Banks’ cross-border claims fell by $1.4 trillion in Q4 2022, slowing the year-on- year (yoy) growth rate to 6%. Both lower bank credit (i.e., loans and holdings of debt securities) and a drop in the market value of banks’ derivatives and other residual instruments contributed to the decline. Global cross-border bank credit (i.e., loans and holdings of debt securities) fell by $749 billion, or $400 billion on a seasonally adjusted basis. Euro-denominated credit declined by $231 billion after expanding earlier in the year. Cross-border bank credit to emerging market and developing economies (EMDEs) fell by $179 billion in Q4 2022 due to weaker dollar lending. Credit to the Asia-Pacific region contracted the most. The BIS global liquidity indicators (GLIs) show a large contraction in dollar credit to non-banks in EMDEs in Q4 2022. Dollar credit to EMDEs shrank by 4%, a rate last seen during the Great Financial Crisis of 2007–09.
- Date Posted:
- May 5, 2023
Assembly theory started when Lee Cronin of the University of Glasgow in Scotland asked why, given the astronomical number of ways to combine different atoms, nature makes some molecules and not others. It’s one thing to say that an object is possible according to the laws of physics; it’s another to say there’s an actual pathway for making it from its component parts. “Assembly theory was developed to capture my intuition that complex molecules can’t just emerge into existence because the combinatorial space is too vast,” Cronin said. Sara Walker of Arizona State University, meanwhile, had been wrestling with the question of life’s origin — an issue closely related to making complex molecules, because those in living organisms are far too complex to have been assembled by chance. Something, Walker mused, must have guided that process even before Darwinian selection took over. Called assembly theory, the idea underpinning the pair’s strategy has even grander aims. As laid out in a recent series of publications, it attempts to explain why apparently unlikely things, such as you and me, even exist at all. And it seeks that explanation not, in the usual manner of physics, in timeless physical laws, but in a process that imbues objects with histories and memories of what came before them.