Project Syndicate - 30 Aug 2017
The two academics / policy-makers argue that digital currencies (over which policymakers and regulators have little control) could further destabilize an already-tenuous leverage- and liquidity-based system. In their opinion, the danger of crypto-currencies extends beyond facilitation of illegal activities. Unlike conventional currencies, they also have no corresponding liability, meaning that there is no institution like a central bank with a vested interest in sustaining their value (reads in 5-7 min).
Published in Weekly selection 2 September 2017
Project Syndicate - 10 Jul 2017
At a time when central banks are winding down unconventional monetary policies, Roubini argues that they’ll have to reintroduce them if another recession or financial crisis occurs. The reason? Even if they can get the equilibrium rate back to 3% before the next recession hits, they still won’t have enough room to maneuver effectively. Interest-rate cuts will run into the zero lower bound before they can have a meaningful impact on the economy, leaving central banks with just four options (reads in 5-7 min).
Published in Weekly selection 14 July 2017
The Atlantic - 31 May 2017
The market consensus that the USD is in a secular bull run is so strong that it’s worth paying attention to what might prove it wrong. The think-tanker explains why, for the first time in a generation, it is possible to imagine a concerted attack on the Fed. In the past, attempts to meddle with it for political gain caused investors to fear future inflation, resulting in higher long-term interest rates, and in turn dampening economic growth (reads in 6-9 min).
Published in Weekly selection 19 May 2017