The Federal Reserve on Thursday, August 13 highlighted the research and experimentation undertaken to enhance its understanding of the opportunities and risks associated with central bank digital currencies. The initiatives complement a broad set of payments-related innovation projects currently underway within the Federal Reserve System. "Given the dollar's important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding central bank digital currencies," said Federal Reserve Board Governor Lael Brainard. "Like other...

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The European Commission has adopted today a package of proposals that aims to increase trade between the European Union and neighbouring countries in the Pan-Euro-Mediterranean (PEM) region, thereby contributing to the economic recovery following the coronavirus outbreak. Today's proposals will modernise the EU's preferential trade agreements with 20 PEM trading partners by making the relevant ‘rules of origin' in those agreements more flexible and business-friendly. These proposals amend the EU's bilateral agreements with the following countries: Iceland, Liechtenstein, Norway, Switzerland,...

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Blog post by EU High Representative Josep Borrell | Last Monday I opened the Summer University of the Universidad Internacional Menendez Palacio in Santander (Spain). We mostly discussed the consequences of the current crisis for Europe and the world. At this stage, the risk seems serious that it destabilises many developing countries and strengthens a trend towards authoritarian regimes. In this context, Europe has a key responsibility to defend effective multilateralism and help developing countries in need. "The actual crisis risks...

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Most widespread tightening of credit terms over three-month review period since SESFOD launched in 2013 Less-favourable price terms for non-financial corporations and less-favourable non-price terms for hedge funds Liquidity and trading deteriorated materially for all types of OTC derivatives, while initial margin requirements increased for almost all types Some insurance companies, hedge funds and investment funds faced strained liquidity situations linked to variation margins Survey respondents reported the most widespread tightening of credit terms and conditions over a three-month...

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ECB and other major central banks to reduce frequency of 7-day US dollar operations from three times per week to once per week, while 84-day operations continue to be offered weekly New frequency effective as of 1 September 2020, to remain in place for as long as appropriate to support smooth functioning of US dollar funding markets ECB and other major central banks standing ready to re-adjust provision of US dollar liquidity as warranted by market conditions In view of continuing...

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Today, the European Commission decided to register a European Citizens' Initiative (ECI) entitled ‘Right to Cure'. The organisers of the ECI call on the Union ‘to put public health before private profit make anti-pandemic vaccines and treatments a global public good, freely accessible to everyone'. The ECI lists the following objectives: Ensure that intellectual property rights, including patents, do not hamper the accessibility or availability of any future COVID-19 vaccine or treatment; Ensure that EU legislation on data and market...

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In the midst of the current COVID-19 pandemic, policymakers around the world are undertaking fiscal stimulus—a combination of spending increases and tax reductions—to support their economies. Even before the present crisis, the importance of fiscal policy has been increasing, with monetary policy constrained by near-zero interest rates. Our new staff research finds that age also matters when considering fiscal stimulus. Specifically, we find that fiscal policy isn’t as effective in boosting growth in economies with older populations, compared to economies with younger...

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