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If the US Federal Reserve raises its policy interest rate by as much as is necessary to rein in inflation, it will most likely further depress the market value of the long-duration securities parked on many banks' balance sheets. So be it
23 Mar 2023
Although Silicon Valley Bank was not deemed to be systemically important, its insolvency forced the US Federal Reserve to head off systemic contagion and exposed the inadequacy of the FDIC’s partial deposit insurance regime. The financial stability framework adopted after the 2008 crisis obviously needs another overhaul
21 Mar 2023
Rather than developing a robust understanding of the errors that led to the 2008 global financial crisis, politicians and the public demanded that supervisory authorities simply double down on regulation. So, that is what they did, and we are now seeing the results with the sudden collapse of Silicon Valley Bank
21 Mar 2023
In 2018, US lawmakers loosened banking regulations on the spurious grounds that smaller banks do not pose systemic risks to the stability of the financial system. Unfortunately, everyone will have to relearn the hard-won lessons of past banking crises
19 Mar 2023
If Ajay Banga is confirmed as World Bank president – as is likely – he will have to find ways to meet the demands of a global south that is eager for change. Failure to do so would undermine the bank’s long-term viability; and jeopardize the West’s future ability to exercise its convening power
16 Mar 2023
Digital platform companies could deploy the latest wave of artificial intelligence much more responsibly than they have so far, and two current court cases serve as warnings to those pursuing socially destructive business models. But we also need concerted public-policy action to fix the industry
16 Mar 2023
Although Silicon Valley Bank itself was not systemically important to the US financial system, it could signal more widespread problems that are only just coming into view. Many other banks also have large portfolios of long-dated securities and would incur heavy losses if sold before maturity
15 Mar 2023
The collapse of Silicon Valley Bank is emblematic of deep failures in the conduct of both regulatory and monetary policy. Will those who helped create this mess play a constructive role in minimizing the damage, and will all of us – bankers, investors, policymakers and the public – finally learn the right lessons?
14 Mar 2023
China was supposed to be the main beneficiary of a shift away from the dollar by countries fearing its "weaponization" by US authorities. So why isn't diversification toward the renminbi visible in data on foreign reserves and international payments?
14 Mar 2023
Despite the rising share of electric vehicle sales in China and elsewhere, it would be a mistake to leave matters to the market. Without more ambitious policy changes, the transition to emissions-free transportation will still be too slow to keep climate change in check
12 Mar 2023
For decades, tech platforms were left mostly free to do as they wished, and the harm caused by this approach has become obvious. Fortunately, the European Union has been pushing back on behalf of democratic and humanistic values, and it is now finalizing its biggest legislative and regulatory contribution yet
12 Mar 2023
Despite signs that inflation in most major economies has peaked and is trending back down, recent data releases have renewed fears that central banks will have to tighten monetary policy still further. In the face of maddeningly mixed signals, much will depend on a few key factors
10 Mar 2023
To ensure that we do not squander the gains of the last three decades of globalization, let alone undermine our ability to confront the challenges of the future, we must find ways to uphold some level of economic integration and effective international cooperation. But overcoming the forces of fragmentation will not be easy
10 Mar 2023
The reversal of decades of economic integration will leave the global economy with higher inflation and reduced growth potential. In this new era, governments, companies, and long-term investors will need to incorporate more sophisticated geopolitical and sociopolitical analyses into their strategies
9 Mar 2023
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