Bank performance under negative interest rates

Jose A. Lopez, Andrew Rose, Mark Spiegel. Many countries have now adopted negative nominal interest rates. The column uses data on 5,000 banks affected by this policy to conclude that, while their net income has not fallen, strategies to increase   […]

Why central banks should not be inflation nutters

Davide Debortoli, Jinill Kim, Jesper Lindé, Ricardo Nunes. Previous studies have suggested that for central banks, a focus on inflation stabilisation is enough to stabilise other macroeconomic variables, and that focusing on economic activity can even be harmful. Using a   […]

Credit supply and housing speculation

Atif Mian, Amir Sufi. Charles P. Kindleberger wrote that “asset price bubbles depend on the growth in credit”. This column looks at the acceleration of the US private label mortgage securitisation market in the US in the late summer of   […]

The blockchain catalyst for change

Michael Casey, Jonah Crane, Gary Gensler, Simon Johnson, Neha Narula. The idea of a new software system that powers a consensus-driven form of shared record keeping has already had a profound effect, encouraging rapid and substantial investment in what is now   […]

Banking the masses: 2018 edition

Stephen Cecchetti, Kim Schoenholtz. Over the past six years, more than 1.2 billion adults have gained at least basic financial access through a financial institution or their mobile phone. This column discusses the benefits of financial inclusion, key trends regarding   […]

Digitalisation of money and the future of monetary policy

Peter Bofinger The digitalisation of money has the potential to change traditional structures of the financial system. This column discusses four areas in which it may have an impact, and argues that while digitalisation will not erode the importance of   […]

The changing fortunes of central banking

Philipp Hartmann, Haizhou Huang, Dirk Schoenmaker. The financial crisis forced central banks to explore novel policy options and to take on new responsibilities. This column gathers the views of leading academics and policymakers on what the expanded range of central   […]

Cryptocurrencies’ challenge to central banks

Antonio Fatás, Beatrice Weder di Mauro. Central banks are alert to the challenge of cryptocurrencies, and are contemplating reactions ranging from prohibiting private issuance to embracing such currencies. This column argues that the risks of introducing a central bank digital   […]

Making (some) sense of cryptocurrencies: When payments systems redefine money

Antonio Fatás, Beatrice Weder di Mauro. Economists have been dismissive of cryptocurrencies, but fintech entrepreneurs and enthusiasts continue to see their disruptive potential. This column considers the theoretical and practical arguments on both sides of the debate. Traditional currencies are   […]

The limits of central bank cooperation: Evidence from the Gold Pool (1961-1968)

Michael Bordo, Eric Monnet, Alain Naef Central bank cooperation has once again become a central issue amid the Global Crisis and the persistence of global imbalances, but there are few examples of successful cooperation schemes that survived the test of   […]