Currently, there are increasing suggestions that the lower levels of governments should issue joint bonds in cooperation with the central government. In Spain, so-called “hispanobonos” have been discussed for quite some time. Representatives of some – mainly fiscally weaker – German federal states have lately suggested so-called “Deutschlandbonds”. What is the main idea behind them? [more]

Mainly as a direct response to the international financial crisis, a new policy framework is taking shape with the aim to prevent systemic risk in banking and financial markets. The new framework aims to fill a gap between monetary policy and microprudential supervision. Whether macroprudential supervision succeeds will crucially depend on how policies are implemented in practice. As the search for effective tools and policies is still ongoing, it should not be narrowed down prematurely to prudent bank capital and liquidity rules. Instead, a more holistic perspective on financial risks, including risks that stem from monetary policy and non-bank financial intermediation, is needed. [more]

“...I expect global freight transport to grow further this year and next, which also means increases in sea freight and cargo handling in ports. In light of slightly weaker global economic activity, growth rates – as in 2011 – will fail to match the record increases achieved in 2010. However, robust global growth will probably help sea transport as a whole to grow by approximately 4% p.a. Probable drivers are China’s and other emerging markets’ appetite for commodities on the one hand, and a further, albeit in my opinion probably slower, integration of the world's economies and thus the globalisation of production processes on the other...“ [more]