Yale School of Management

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Governments Support Businesses through Equity Investments

May 11, 2020

In response to the economic shutdown caused by COVID-19, many countries have announced plans to take equity stakes in private businesses. Germany and Poland have announced large-scale programs focused on relatively large companies that the government determines are systemically important. Other countries, like the U.S., have announced equity programs that target critical industries, which we cover in a separate survey. Several countries -- including the U.K., France, and Germany -- have also announced much smaller programs dedicating small sums to startups or small and medium-sized enterprises, as part of broader efforts to support small businesses. 

Continue reading “Governments Support Businesses through Equity Investments”

News in Systemic Risk: Monday, May 11 2020 (10 a.m. ET)

May 11, 2020

Survey on the Access to Finance of Enterprises: Small businesses report challenging outlook for their access to external financing due to COVID-19 (European Central Bank)

The CCP-bank nexus in the time of Covid-19 (Wenqian Huang, Előd Takáts; Bank of International Settlements)

An ECB digital currency – a flight of fancy? (Yves Mersch; European Central Bank)

Global and domestic financial cycles: variations on a theme (Iñaki Aldasoro, Stefan Avdjiev, Claudio Borio, Piti Disyatat; Bank of International Settlements)

COVID-19 and the transmission of shocks through domestic supply chains (Fergal McCann, Samantha Myers; Central Bank of Ireland)

The Initial Labour Market Impact of COVID-19 (Stephen Byrne, Dermot Coates, Enda Keenan,Tara McIndoe-Calder ; Central Bank of Ireland)

The case for permanent stimulus (Paul Krugman; VoxEU)

How the Economy Will Look After the Coronavirus Pandemic (Joseph E. Stiglitz, Robert J. Shiller, Gita Gopinath, Carmen M. Reinhart, Adam S. Posen, Eswar Prasad, Adam Tooze, Laura D’andrea Tyson, Kishore Mahbubani; Foreign Policy)

Despite Recent Bets, Fed Isn’t Likely to Consider Negative Interest Rates (Nick Timiraos; Wall Street Journal)

Fed set to adopt ‘elements’ of price-level targeting (William Towning; Central Banking)

Continue reading “News in Systemic Risk: Monday, May 11 2020 (10 a.m. ET)”

News in Systemic Risk: Friday, May 8 2020 (10 a.m. ET)

May 8, 2020

The Money Market Mutual Fund Liquidity Facility (Marco Cipriani, Gabriele La Spada, Reed Orchinik, and Aaron Plesset; Federal Reserve Bank of New York)

The monetary policy response to the pandemic emergency (Phillip R. Lane; European Central Bank)

The COVID-19 Crisis and the Monetary Policy Response (Gabriel Makhlouf; Central Bank of Ireland)

On the instability of banking and other financial intermediation (Chao Gu, Cyril Monnet, Ed Nosal, Randall Wright; Bank for International Settlements)

Effects of Covid-19 on the banking sector: the market's assessment (Iñaki Aldasoro, Ingo Fender, Bryan Hardy, Nikola Tarashev; Bank of International Settlements)

Monetary Policy, Self-Fulfilling Expectations and the U.S. Business Cycle (Giovanni Nicolò; Federal Reserve Board of Governors)

Oceans Apart? China And Other Systemically Important Economies (Hongyi Chen, Pierre Siklos; Hong Kong Institute for Monetary and Financial Research)

Is Central Bank Currency Fundamental to the Monetary System? (Hanna Armelius, Carl Andreas Claussen, Scott Hendry; Bank of Canada)

Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019 (Fredrik N G Andersson, Lars Jonung; VoxEU)

Fed Officials See Economy Avoiding Worst-Case Outcome Amid Crisis (Michael S. Derby; Wall Street Journal)

Continue reading “News in Systemic Risk: Friday, May 8 2020 (10 a.m. ET)”

Governments Support Businesses through Equity Investments

May 11, 2020

In response to the economic shutdown caused by COVID-19, many countries have announced plans to take equity stakes in private businesses. Germany and Poland have announced large-scale programs focused on relatively large companies that the government determines are systemically important. Other countries, like the U.S., have announced equity programs that target critical industries, which we cover in a separate survey. Several countries -- including the U.K., France, and Germany -- have also announced much smaller programs dedicating small sums to startups or small and medium-sized enterprises, as part of broader efforts to support small businesses. 

Continue reading “Governments Support Businesses through Equity Investments”

News in Systemic Risk: Monday, May 11 2020 (10 a.m. ET)

May 11, 2020

Survey on the Access to Finance of Enterprises: Small businesses report challenging outlook for their access to external financing due to COVID-19 (European Central Bank)

The CCP-bank nexus in the time of Covid-19 (Wenqian Huang, Előd Takáts; Bank of International Settlements)

An ECB digital currency – a flight of fancy? (Yves Mersch; European Central Bank)

Global and domestic financial cycles: variations on a theme (Iñaki Aldasoro, Stefan Avdjiev, Claudio Borio, Piti Disyatat; Bank of International Settlements)

COVID-19 and the transmission of shocks through domestic supply chains (Fergal McCann, Samantha Myers; Central Bank of Ireland)

The Initial Labour Market Impact of COVID-19 (Stephen Byrne, Dermot Coates, Enda Keenan,Tara McIndoe-Calder ; Central Bank of Ireland)

The case for permanent stimulus (Paul Krugman; VoxEU)

How the Economy Will Look After the Coronavirus Pandemic (Joseph E. Stiglitz, Robert J. Shiller, Gita Gopinath, Carmen M. Reinhart, Adam S. Posen, Eswar Prasad, Adam Tooze, Laura D’andrea Tyson, Kishore Mahbubani; Foreign Policy)

Despite Recent Bets, Fed Isn’t Likely to Consider Negative Interest Rates (Nick Timiraos; Wall Street Journal)

Fed set to adopt ‘elements’ of price-level targeting (William Towning; Central Banking)

Continue reading “News in Systemic Risk: Monday, May 11 2020 (10 a.m. ET)”

News in Systemic Risk: Friday, May 8 2020 (10 a.m. ET)

May 8, 2020

The Money Market Mutual Fund Liquidity Facility (Marco Cipriani, Gabriele La Spada, Reed Orchinik, and Aaron Plesset; Federal Reserve Bank of New York)

The monetary policy response to the pandemic emergency (Phillip R. Lane; European Central Bank)

The COVID-19 Crisis and the Monetary Policy Response (Gabriel Makhlouf; Central Bank of Ireland)

On the instability of banking and other financial intermediation (Chao Gu, Cyril Monnet, Ed Nosal, Randall Wright; Bank for International Settlements)

Effects of Covid-19 on the banking sector: the market's assessment (Iñaki Aldasoro, Ingo Fender, Bryan Hardy, Nikola Tarashev; Bank of International Settlements)

Monetary Policy, Self-Fulfilling Expectations and the U.S. Business Cycle (Giovanni Nicolò; Federal Reserve Board of Governors)

Oceans Apart? China And Other Systemically Important Economies (Hongyi Chen, Pierre Siklos; Hong Kong Institute for Monetary and Financial Research)

Is Central Bank Currency Fundamental to the Monetary System? (Hanna Armelius, Carl Andreas Claussen, Scott Hendry; Bank of Canada)

Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019 (Fredrik N G Andersson, Lars Jonung; VoxEU)

Fed Officials See Economy Avoiding Worst-Case Outcome Amid Crisis (Michael S. Derby; Wall Street Journal)

Continue reading “News in Systemic Risk: Friday, May 8 2020 (10 a.m. ET)”