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1. Securing macroeconomic and monetary stability with a Federal Reserve–backed digital currency

Author:
Julia Coronado and Simon Potter
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The US monetary system faces significant challenges from advances in technology and changes in the macroeconomy that, left unaddressed, will threaten the stability of the US economy and financial system. At the same time, low interest rates mean that central banks will not have the policy ammunition they had in the past during the next recession. The Federal Reserve needs new tools to meet its mandates of price stability and maximum employment. It also needs to preserve the safety and soundness of the financial system in a rapidly digitizing world. The authors propose a Fed-backed digital currency to solve both problems. Their proposal creates a regulated system of digital currency accounts for consumers managed by digital payment providers and fully backed by reserves at the Fed. The system would be limited in size, to preserve the functions and stability of the existing banking system. Fed backing would mean low capital requirements, which would in turn facilitate competition. Low fees and no minimum balance requirements in the new system would also help financial institutions reach the roughly 25 percent of the US population that is currently either unbanked or underbanked. Digital accounts for consumers could also provide a powerful new stabilization tool for both monetary and fiscal policies. For fiscal policy, it could facilitate new automatic stabilizers while also allowing the Fed to provide quantitative easing directly to consumers. This tool could be used in a timely manner with broad reach to all Americans.
Topic:
Economics, Government, Monetary Policy, Banks, and Macroeconomics
Political Geography:
North America and United States of America

2. The Causes, Effects, and Manifestations of the Money Laundering Problem in the Former Soviet Union

Author:
Yehuda Shaffer and Stefan D. Cassella
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
In the past few years, a number of European banks have been implicated in money laundering scandals in countries such as Cyprus, Malta, Latvia, and, most recently, Scandinavia. Although European and international voices are putting pressure to take further action by all including the banks against this, the issue continues to emerge in the continent. In this short article, we attempt to explain this trend and how might it be resolved.
Topic:
Crime, Economics, Finance, Business, Financial Crimes, Banks, and Currency
Political Geography:
Russia, Soviet Union, Latvia, Scandinavia, Cyprus, and Malta

3. Should Denmark and Sweden join the banking Union?

Author:
Dirk Schoenmaker and Svend E. Hougaard Jensen
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Though outside the euro area, Denmark and Sweden could benefit from joining the European Union’s banking union. It would provide protection in case of any need to resolve at national level a large bank with a Scandinavian footprint, and would mark a choice in favour of more cross-border banking. But joining the banking union would also involve some loss of decision-making power.
Topic:
Markets, European Union, Economy, and Banks
Political Geography:
Europe, Denmark, and Sweden

4. Quarterly Review of the Georgian Economy (III Quarter, 2019)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economy, Economic growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

5. State of Financial Cooperatives in Zambia: A viable option for increasing fi nancial inclusion?

Author:
ZIPAR
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
This policy brief presents the summary fi ndings of a study on Promoting Financial Cooperatives (FCs) in Zambia that was conducted between 2017 and 2018 with fi nancial support from the Rural Finance Expansion Program (RUFEP), Ministry of Commerce Trade and Industry (MCTI) and the Zambia Center for Accountancy Studies (ZCAS). The study used both qualitative and quantitative approaches which included a situational analysis of FCs in Zambia, a study tour to Kenya and a census of Financial Cooperatives (FCs) eight provinces. The main objective of the study was to contribute to the development of FCs in Zambia by generating information on their performance. The secondary objectives of the study were to: 1. Undertake a situational analysis to develop a clear understanding of the landscape for the FCs in Zambia in terms of the regulatory framework, support institutions and the nature and level at which the FCs operate. 2. Undertake a Census of cooperatives to understand the opportunities and constraining factors for the growth of the Cooperatives movement in Zambia. It was envisaged that the study would provide evidence about FCs that could be used in the revision of the Cooperatives Act currently underway, aid MCTI understand the nature of Cooperatives and devise strategies for monitoring FCs. The study also aimed at providing information about the state of FCs that can used by the apex body of FCs and stakeholders such as Bank of Zambia.
Topic:
Regulation, Banks, Economic Development, and Financial Cooperatives
Political Geography:
Africa and Zambia

6. From poverty reduction to global challenges, a new horizon for international development cooperation?

Author:
Philippe Andre Orliange
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
The adoption of the Sustainable Development Goals, The Paris Agreement on Climate Change and the Addis Ababa Action Agenda laid the foundations of a new system of international development cooperation in which middle income countries are playing an increasingly important role, National Development Banks are becoming key players although broadly consensual regulatory framework are still insufficient.
Topic:
Climate Change, Poverty, Finance, Sustainable Development Goals, International Development, and Banks
Political Geography:
Global Focus

