Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime
Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.
New working paper adds details about offshore wealth holdings, though significant info gaps are still left to be filled.
In a new 70-page report the BIS has acknowledged that unconventional quantitative cbank operations may have encouraged volatility in repo markets. They advise cbanks to engage in more securities lending operations to ease the problem.
How a high-profile corruption investigation fell apart; Fed officials still holding private meetings; Brexit and Britain’s prohibition; cows now acceptable as collateral in Zimbabwe; area man told his “genius” didn’t entitle him to a larger share of divorce pie; other stuff.
A couple of weeks ago we chatted to Michael Gastauer about his fintech startup WB21, a “digital bank” that has claimed one million customers and a $2.2bn valuation after less than a year in operation. It’s a remarkable trajectory for a company with a relatively unknown management team, no outside investors and what appear to be thousands of fake Twitter followers. WB21 has recently won mainstream attention by announcing a move from London to Berlin following the UK’s vote to leave the European Union. The WSJ said it was “one of the first startups” to quit the UK for Germany as a result of Brexit and the city of Berlin has welcomed WB21 and Gastauer with open arms.
- Jim Millstein discusses the financialisation of America
- Alphachat is on hiatus this week
- Benn Steil explains the Marshall Plan
- Marcel Fratzscher on the dark side of the German economy — now with transcript!!
- Marcel Fratzscher explores the dark side of the German economy
- Emi Nakamura on calculating inflation
- Stephanie Kelton explains how the government budget affects the economy and the mechanics of student debt forgiveness
- Jonathan Knee explains 25 years of Wall Street’s evolution
- Marcus Noland explains the North Korean economy
- Brad Setser explains how corporate tax policy affects the balance of payments
- Michele Wucker explains “Gray Rhinos”
- Listen - The "gray rhino" theory
- James Heckman tells us why IQ is overrated
- Mihir Desai explains the wisdom of finance — Now with transcript!
- Mihir Desai explains the Wisdom of Finance
- Can we avoid another financial crisis?
- Hirschmania, the final chapter
- The life and speeches of Sadie Alexander
- Kim Rueben on the fiscal impact of immigration
- A sit down with Adair Turner
Ryan Avent is the Free Exchange columnist at the The Economist and the author of The Wealth of Humans, a new book about the challenges and opportunities presented by a world of labour abundance. (Mostly the challenges.)