Essays.
Long-form analysis that makes one argument well, the flagship work of the Review.
Colombia's Reserve Requirements Shift Large-Value Payments to Later Hours
Reductions in Colombia's reserve requirements and the introduction of a new securities settlement system have demonstrably altered financial institutions' intraday liquidity management, leading to a pronounced concentration of large-value payment settlements towards the end of the operational day.
RBI's Rohit Jain Urges Deeper Capital Markets for India's 2047 Goals
India's Deputy Governor Rohit Jain outlines the shift to market-based finance for its 2047 economic goals, requiring deeper capital markets to fund infrastructure and manage risk.
AI Adoption: Unravelling Its Multi-Directional Impact on the Natural Rate of Interest
The integration of artificial intelligence into global economic structures presents complex, multi-directional pressures on inflation and the natural rate of interest, necessitating a data-driven approach to monetary policy amid significant uncertainties surrounding productivity, income distribution, and investment dynamics.
New BoJ Research Unpacks Japan's Wage-Productivity Gap: Deflation and Labour Friction
Japan's persistent wage-productivity gap stems from a confluence of factors: rigid wage-setting, a deflationary environment, and a strong emphasis on job security. New research from the Bank of Japan reveals how these elements combine to suppress wage growth and hinder aggregate productivity gains through distorted labour allocation.
African Domestic Debt: Rising Costs & Rollover Risks Imperil Fiscal Health
Africa's increasing reliance on domestic currency debt has mitigated exchange rate risk and maintained market access, yet it simultaneously elevates debt service costs and rollover risks, while a concentration of government financing with banks and central banks may compromise financial stability and restrict private credit.
BDCs' $115 billion software exposure flags Generative AI risk mispricing
Business Development Companies (BDCs) have allocated approximately $115 billion to software firms, constituting a fifth of their total lending and over 80% of their technology portfolios. Despite the increasing revenue uncertainty for software companies due to generative artificial intelligence (AI) disruption, neither BDCs nor their equity investors have differentiated pricing for this exposure, according to Fernando Avalos, Giulio Cornelli, and Egemen Eren in a July 2026 BIS Bulletin. This static risk assessment occurs as credit spreads have narrowed, reducing buffers for potential losses, and a few large BDCs share a common pool of borrowers, raising concerns about correlated losses.