We find the litmus test is whether governments gain access to a safe source of funding in a 'domestic' currency. Of the list of solutions considered, both Purple bonds and E-bonds can meet this criterion.

The DIW is the largest and oldest economics institute in Germany and conducts research in many fields of economic analysis. In this contribution to the conference celebrating the 80th birthday of this important institution I feel stimulated to address a few analytical issues, raising questions...

The title of this year's conference “More than the Taylor rule: Monetary Policy, Prudential Issues and Central Banking” provides the grounds for discussing several interesting issues related to the role of central banks, building in particular on the experience acquired before and during the...

Today, the European Council is expected to endorse significant changes to the institutional set-up for financial supervision and regulation in the European Union. Undoubtedly these are important reforms, particularly - but not only - against the background of the financial crisis that started in...

In the last few years, the relationship between supervision and central banking has evolved. Following the example of the UK, supervisory responsibilities have been allocated in some countries to independent authorities, separate from the central bank. In other countries, such as the...