The Revolving Door Comes to Cryptocurrency

By | October 15, 2018

Ask any cryptocurrency company what their biggest challenge is, and they’ll likely tell you “legal and regulatory issues.” The legal and regulatory environment surrounding cryptocurrency is complex, uncertain, and changing by the day. In the U.S., no one agency has sole jurisdiction over cryptocurrency, and different agencies have varied interpretations of what cryptocurrency is (largely… Read More »

The Corrosive Effect of Offshore Financial Centers on Multinational Firms’ Disclosure Strategy

By | October 9, 2018

Courtesy of Walid Ben Amar, Luo He, Tiemei Li, and Michel Magnan Establishing subsidiaries in offshore financial centers (OFCs), such as the Bahamas, Bermuda, and the Cayman Islands, has become increasingly common for multinational corporations. For multinationals headquartered in the U.S., the primary (or at least ostensible) purpose of creating OFC subsidiaries is to reduce taxes.… Read More »

Financing Private Investment in China: The Role of Alternative Finance and Banking Reforms

By | September 28, 2018

Courtesy of Noëmie Lisack Small, young private firms in China have long been struggling to obtain formal bank loans. To bypass financial constraints, these firms have resorted to alternative, less formal financing sources. In this context, Chinese authorities are aiming to develop a more formal, market-based, and better regulated credit sector. In a Staff Working… Read More »

Three Countries America Can Learn From When it Comes to Protecting Consumers

By | September 25, 2018

Courtesy of Elena Botella Consumer protection doesn’t appear to be very high on the Trump administration’s list of priorities. In fact, since President Trump tapped Mick Mulvaney to lead the Consumer Financial Protection Bureau in November, a number of regulations and initiatives introduced during the Obama years have been rolled back. This includes relaxing restrictions… Read More »

Financial Development and Industrial Pollution

By | September 20, 2018

Courtesy of Ralph De Haas (EBRD) and Alexander Popov (ECB) At the 2015 Paris Climate Conference (COP21), the leaders of the G20 stated their intention to significantly scale up green-finance initiatives to fund low-carbon infrastructure and other climate solutions. A key example is the burgeoning market for green bonds to fund projects that save energy,… Read More »

Chinese Depositary Receipts: Attracting The Listing Of Tech Unicorn Companies Through Securities Law Reform

By | September 13, 2018

Courtesy of Lerong Lu and Ningyao Ye[1] Recent reforms to Chinese securities law are designed to entice local tech giants to list their shares in mainland China as opposed to overseas markets like Hong Kong or New York. One reform idea is modelled off a long-standing concept in the U.S. and Europe known as depositary… Read More »

Abolishing Deposit Insurance: Why A “Radical” Policy Makes So Much Sense

By | September 10, 2018

Courtesy of Andreas Wesemann Deposit insurance has been the most sacrosanct component of the regulatory regime for banks since it was widely introduced in Europe during the 1970s following the collapse of the Bretton Woods regime. While designed to protect consumers against undercapitalized banks, and their tendency to collapse in times of stress, deposit insurance… Read More »

Anonymous Money is Fungible Money

By | August 23, 2018

Courtesy of Alastair Berg[1] Fungibility is a key characteristic of money.  This has long been taught to students in high school and university economics courses. A rational individual should be indifferent to exchanging one note or coin with another of equal nominal value, provided of course there are no transaction costs. some degree this characteristic… Read More »