The Credit Suisse crisis in 2023 demonstrated that foreign currency funding vulnerabilities remain material even in advanced, well-regulated financial systems. This column introduces a new
The US dollar’s share of globally allocated foreign exchange reserves has fallen from over 70% in the late 1990s to approximately 58% today (Figure 1).
For years, the European fiscal landscape was characterised by a reliable, if tense, dichotomy: a frugal core led by Germany providing the ‘fiscal space’ that