse, climate considerations seem to be ignored in monetary policy ‘reaction functions’ of central banks. Ignoring climate risks will complicate macroeconomic management, much like overlooking financial risks led to the 2008 financial crisis, writes Urjit Patel. Read more.
New round in ECB Kriegsspiel over bond-buying: The ECB governing council faces an important test of cohesion over scaling back government bond-buying under the PEPP. The 9 September meeting of the council heralds a fresh stage in a psychological battle between the minority favouring a tighter policy and the ECB board, writes David Marsh.
Innovation and evolution in payments and the role of central banks: The payments landscape is changing rapidly, driven by new technology, players and payment instruments. In a recent OMFIF Digital Monetary Institute roundtable, participants explored key questions around the role of central banks and the private sector in the evolution of payments.
Emerging market capital flows after Covid-19: With much uncertainty remaining and inflation well above the Federal Reserve’s target rate, speculation of Fed tapering and market tantrums are gaining momentum. OMFIF convene a panel to look at capital flows in emerging markets, the likelihood of capital flows reverting and asset and currency markets in the developing world.
DACH-focused funds primed to invest in decentralised finance: MINDSMITH and others surveyed experts and representatives of investment funds present in Germany, Austria and Switzerland (DACH) as Germany’s fund location act came into force. This will change the market for DACH-focused funds ready to invest in digital assets, writes Vsevolod Michalevsky.