The OMFIF Podcast

The OMFIF/EY Covid response series: stimulus transmission and its financial consequences

Part two of the OMFIF/EY Covid response series

What are the consequences of addressing the consequences? In this edition, OMFIF's John Orchard and EY's David Barker discuss the shock-and-awe measures by governments to rescue their economies from the Covid-19 crisis and the short- and medium-term implications for their finance ministries. What are the paths out of the emergency schemes? How are governments planning to restart their economies and what will it mean for their finances, and their financial sectors? How is this crisis fundamentally reordering their priorities in both developed and emerging economies?

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

The OMFIF/EY Covid response series: Stimulus transmission and the banking sector

How are commercial banks coping with Covid-19? Obliged to implement government-guaranteed lending quickly while also handling other crisis-related operational and commercial challenges, they have their work cut out. What has worked well and what has not, yet? How are the opposing needs of speed and prudence reconciled? How are banks preparing for impairments to their loan books? What does the crisis mean for their digital transformations? And is this the opportunity to restore the reputational damage of 10 years ago?  OMFIF Chief Executive Officer John Orchard discusses these themes with Jan Bellens, global sector leader, banking & capital markets at EY.

Download the written conversation: https://www.omfif.org/wp-content/uploads/2020/05/Transcript-EY-Jan-Bellens-JO-vers.docx 

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

Week in review: German constitutional court v ECB, the dollar-renminbi conundrum, and OMFIF's Digital Monetary Institute

OMFIF’s Julie Levy-Abegnoli looks back over some of the most recent articles published on the OMFIF website, including those on the German constitutional court ruling on Europe's quantitative easing, the global role of the dollar and renminbi, and digital finance.

Articles and other items referenced:

1. Conflict looming over ECB scrutiny and independence: https://www.omfif.org/2020/05/conflict-looming-over-ecb-scrutiny-and-independence/
2. The dollar-renminbi conundrum: https://www.omfif.org/2020/05/the-dollar-renminbi-conundrum/
3. OMFIF Digital Monetary Institute: https://www.omfif.org/dmi
4. Neighbours look to China for payment technology: https://www.omfif.org/2020/05/neighbours-look-to-china-for-payment-technology/
5. Crisis of disconnection: https://www.omfif.org/2020/05/crisis-of-disconnection/
6. Analysing the world economic outlook: https://www.omfif.org/events/the-great-lockdown-analysing-the-world-economic-outlook/
7. EIB policy response to Covid-19: https://www.omfif.org/events/eib-policy-response-to-covid-19/
8. The Federal Reserve's outlook for testing times: https://www.omfif.org/events/the-federal-reserves-outlook-for-testing-times/
9. Economic impact of coronavirus on South Korea: https://www.omfif.org/events/economic-impact-of-coronavirus-on-south-korea/
10. Japan's response to Covid-19: https://www.omfif.org/events/japans-response-to-covid-19-impact-on-financial-markets-and-economy/
11. Economic outlook for Japan: https://www.omfif.org/events/economic-outlook-for-japan/

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

Week in review: Central bank independence, how to escape a recession, and demystifying debt

OMFIF’s Julie Levy-Abegnoli looks back over some of the most recent articles published on the OMFIF website, including those on central bank independence, how to escape a recession, and measuring debt sustainability.

Articles and other items referenced:

1. End of myth of ‘independent’ central banks: https://www.omfif.org/2020/04/end-of-myth-of-independent-central-banks/
2. The misnomer of central bank ‘independence’: https://www.omfif.org/2020/04/the-misnomer-of-central-bank-independence/
3. Global financial stability overview: https://www.omfif.org/podcast/global-financial-stability-overview-markets-in-the-time-of-covid-19/
4. How to escape a recession: https://www.omfif.org/2020/04/how-to-escape-a-recession/
5. Demystifying debt dynamics: https://www.omfif.org/2020/04/demystifying-debt-dynamics/
6. Bank of England communications - Engaging, educating and building trust: https://www.omfif.org/podcast/bank-of-england-communications-engaging-educating-and-building-trust/
7. German economic outlook and Covid-19 response: https://www.omfif.org/events/german-economic-outlook-and-covid-19-response/
8. Ensuring capacity for recovery through sustainable development bonds: https://www.omfif.org/events/ensuring-capacity-for-recovery-through-sustainable-development-bonds/
9. Hungary’s response to Covid-19: https://www.omfif.org/events/hungarys-response-to-covid-19/
10. Infrastructure investments in India: https://www.omfif.org/events/infrastructure-investments-in-india/

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

 

Dollar hegemony and the future of the renminbi

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Bank of England communications: Engaging, educating and building trust

In 2018, the Bank of England produced a research report with the UK's Behavioural Insight Team titled, 'Enhancing central bank communications using simple and relatable information'. The report looked into how usual modes of communication can be adapted to increase the broader public's understanding of central banks' policies.

