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Beyond the Pandemic: Eight Proposals to Revive the Banking Union (VoxEU, 4 min read) Europe’s banks are better capitalized and regulated than prior to the debt crisis, but the goal of diversified risk sharing through banking union and an EU-wide deposit insurance scheme remains incomplete. COVID’s impact on solvency threatens to reverse the partial progress made.
Keeping Economic Data Flowing During COVID-19 (IMF Blog, 3 min read) Delayed or imprecise data during COVID can complicate the policy response and assessment of the economic impact. IMF recommendations on best practice to compile inflation, trade and growth data include i) prioritizing components, ii) using alternative datasets, and iii) greater transparency on methodology.
Did the Dollar’s Position as the Leading Reserve Currency Help Hold Treasury Yields Down This Spring? (CFR, 8 min read) Large foreign selling (>$300bn) of USTs, the result of EM central bank selling reserves to offset capital outflows, was accompanied by USD appreciation and falling yields in March. This was because the Fed stepped in and bought even more USTs than foreigners sold.