“Nineteen thoughts on AI and Europe: Protectionism and industrial policy won’t fix our problems” by Pieter Garicano and Simon Grimm.
Highly relevant!
“The evolution of central banks’ lending operations: insights from the Markets Committee Compendium” by Hinako Kijima, Patrick McGuire, and Bertrand Rime.
“Central banks’ monetary policy operational frameworks have evolved in response to pandemic-era interventions, the resurgence of inflation and changes in market structure. The transition to smaller balance sheets, coupled with the growing footprint of non-bank financial institutions, is having a material impact on liquidity demand. Against this backdrop, central banks have begun recalibrating their lending operations, which comprise lending facilities and open market operations that extend funds to private sector borrowers on a collateralised basis. Drawing insights from the updated Markets Committee Compendium, this article examines the key design features and trade-offs related to the counterparty access policies, the collateral framework, pricing and disclosure practices of lending operations.”
How strong is the eurozone economy?
“Stocks surge as US-Iran deal ignites global rally: Investor sentiment also helped by SpaceX’s historic initial public offering” (Financial Times)
Kevin Warsh Wants the Fed to Stop Explaining Everything (Wall Street Journal)
“For decades, the central bank believed talking openly made its policy work better. Its new chairman believes the opposite—and his first meeting Wednesday is where he starts to prove it.”
How strong is the U.S. economy?
The closure of the Strait of Hormuz weighs on output and raises inflation. Will the AI boom last?