7. Financial Inclusion and Savings in Indonesia

Author:
Rashesh Shrestha and Samuel Nursamsu
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper discusses the status of financial inclusion in Indonesia and examines the impact of financial inclusion – based on availability of bank branches on household outcomes – in Indonesia. Based on analysis of the World Bank’s Financial Inclusion Survey (FINDEX) data, Indonesia has made some progress on expanding financial inclusion. The share of individuals with bank accounts rose from less than 20% to just under 50% in 2017. Interestingly, while the gain between 2011 and 2014 was greater for individuals in the upper 60 percentile of income, the gains between 2014 and 2017 were more pro-poor. This progress was made possible due to concerted government efforts to expand financial inclusion. In our empirical analysis, we study how financial inclusion enables households with income gains into savings for assets and earnings. Using the Indonesian Family Life Survey data, we find that living in areas with high density of bank branches helps poor households accumulate savings. The marginal effect of financial inclusion on savings is highest amongst the households in the bottom quintile of per capita consumption distribution. Thus, access to formal financial institutions can lead to improvement in household welfare.
Topic:
Inequality, Finance, Banks, and Domestic Policy
Political Geography:
Indonesia, Asia-Pacific, and Indo-Pacific

8. Financial Inclusion, Active Bank Accounts and Poverty Reduction in India

Author:
Tony Cavoli, Ilke Onur, and Patricia Sourdin
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the World Bank’s Global Findex data, this research first shows that the efforts by the Indian Government and the Reserve Bank have been successful in providing access to formal banking services, especially in the rural areas of the country. Similarly, financial account ownership gap has been eliminated in terms of gender and income. Further analysis, using the Financial Inclusion Insights dataset, shows that financial inclusion has a positive and significant effect on reducing poverty in India. A closer look at the utilisation of the financial accounts shows that active usage of these accounts would lead to further reductions in poverty levels in India. Therefore, targeted programmes, such as offering financial education both in and outside schools, with the aim of improving financial literacy, could lead to further poverty reduction in India.
Topic:
Education, Poverty, Finance, and Banks
Political Geography:
India and Asia

9. Bank recapitalizations in Greece: From state-led bailouts to the ownership transfer of banks to foreign hands

Author:
Athanasios Kolliopoulos
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
A decade after the conclusion of the first economic adjustment programme in 2010 and despite three consecutive recapitalizations, Greek banks still suffer from the highest Non-Performing Loans ratio in the Eurozone, with credit expansion in the “real economy” remaining anemic. Furthermore, the overall impact on public debt from government financial support to Greek banks over the last decade was one of the largest among the Eurozone countries. What went wrong? What were the reasons that the domestic financial system ended up in this exceptionally sad state? Why did the recapitalization policy not have the desired outcome? Exploring these questions throughout the literature of responses to banking crises, this paper shows that recapitalization policy in Greece failed to exploit the advantages of the principal forms of bank rescues. In fact, the significant inertia prevailing among authorities and bankers throughout the recapitalizations brought about the ownership transfer of the Greek banking system to foreign hands (“dehellenization”) after the third recapitalization in late 2015. You may acces the full paper by Dr. Athanasios Kolliopoulos, Postdoctoral Researcher at the Athens University of Economics and Business, here.
Topic:
Financial Crisis, Banks, Recapitalizations, Bailout, and Banking Crisis
Political Geography:
Europe and Greece

10. The European Union: State of play and prospects

Author:
Janusz Lewandowski
Publication Date:
05-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
"Many brilliant prophecies have appeared for the future of the EU and our entire planet. I believe that Europe, in its own style, will draw pragmatic conclusions from the crisis, not revolutionary ones; conclusions that will allow us to continue enjoying a Europe without borders. Brussels will demonstrate its usefulness; it will react ably and flexibly. First of all, contrary to the deceitful statements of members of the Polish government, the EU warned of the threats already in 2021. Secondly, already in mid-March EU assistance programs were ready, i.e. earlier than the PiS government’s “shield” program. The conclusion from the crisis will be a strengthening of all the preventive mechanisms that allow us to recognize threats and react in time of need. Research programs will be more strongly directed toward diagnosing and treating infectious diseases. Europe will gain greater self-sufficiency in the area of medical equipment and drugs, and the EU – greater competencies in the area of the health service, thus far entrusted to the member states. The 2021-27 budget must be reconstructed, to supplement the priority of the Green Deal with economic stimulus programs. In this way structural funds, which have the greatest multiplier effect for investment and the labor market, may return to favor. So once again: an addition, as a conclusion from the crisis, and not a reinvention of the EU," writes Dr. Janusz Lewandowski, the author of the 162nd mBank-CASE seminar Proceeding.
Topic:
Demographics, Labor Issues, European Union, Economic growth, Banks, and Trade
Political Geography:
Europe