Inflation targeting – What it is, and has the 2% goal run its course? Inflation targeting has been used as a monetary policy tool by central banks since the late 1980s, but recent events have raised the question as to whether the sacrosanct 2% target should be raised. What would be the implications of
“Trustworthy” AI – Can regulation enhance trust in the AI that businesses and people are using? As part of its “Coordinated Plan on Artificial Intelligence,” the EU has proposed a regulation that sets out harmonized rules on artificial intelligence. This addresses “the risks and problems linked to AI, without unduly constraining or hindering technological
Ratings divergence complicates anti-greenwashing measures The risks associated with greenwashing – false/misleading marketing regarding the sustainability attributes of a product or service – are on the rise with signs that net-zero and other commitments made by some members of the financial sector may not be credible. But identification of greenwashing practices remains problematic as
The Ethereum “Merge” – What are the implications for the future of the crypto industry? While the failed crypto exchange FTX has heightened uncertainty over this asset class, another potentially seismic event for the industry took place recently when the Ethereum blockchain merged with another blockchain (Beacon Chain). “The Merge” saw Ethereum switch its
How to Identify and Manage Problem Loans With many economies bracing for downturn and a higher interest rate environment, a sharp spike in default rates is a likely prospect. What steps should banks and other lenders take to manage this? All lenders provide credit facilities in the belief that their customers will meet repayment
Understanding the Dynamics of Recession Around the world, many economies are either in recession or heading toward one as a result of the inflation crisis and the associated policy response from monetary authorities. But what exactly is a “recession,” what happens during it, how long does it last, and how does it end? The
IPO Activity Dwindles in 2022 For many companies, going public is a landmark moment that signals their current success and future ambition. An initial public offering (IPO), which is the most common way of getting a public listing, is an expensive and time-consuming process that also creates major ongoing costs and onerous compliance obligations
Sanctions Expose US Dollar Vulnerability but Dominance Set to Continue For the past century the US dollar has enjoyed unrivalled supremacy in global trade and finance. But the war in Ukraine and subsequent imposition of sanctions on Russia – the so-called “weaponization of finance” – has drawn attention to this dominance. It has
Cryptocurrency Risk Worries Multiply Investment is a perpetual search for superior returns relative to risk. At different points in time, various asset classes came into vogue. In the 1970s, gold was in favor. The 1990s saw emerging markets take on a new prominence. This century has seen the rise of alternatives. All of
New Inflationary Regime Takes Hold Around the world major economies are grappling with an extraordinary bout of inflation that has put to an end a disinflationary regime that lasted for 40 years. The euro area hit a record 8.1% rate in May. The UK’s consumer price index (CPI) rose by 9% in April
