The ECB’s Governing Council moved to the preparation phase of the digital euro in October 2023. This column studies the implications of the digital euro for financial stability. New survey data indicate that German households are open to the digital euro. However, the demand for digital euro also raises financial stability concerns as households seem […]
An extended period of benign funding conditions has changed corporate bond markets globally. This column shows how the investment grade segment has become dominated by the lowest-rated (BBB) issuers, and these issuers have become more leveraged over time. Given the large stock of BBB-rated bonds, even relatively low transition rates – downgrades from investment grade […]
Imagine living in a country where basic services are a luxury, the government is on the brink of collapse, and economic stability feels like a distant dream. This is the reality for almost one billion people in so called fragile and conflict-affected states—nations struggling to provide even the most fundamental necessities to their citizens, often […]
