The OMFIF Podcast
Synopsis: China’s recovery, ECB coronavirus response, and how the pandemic will change the world economy

Synopsis: China’s recovery, ECB coronavirus response, and how the pandemic will change the world economy

March 27, 2020

In this episode of Synopsis, OMFIF Subeditor Julie Levy-Abegnoli looks back over the most recent articles published on the OMFIF website, on China's economic recovery, the European Central Bank's coronavirus response, and how the pandemic will reshape the world economy.

Articles and other items referenced:

  1. Resilient China can help lead global recoveryhttps://www.omfif.org/2020/03/resilient-china-can-help-lead-global-recovery/ 
  2. Time for 'whatever it takes' support for banks: https://www.omfif.org/2020/03/time-for-whatever-it-takes-support-for-banks/
  3. ECB 'only game in town' - again: https://www.omfif.org/2020/03/ecb-only-game-in-town-again/
  4. Coronavirus will remould world economy: https://www.omfif.org/2020/03/coronavirus-response-to-remould-the-world-economy/
  5. FedTalk: Communicating crisis response and the need for coordination: https://www.omfif.org/podcast/fedtalk-communicating-crisis-response-and-the-need-for-coordination/
  6. Global liquidity in the time of coronavirus: https://www.omfif.org/podcast/global-liquidity-in-the-time-of-coronavirus/
  7. Covid-19: Dispatches from London and Madrid: https://www.omfif.org/events/spanish-uk-responses-to-covid-19-financial-impact-and-implications-for-brexit/
  8. Identifying key risks in US credit markets: https://www.omfif.org/events/identifying-key-risks-in-us-credit-markets/

Music: Hey Mercy by Pierce Murphy is licensed under an Attribution License.

Global liquidity in the time of Coronavirus

Global liquidity in the time of Coronavirus

March 26, 2020

James Sweeney and Zoltan Pozsar, chief economist and managing director at Credit Suisse respectively, join Pierre Ortlieb, economist at OMFIF, to discuss the impact of the Covid-19 pandemic on global dollar liquidity and the industrial production cycle. They touch on central bank responses present and future, the state of funding and capital markets, and the influence of post-2008 regulation.

Further reading:

https://www.omfif.org/2020/03/beyond-swap-lines/

https://www.omfif.org/2020/03/fed-treasury-coordination-requires-structural-change/

Music: https://www.bensound.com/royalty-free-music

FedTalk: Communicating crisis response and the need for coordination

FedTalk: Communicating crisis response and the need for coordination

March 24, 2020

Thomas Costerg, senior economist at Pictet Wealth Management, joins Rein de Loor, programmes manager at OMFIF, to discuss the Federal Reserve's recent rate cuts in response to the coronavirus crisis. As central banks around the world  ease monetary policy, questions arise about global co-ordination and communication, as well as the role of fiscal policy in tackling the global upheaval.

Music: https://www.bensound.com/royalty-free-music

China and the economic impact of coronavirus Part II

China and the economic impact of coronavirus Part II

March 20, 2020

Andy Rothman, investment strategist at Matthews Asia, joins Mark Sobel, US chairman of OMFIF, to continue their conversation on China and the economic impact of coronavirus. They discuss whether China has overcome the worst of the outbreak and is getting back to 'normal', as well as how Chinese markets are responding. They also outline the fiscal and monetary measures Beijing has taken, and what lessons US and European policy-makers can draw from these.

Listen to part one of the podcast here:

https://www.omfif.org/podcast/the-impact-of-coronavirus-on-chinas-economy/?utm_source=chinacoronapodhttps://www.omfif.org/podcast/the-impact-of-coronavirus-on-chinas-economy/

Music: https://www.bensound.com/royalty-free-music

Synopsis: Coronavirus special

Synopsis: Coronavirus special

March 20, 2020

In this episode of Synopsis, OMFIF Subeditor Julie Levy-Abegnoli looks back over the most recent articles published on the OMFIF website, on monetary policy-makers' response to coronavirus.

Articles and other items referenced:

  1. Looking beyond unpredictability: https://www.omfif.org/2020/03/looking-beyond-unpredictability/
  2. Beyond swap lines: https://www.omfif.org/2020/03/beyond-swap-lines/
  3. Lagarde's 'whatever it takes moment': https://www.omfif.org/2020/03/lagardes-whatever-it-takes-moment/
  4. Time to pull the G20 fire bell: https://www.omfif.org/2020/03/time-to-pull-the-g20-fire-bell/
  5. Why the Fed must do more: https://www.omfif.org/2020/03/lombard-street-and-pandemics/
  6. Investing in digital infrastructure: https://www.omfif.org/podcast/investing-in-digital-infrastructure/
  7. Resiliency in Japan's monetary policy: https://www.omfif.org/podcast/resiliency-in-japans-monetary-policy/ 
  8. UK 'bridge' back to normality: https://www.omfif.org/podcast/uk-bridge-back-to-normality/
  9. Discussion with Claudio Borghi: https://www.omfif.org/events/economic-impact-of-the-italian-and-european-position-on-covid-19/
  10. Italy's economic position: https://www.omfif.org/events/responding-to-covid-19-italys-economic-position-and-recovery/
  11. Outlook for Italian industry: https://www.omfif.org/events/economic-impact-of-the-italian-and-european-position-on-covid-19-2/
  12. The US economy and challenges in regulation: https://www.omfif.org/events/the-us-economy-and-future-challenges-in-regulation/ 

Music: Hey Mercy by Pierce Murphy is licensed under an Attribution License.

