Feb 12, 2021The Case for Climate Objectives in Central Banks’ Targeted Refinancing OperationsBy: Chiara Colesanti Senni Central banks are making increasing use of targeted refinancing operations to pursue their mandates. However, so far none of them, with a few exceptions in developing economies, has aligned its targeting with the objective of a transition to a low-carbon economy. This must change. Refinancing operations…Central Bank5 min readCentral Bank5 min read
Jan 8, 2021Avoiding a Household Debt Crisis with a Targeted Policy ResponseBy: Gudrun Johnsen The economic effect of the Covid-19 pandemic varies highly across industrial sectors, education levels and income groups, adding further to inequality across the globe. This calls for highly targeted policy responses for the sake of fiscal prudence and to avoid further economic and financial hardship for those…Income Tax6 min readIncome Tax6 min read
Nov 24, 2020COVID-19 and Inequality: The Urgent Need for Tax Expenditure ReformBy: Rita de la Feria and Agustin Redonda This blog was originally published by Austaxpolicy (here). The economic impact of COVID-19 is both unprecedented and far-reaching. There is now little doubt that the pandemic will disproportionally hit the worse-off, hence exacerbating inequality. It is also clear that the pandemic is…Inequality5 min readInequality5 min read
Nov 23, 2020Central Banks Must Upgrade Their Risk ManagementBy: Pierre Monnin An adapted version of this article was originally published (in French) by Le Monde here. The COVID-19 crisis is a stark reminder of how sharply asset values can shift. Amid a crashing demand for oil and gas, giant energy companies like BP, Chevron and Shell massively wrote…Central Bank4 min readCentral Bank4 min read
Oct 16, 2020Central Bank Market Neutrality is a MythBy: Chiara Colesanti Senni and Pierre Monnin 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. …Asset Purchases8 min readAsset Purchases8 min read
Oct 13, 2020Central Banks Must Heed Their Own Warnings on Climate RisksBy: Alexander Barkawi 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 fact that…Asset Purchases3 min readAsset Purchases3 min read
Sep 4, 2020Worthy Goals, Flawed Policies — Why Increasing Tax Deductions for Parents Can be WrongBy Agustin Redonda 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 provisions. In…Inequality4 min readInequality4 min read
Jul 27, 2020COVID-19 and Seizing the Opportunity for Reforming Tax Expenditures in AfricaBy Agustin Redonda and Sanjeev Gupta The resources needed for financing the Sustainable Development Goals (SDGs) are estimated at US$ 2.5 to 3 trillion per year. According to the IMF, low-income countries (LICs) will need, on average, additional resources amounting to 15.4 percent of GDP to finance the SDGs in…Fiscal Policy7 min readFiscal Policy7 min read
Jul 10, 2020The Transition to a Sustainable Post-COVID Economy Requires an Urgent Shift in Central Bank Risk ManagementBy: Pierre Monnin 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. …Central Bank5 min readCentral Bank5 min read
Jul 3, 2020Supporting Households with Tax Expenditures in Times of COVID-19By: Agustin Redonda The economic shock triggered by the current pandemic is unprecedented. The number of victims of COVID-19 has already hit half a million and continues to rise. At the same time, the impact on economic output is massive. According to recent OECD estimates, global economic activity is expected…Covid-196 min readCovid-196 min read
