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Covid-19 briefing: heterogeneous impacts of the pandemic (Bank Underground, 5 min read) Summarises recent literature finds ‘workers in jobs with close proximity to others had the most adverse labour market outcomes’ and ‘workers in more vulnerable jobs tend to be less educated, have lower incomes, and are more likely to be renters.’
The international dimension of an incomplete EMU (ECB, 59 page read) ECB finds ‘euro area stress shocks are significant not only for the euro area but also for the rest of the world’.
Destabilizing Stability? Exchange Rate Arrangements and Foreign Currency Debt (IMF, 21 page read) Moving towards greater exchange rate flexibility can insulate EMs from accumulating excessive external FX debts. The scale of the benefits are associated with the prudential regulatory framework, the composition of a country’s BOP, the extent to which foreign debt is hedged, and the structure of domestic financial markets. More generally, the move can alter the risk-return trade off by firms.