Charlie Bean: Back to normality

Charlie Bean: Back to normality

March 19, 2020

Bean’s view: prevent permanent scarring

The task of economic policy confronting coronavirus disruption is to ‘provide a bridge’ between present dislocation and a new period of growth when normal activity may resume. That is the view of Charlie Bean, former deputy governor of the Bank of England, during a wide ranging OMFIF podcast comparing the pandemic and its economic effects with the 2008 financial crisis and the UK authorities’ fiscal and monetary response.

Bean – Sir Charlie since being knighted when he left the Bank in 2014 – praised the large-scale crisis measures of the Treasury and the Bank of England as showing necessary ‘joined up’ action. ‘The key thing is making sure that this hiatus doesn’t lead to permanent scarring of the UK economy and adverse effects on the supply side. What you want to avoid is perfectly viable businesses before the virus going into bankruptcy and lots of workers losing their jobs.’

Sir Charlie underlined parallels and differences with the last financial crisis, in which he was intensively involved during his time at the BoE. The last crisis centred on imbalances built up as a result of many financial institutions’ over-leveraged balance sheets, culminating in the collapse of Lehman Brothers in 2008. This time, with economic disruption caused by a medical emergency, the economy faced a shock to supply and demand which meant putting it into a ‘deep freeze’ for a while. ‘It’s a rather different task from what we faced with the great recession where one was trying to boost demand.’

Bean highlighted shortcomings in international coordination at the G20 or G7 level compared with the last upheavals.

He praised the Bank’s targeted monetary approach in this week’s announcement of unlimited purchases of commercial paper and last week’s resumption of cheap bank funding for passing on to hard-pressed companies. He did not rule out that the BoE could restart more ‘conventional’ quantitative easing through massive purchases of government bonds, but felt this was less appropriate than ‘unconventional’ QE directed at the commercial paper market. Similarly, the 0.5 percentage point cut in interest rates om 10 March, followed by a further cut on 19 March to 0.1%, was probably less potent than the other measures decided last week.

Asked about the collapse in sterling in the last few days, to a 35-year low against the dollar, Bean highlighted uncertainties about Britain’s exit from the European Union as well as the continuing current account deficit of 4% of GDP. He voiced confidence in the ability of his former colleague, Andrew Bailey, now governor of the Bank of England following Mark Carney’s departure last Monday. With most of his career spelt spent at the bank, his greatest attribute was ‘his knowledge and skills of running a central bank particularly if you come in to one of the biggest crises. I feel much more comfortable with Andrew then with some of the other candidates who were put forward.’

Music: https://www.bensound.com/royalty-free-music

Bank of Japan: Monetary easing unlimited

Bank of Japan: Monetary easing unlimited

March 19, 2020

Bank of Japan has announced additional monetary easing measures to blunt the impact of Covid-19 on financial markets. This followed the Federal Reserve's unexpected decision on 15 March to cut the federal funds to near-zero. Sayuri Shirai, professor of economics at Keio University, and Frederic Neumann, co-head of Asian economic research at HSBC, join OMFIF's Brandon Chye to explore what options are available to central banks, amid concerns over how effective intervention can really be.

Music: https://www.bensound.com/royalty-free-music

 
 
Investing in digital infrastructure

Investing in digital infrastructure

March 17, 2020

Infrastructure is the bedrock of connectivity and the smooth flow of goods and services. Quality infrastructure is a major contributor – if not an essential prerequisite – for economic development. Paul Lam, digital infrastructure strategy lead at Asian Infrastructure Investment Bank, joins OMFIF's Brandon Chye to discuss the growing importance of investment in digital infrastructure. They talk about the drivers, risks and opportunities in this area and the Asian Infrastructure Investment Bank's draft digital strategy.

Music: https://www.bensound.com/royalty-free-music

Synopsis: Central banks v coronavirus, Biden’s surge, and more

Synopsis: Central banks v coronavirus, Biden’s surge, and more

March 13, 2020

In this episode of Synopsis, OMFIF Subeditor Julie Levy-Abegnoli looks back over the most recent articles published on the OMFIF website, including those the Joe Biden's surge, the future of the EBRD, and how the Fed and ECB are responding to the coronavirus crisis.

Articles and other items referenced:

  1. Biden's surge and the power of fear
  2. Future of the EBRD
  3. Outlines of US response to coronavirus coming into relief
  4. Time to reset euro policy mix
  5. ECB should turn to supervisory forbearance
  6. Lagarde to shoot high and go big
  7. ECB puts the ball in the fiscal court
  8. Lamont analyses end of austerity

Music: Hey Mercy by Pierce Murphy is licensed under an Attribution License.

Lamont analyses end of austerity

Lamont analyses end of austerity

March 11, 2020

Britain has launched a £30bn fiscal stimulus to counter the coronavirus outbreak, the biggest increase in borrowing since 1992. Lord (Norman) Lamont, chancellor of the exchequer in 1992, joins David Marsh, OMFIF chairman, to discuss the end of austerity.

 

Music: https://www.bensound.com/royalty-free-music