David Bholat, senior manager, advanced analytics and co-author of the Bank's report, and Chris Peacock, head of content creation at the Bank of England, join OMFIF's Helen Gibson to discuss the report and its findings, before looking at how the BoE is using more simplified language to educate the public and increase their engagement with, and understanding of the Bank's policies.

Further reading:

https://www.omfif.org/gpi-2019-special-report-central-bank-communications/

https://www.omfif.org/2019/10/lagardes-communications-challenge/

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

Global Financial Stability Overview: Markets in the time of COVID-19

As the Covid-19 crisis upends the global economy, the outlook for 2020 has changed profoundly. Borrowing costs have increased significantly and global financial flows have been severely disrupted. The International Monetary Fund and other institutions have responded swiftly by implementing emergency measures and adjusting their assessments. Fabio Natalucci, deputy director of the monetary and capital markets department at the IMF, joins Mark Sobel, US chairman of OMFIF to discuss the Fund’s Global Financial Stability Report and its outlook for the global economy.

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

Week in review: Libra update, digital helicopter money, SME rescue packages, and more

OMFIF’s Julie Levy-Abegnoli looks back over some of the most recent articles published on the OMFIF website, including those the latest Libra white paper, digital helicopter money, and SME rescue packages.

Articles and other items referenced:

1. Libra reinvents itself: https://www.omfif.org/2020/04/libra-reinvents-itself/
2. Making helicopter cash work: https://www.omfif.org/2020/04/making-helicopter-cash-work/
3. OMFIF Digital Finance Institute: https://www.omfif.org/wp-admin/omfif.org/dfi
4. SME support - Less haste, more speed: https://www.omfif.org/2020/04/sme-support-less-haste-more-speed/
5. Risk and opportunities in natural capital: https://www.omfif.org/podcast/risk-and-opportunities-in-natural-capital/
6. Avoiding a sovereign debt crisis: https://www.omfif.org/podcast/covid-19-and-emerging-markets-avoiding-a-sovereign-debt-crisis/
7. Italy's crisis response and road to recovery: https://www.omfif.org/events/italys-crisis-response-and-road-to-recovery/
8. Investment strategy and portfolio management during the oil crash and Covid-19: https://www.omfif.org/events/investment-strategy-and-portfolio-management-during-covid-19/
9. Dollar hegemony and the future of the renminbi: https://www.omfif.org/events/dollar-hegemony-and-the-future-of-the-renminbi/
10. Economic fallout from Covid-19: https://www.omfif.org/events/economic-briefing-economic-fallout-from-covid-19-2/
11. EIB policy response to Covid-19: https://www.omfif.org/events/eib-policy-response-to-covid-19/

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

Covid-19 and emerging markets: Avoiding a sovereign debt crisis

Amid dramatic capital outflows, a collapse in commodity prices and a surge in dollar demand, the pandemic has made it significantly difficult for emerging markets to refinance debts. Preventing debts from becoming permanently unmanageable is crucial. Sean Hagan, senior fellow at the Peterson Institute for International Economics and former general counsel and director of the legal department at the International Monetary Fund (2004-18), joins OMFIF’s Mark Sobel to discuss sovereign debt restructuring. They cover the balance between new money and debt relief adjustment, differentiating between low income counties and emerging markets, and the role of Chinese credits and the private sector.

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

Risk and Opportunities in nature capital

Keith Lee, senior vice-president of the Asia Sustainable Finance Initiative and the World Wildlife Fund, joins OMFIF's Brandon Chye to discuss the importance of natural capital and biodiversity to the financial system, and what needs to be done to integrate these into the broader environmental, social and governance landscape. They also talk about the role of regulators and investors.

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