The UK’s financial services industry is a significant source of jobs and tax revenues for the country. The government is introducing reforms to boost the sector, but whether this will translate into economic growth is uncertain. Meanwhile, Brexit is harming the City’s global competitiveness. In the Chancellor’s recent ‘mini budget’ speech, he said that ‘a […]
Category: Banks & financial markets
New digital financial technologies have the potential to shake up banking. Fintech services offer potential benefits to consumers and have made inroads into online lending and payment services. But the sector remains small and does not yet pose an existential threat to banks. Over the past decade, new digital financial technologies – ‘fintech’ – have […]
Enthusiasm for ‘greening’ the financial system is welcome, but a central challenge remains: decision-makers lack some basic information. It’s not enough to know that climate change is a threat, markets need credible sources on how global warming translates into material risks. Climate change will affect every element of the global financial system. With Covid-19 pushing […]
The rising price of Bitcoin during the pandemic has renewed interest in private digital money. While it is unlikely that Bitcoin will replace existing currencies, the emergence of ‘cryptocurrencies’ and ‘stablecoins’ has prompted exploration of central bank digital currencies. Bitcoin is a decentralised virtual currency or ‘cryptocurrency’: in the words of its anonymous founder, ‘a […]
In September 1992, the UK was forced to withdraw from the exchange rate mechanism of the European Monetary System, as it was unable to keep the value of the pound above the limit specified by the agreement. There are lessons from three decades ago for today’s bout of high inflation. Central banks issue paper money. […]
In late 2022, the Chancellor announced a package of regulatory initiatives for the UK’s financial sector. How the so-called Edinburgh Reforms will affect consumer spending – and the country’s economic performance more broadly – are uncertain. But a ‘turbocharging’ of economic growth seems unlikely. For the first time since the global financial crisis of 2007-09, […]
The price of the cryptocurrency Bitcoin is determined by some combination of a small number of very large trades, the issuance of Tether, a so-called stablecoin, and organic supply and demand. Finding out what caused a particular price movement requires examination of all three factors. Bitcoin, a digital asset, was originally seen as a new […]
The prices of Bitcoin, Ethereum and other cryptocurrencies have been plummeting. While the trigger was changing economic conditions, the root cause of the crash lies in the nature of crypto investments: they lack independent value and require a continuous stream of new investors to sustain prices. Cryptocurrencies are digital assets that purport to be a […]
After the initially negative effects of the pandemic on developing countries’ financial markets, their economies have stabilised. But it has been difficult for governments to implement policies that both protect lives and insulate citizens from severe disruptions to economic activity. When the Government of India first announced a countrywide lockdown in March 2020, thousands of […]
Many people believe that recovery from the pandemic should be focused on long-term environmental sustainability as much as economic and social concerns. Green finance can contribute by promoting sustainable sectors and by diverting funds away from heavy polluters. Over the past decade, it has become clear that the financial sector can play a pivotal role […]