July 2022

Post n°280

The Hegemony of the Dollar from a Two-Century Perspective

Published on 07/21/2022

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By Roger Vicquéry

Recent geopolitical tensions have put the hegemonic role of the dollar, and its potential demise, back into the spotlight. Looking at a new long run measure of global currency competition over two centuries, no global currency leader has been able to sustain such a large lead over its competitors for such a prolonged period.

Chart 1: The Rise and Fall of Global Currencies over Two Centuries
Chart 1: The Rise and Fall of Global Currencies over Two Centuries Source: Vicquéry (2022). Global currency dominance GDP-weighted scores.
Updated on 07/22/2022 09:14
Post n°279

China at the heart of Asian value chains

Published on 07/18/2022

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By Camille Macaire and Marie-Élisabeth de la Serve

The Covid crisis has strengthened China’s central role in global value chains. However, the rise in its position in these chains dates back to before the pandemic. It has become particularly closely integrated with ASEAN members, which import a growing share of intermediate goods from China.

Chart 1: China is building new dependencies on its products, especially in ASEAN countries
Chart 1: China is building new dependencies on its products, especially in ASEAN countries Source: OECD Trade in Value Added (TiVA) database. Note: Share of Chinese value added in final demand, manufacturing industry.
Updated on 07/20/2022 08:40
Post n°278

Green bonds: is their growth sustainable?

Published on 07/12/2022

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By Tamaki Descombes, Antoine Kergadallan and Quoc-Trieu Le

Issuance of green bonds has been growing at a fast pace in the past 10 years, mainly under the impetus of the European Union and its Member States, which are the world's largest issuers. We take a closer look at this market and explore the challenges it poses, together with the prospects going forward: interactions with monetary policy, investor appetite, greenwashing risk, etc.

Chart 1: Green bonds issued in accordance with the International Capital Market Association’s principles
Chart 1: Green bonds issued in accordance with the International Capital Market Association’s principles Source: BloombergNEF, authors’ calculations
Updated on 07/13/2022 08:37
Post n°277

Does robot density influence the effects of monetary policy?

Published on 07/05/2022

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By Stéphane Lhuissier

In a context where industrial jobs may be replaced by robots, this post shows that monetary policy is transmitted differently depending on industrial sectors’ degree of robotisation. Jobs in heavily robotised industries are half as sensitive to an interest rate change as those in low-robotisation industries.

Chart 1: Monetary policy transmission is weakened in heavily robotised industries
Chart 1: Monetary policy transmission is weakened in heavily robotised industries Source: Author’s calculations.
Updated on 07/15/2022 12:03