Summary Focus Early warning indicators for financial crises are important elements for central bankers to guide macroprudential policies. One of these indicators – the deviation of the credit-to-GDP ratio from a long-term trend, in short, the credit-to-GDP spread – is very useful in this regard. Basel III therefore suggests thatRead More →

How “Stablecoins” Could Trigger Chaos October 07, 2021 Dollar pegged cryptocurrencies are proliferating rapidly. But without regulation, these so-called stablecoins pose serious risks to the US financial system, argue Gary B. Gorton of Yale SOM and his co-author. Should governments print money to survive the pandemic? March 22, 2021 CentralRead More →