Calls for a digital euro increasingly invoke monetary sovereignty. Lucrezia Reichlin argues that an effective defence of monetary sovereignty will continue to depend on regulation, fiscal capacity, and the ECB’s willingness to absorb risk when it matters
Read more
Andrew Bailey emphasises the need for robust international cooperation, supported by multilateral institutions, and why they need to be supported by an international rules-based system, setting out some of the conditions that help make this system work and what challenges they might face
Read more
EU member states may now exceed deficit limits if the borrowing finances defence. Paolo Surico proposes exempting innovation-related expenditure, rather than procurement, to raise long-run growth while maintaining fiscal responsibility and strategic autonomy
Read more
AI offers substantial benefits to society. Stephen Cecchetti, Robin Lumsdaine, Tuomas Peltonen and Antonio Sánchez Serrano discuss significant concerns regarding risks to the financial system and propose a mix of competition and consumer protection policies address these vulnerabilities
Read more
Each financial crisis brings more financial supervision, more models and larger buffers – but still fragility persists. Jon Danielsson argues that resilience should be the organising principle of supervision, rooted in the basic idea that has long governed finance itself: diversification
Read more
Governments globally have been ramping up initiatives to modernize their digital payment and financial systems. S Yash Kalash writes that nations must guard, strengthen digital rails to secure financial sovereignty
Read more
The global minimum tax represents the most ambitious international effort in decades to curb profit shifting to tax havens. Katarzyna Bilicka, Michael Devereux and Irem Güçeri argue that profit shifting doesn’t just affect tax revenues, it alters investment incentives, creating fundamental trade-offs that cannot be ignored
Read more
AI is transforming finance faster than the authorities can adapt. Jon Danielsson argues that while AI enhances the financial system’s efficiency, it also poses new, poorly understood risks, and ineffective supervision will mean a higher risk of financial crisis
Read more
The EU must speed up its integration and overhaul a model of export-led growth that has faltered amid mounting geopolitical turmoil. Christine Lagarde warns that the EU is increasingly vulnerable to shocks and is lagging behind in areas that will drive growth such as AI
Read more
Stablecoins have emerged as a major innovation with broad implications for payments and international finance. Richard Portes explores the risks such stablecoins pose to financial stability and measures that could contain these risks
Read more