The left side of chart 1 shows an index of EME local-currency sovereign bond yields along with a roughly similar maturity U.S. Treasury yield. The line on the right is the differential between the two, plotted against net inflows of private capital to a selection of EMEs, shown by the bars.
Some critics argue that this timeframe is not ambitious enough. However, I am convinced that central banks should proceed with the necessary diligence and prudence, given that CBDC is nothing less than a completely new form of money. There must be no negative consequences for monetary policy and financial stability.