Blog

Central Bank Market Neutrality is a Myth

and | 16 October 2020
Blog, Monetary | Tags: Asset Purchases, Central Banks, Climate Change, Foreign Exchange Reserves, Market Neutrality
Christine Lagarde, the President of the European Central Bank (ECB), this week raised the critical question whether, in view of market failures, market neutrality should remain the guiding principle driving central banks’ policy portfolio management. Her spotlight on market neutrality underscores growing and overdue scrutiny ... continue reading

Central Banks Must Heed Their Own Warnings on Climate Risks

| 13 October 2020
Blog, Monetary | Tags: Asset Purchases, Central Banks, Climate Risk, Collateral Frameworks
The Central Banks and Supervisors Network for Greening the Financial System (NGFS), a group of more than 70 central banks and financial supervisors across the globe, has repeatedly highlighted that climate risks are financial risks. Its members have also continuously put a spotlight on the ... continue reading

Worthy Goals, Flawed Policies – Why Increasing Tax Deductions for Parents Can be Wrong

| 4 September 2020
Blog, Fiscal | Tags: Inequality, Tax Expenditures
Tax expenditures (TEs) – also called tax benefits, tax reliefs, or simply tax subsidies – are used widely to pursue different policy objectives, e.g. boosting innovation and R&D, attracting investment and reducing poverty. Governments worldwide forego significant amounts of revenues through the implementation of these ... continue reading

COVID-19 and Seizing the Opportunity for Reforming Tax Expenditures in Africa

and | 27 July 2020
Blog, Fiscal | Tags: Covid-19, Domestic Revenue Mobilization, Tax Expenditures
The  resources needed for financing the Sustainable Development Goals (SDGs) are estimated at USD 2.5 – 3 trillion per year. According to the IMF, low-income countries (LIC) will need, on average, additional resources amounting to 15.4% of GDP to finance the SDGs in education, health, ... continue reading

The Transition to a Sustainable Post-COVID Economy Requires an Urgent Shift in Central Bank Risk Management

| 10 July 2020
Blog, Monetary | Tags: Central Banks, Climate Risk, Covid-19, Financial Regulation, Monetary Policy Operations, Precautionary principle
The COVID-19 crisis is profoundly and durably transforming our economies. So will the transition to a low-carbon economy, which is necessary to contain the environmental crisis ahead of us. Shifting our economic system from its current state to a sustainable post-COVID version entails large and ... continue reading