Ousmene Mandeng conference images

Economics Commentary offers analyses and opinions on international monetary affairs and emerging markets capital markets developments. The content is primarily concerned with changes in the international monetary system and its impact on economic policies and international capital markets and draws extensively on participations in key international economic policy fora. Economics Commentary aims to support the public debate and markets' understanding of major international monetary and emerging capital markets developments.


New challenges for global economic integration

Conference——9th Annual Conference organised by the Central Reserve Bank of Peru and Reinventing Bretton Woods Committee, Cusco, 24-25 July

29 July 2017

The benefits of global economic integration are seen increasingly sceptically or so it appears. The conference with the participation of leading policy makers from Latin America and other countries, representatives from international organisations, academia and the private sector debated the future of globalisation. While there was recognition that globalisation may produce some adverse distributive outcomes, in Latin America support for openness seemed overwhelming. Herein is a summing-up of the discussions at the conference. [...]

Cryptocurrencies——Forward to the past

27 July 2017

Record valuations of Bitcoin suggest that cryptocurrencies are coming of age. The proliferation of cryptocurrencies or digital currencies seems to advertise a new era of money. In fact, their underlying ideas are rather old. Cryptocurrencies, herein referred to only as not having legal tender status, aim for a world—abstracting from their profound technological impact on recording, anonymising and administering monetary transactions—of rigid monetary rules and private monies and without central banks. There were many good reasons of why monetary systems moved forward. While this may not diminish the appeal of cryptocurrencies, to represent a monetary innovation they must look far beyond the traditional functions of money.[...]

Globalisation under threat

8 July 2017

The G20 summit in Hamburg on 7-8 July is to celebrate globalisation. Yet there is mounting concern that globalisation has peaked. Reinventing Bretton Woods Committee and Hamburg Institute of International Economics organised a conference ahead of the G20 with academics, private sector participants and G20 and other officials to reflect on the threat from de-globalisation. Herein is a summary of the views expressed during the conference [...]

European Monetary Fund (update): Beware of Germany

5 June 2017

The E.U. Commission announced on 31 May rather ambitious ideas about possible ways for deepening Europe's Economic and Monetary Union. Those reaffirm discussions about a European Monetary Fund (EMF) to help fighting Euro Area crises. Germany in particular seems eager most likely by transforming the existing European Stability Mechanism (ESM). The recent impasse on Greece's economic programme illustrates the dysfunctionality of the Euro Area's economic crisis management and urgency for institutional reforms. It would critically complement the financial architecture of the Euro Area and strengthen the euro. However, key lessons need to be learnt for the design of an EMF; above all from the International Monetary Fund (IMF). To be effective, an EMF will have to be insulated from undue German influences. [...]

International portfolio investment holdings update

26 April 2017

International portfolio investments continue to show signs of globalisation fatigue. The latest IMF Coordinated International Portfolio Survey (CPIS) of non-official cross-border portfolio investment holdings with data through June 2016 reveal that total international portfolio investments have continued to decline in percent of world GDP. Investments in the Euro Area have suffered the most. Emerging markets have been zigzagging and remain below their peak. [...]

Special Drawing Right (SDR)

Collection of comments on the SDR