Articles by author
Re-imagining safe assets
In this Spotlight article, Avinash Persaud asks why, in response to the pandemic, the bulk of the fiscal and monetary stimulus was in countries that issue international safe assets. He suggests two approaches that would enable others to issue international safe assets and a new type of safe asset that could help mend our planet.
1 FEB 2022Lessons from the SVB collapse for banking regulation
In this article Avinash Persaud considers the more immediate and the lasting lessons from the recent bank crisis.
1 JUN 2023The bubbling emerging market crisis and what the world should do about it
A silent wave of financial stress is running through world financial markets. The proximate cause of the crisis is the combination of COVID-debt and a jump in the US dollar. Fighting the dollar’s appreciation with higher interest rates on debt will push the world into crisis and recession. To forestall the worst, the IMF Board must immediately: – increase access to its unconditional rapid financing facilities; – increase access to its unconditional rapid financing facilities; – temporarily suspend interest rate surcharges; – fulfil their commitment to rechannel to developing countries at least $100bn of its recently issued special drawing rights (SDRs) that give holders automatic access to liquidity; and – agree to a new $650bn SDR allocation. Delay will spread social and economic collapse that will reverberate worldwide. Let us not be quick to save banks but slow to save countries.
1 DEC 2022
