Latest opinion and analysis from OMFIF around the world
14-18 March 2022, Vol.13 Ed.11
Most-read Commentary
How the ECB can improve its communications: As the European Central Bank approaches its first significant monetary tightening since 2011, President Christine Lagarde faces a threat of cacophony among the voices making up the 25-member governing council. This endangers the cohesion and the credibility of the central bank as it confronts the economic and political repercussions of the war in Ukraine, including higher and persistent inflation, writes Moritz Kraemer.
How high will the Fed have to go?: On 16 March the FOMC stuck to its policy of reversing stimulus only slowly in the face of inflation. It raised the target federal funds rate and decided to keep its holdings of bonds at their current high levels. While the interest rate decision got most of the attention, the decision to maintain bonds at their current levels may be as important, writes Tamim Bayoumi. Read more.
Next steps for Project Hamilton and CBDC payments: Robert Bench, assistant vice-president at the Federal Reserve Bank of Boston, and Aman Cheema, global head of global real-time payments at FIS, join Patricia Haas Cleveland, US president of OMFIF, to discuss the key findings of the Boston Fed’s recent report on Project Hamilton and look ahead to the next steps for a viable CBDC. Listen.
Asset and risk management seminar: OMFIF’s annual asset and risk management seminar brings together senior representatives from central banks, economic experts and asset managers to discuss macroeconomic developments and the post-pandemic outlook for public sector investment management. Participants also assess the global recovery, efficacy of central bank monetary policies and fiscal stimulus packages. Watch.
Solving the euro area’s problem will take years: Before Covid-19 and the invasion of Ukraine, the worst of the euro area’s macro strains looked to be behind it, as the lagged effects of ultra-low bond yields flowed through to confidence and higher loan demand. While helpful, monetary loosening should never have been expected to solve the underlying problem – a monetary union devoid of economic union. Resolving this will take years, writes Neil Williams. Read more.
