Category: FINANCIAL STABILITY

Debt Relief for a Green and Inclusive Recovery: Guaranteeing Sustainable Development

A debt crisis is emerging in the Global South at the precise moment when substantial investment is needed to meet shared climate and development goals. Yet, the G20 Common Framework has been unable to engage all creditor classes or link debt relief to climate and development. How can emerging market and developing economies (EMDEs) find […]

Voice at the Point of Sovereign Default

Much has been written about the questionable legitimacy of extending credit to states where it is likely that the funds will benefit the corrupt leader, or where the terms of the debt are highly inequitable. Less literature focuses on a different moment in the debt cycle: the point of default and the loss of voice […]

The Minsky-Kindleberger Connection and the Making of Manias, Panics, and Crashes

While a connection between economists Charles P. Kindleberger and Hyman Minsky is clear, the full extent of their intellectual relationship was unclear. By his own account, Kindleberger’s attention was only first brought to Minsky by Martin Meyer in 1976 as he was looking to build on his renowned book, World in Depression, 1929-1939. Kindleberger and […]

Trading Away Budget Space? How Trade Liberalization is Crunching Developing Country Budgets

By Devika Dutt and Kevin P. Gallagher The long-standing gridlock in trade negotiations in the World Trade Organization (WTO) has shifted the focus of trade negotiations to bilateral and plurilateral trade and investment agreements. Since the inception of the WTO in 1995, over 2,000 regional and bilateral trade and investment treaties have been negotiated and […]

Chart of the Week: How Climate Transition Spillover Risks Could Affect Barbados’s GDP

By Amanda Brown Barbados Prime Minister Mia Mottley spoke at the opening of the 27th United Nations Climate Conference (COP27), calling on powerful countries and institutions to commit to supporting climate vulnerable countries. From unlocking private sector finance to addressing loss and damage, Prime Minister Mottley highlighted the need to acknowledge and take action on the widespread impacts […]

London as a Financial Center Since Brexit: Evidence from the 2022 BIS Triennial Survey

When the euro arrived in 1999, London’s established dollar business conferred an advantage in intermediating the new number two global currency. The dollar business dominates London’s international financial business, as it has since the 1960s, but London’s share in the global euro business tended to exceed its global dollar share. The Brexit vote in 2016 […]

How South Korea’s National Pension Service Can Help Manage Financial Crisis

By Yaechan Lee Financial globalization under the dollar-based structure of the international monetary system is increasingly demanding more proactive policy actions from central banks to prepare against potential capital outflow as investors make the dash for the dollar during financial crises. During the COVID-19 crisis, research finds that even the central banks of developing economies […]