Inflation targeting has been used as a monetary policy tool by central banks since the late 1980s, but recent events have raised the question  as to whether the sacrosanct 2% target should be raised. What would be the implications of setting a higher target, and would it help solve an inflation crisis such as that currently being experienced?

As part of its “Coordinated Plan on Artificial Intelligence,” the EU has proposed a regulation that sets out harmonized rules on artificial intelligence. This addresses “the risks and problems linked to AI, without unduly constraining or hindering technological development or otherwise disproportionately increasing the cost of placing AI solutions on the market.” Many other countries are also looking at introducing legal frameworks around the use of AI. Why are such regulations emerging and will they improve or hinder the uptake of AI?

The risks associated with greenwashing – false/misleading marketing regarding the sustainability attributes of a product or service – are on the rise with signs that net-zero and other commitments made by some members of the financial sector may not be credible. But identification of greenwashing practices remains problematic as the limitations of agencies charged with evaluating ESG practices become apparent.

Many commodities have become key inputs to the global economy, but their production is often associated with processes that have serious environmental and ethical issues – deforestation, greenhouse gas (GHG) emissions, and forced/child labor, to name but a few. Are the negative impacts of commodity production inevitable or can sustainability-linked initiatives ensure the commodities sector plays its part in the green transition?

While the failed crypto exchange FTX has heightened uncertainty over this asset class, another potentially seismic event for the industry took place recently when the Ethereum blockchain merged with another blockchain (Beacon Chain). “The Merge” saw Ethereum switch its verification system from the established proof-of-work (PoW) protocol to a proof-of-stake (PoS) approach, with major implications for sustainability, scalability, and other factors related to blockchains.

Around the world, many economies are either in recession or heading toward one as a result of the inflation crisis and the associated policy response from monetary authorities. But what exactly is a “recession,” what happens during it, how long does it last, and how does it end?

With many economies bracing for downturn and a higher interest rate environment, a sharp spike in default rates is a likely prospect. What steps should banks and other lenders take to manage this?