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IMF staff say Argentina’s debt is unsustainable
Report calls for haircut for private creditors as Argentine government demands IMF debt forgiveness
FOMC discusses communication ‘escape clauses’
Fed might need “leeway” to deal with financial instability, some FOMC members say
Economist joins Bank of Japan’s rate-setters
BoJ board member in favour of continued QE but has expressed doubts on negative rates
Quotes
For Norges Bank as a central bank, the biggest challenge will be to maintain focus on its core functions while the responsibility for managing the oil fund increases in scale and complexity. It may, over time, look like the manager of the one of the world’s largest single pools of financial assets trying to run a central bank on the side.
Knut Kjær, former chief executive, Norges Bank Investment Management
You probably think minutes are a gold mine. Well, they are like a gold mine in that there is a whole bunch of rock and not much gold.
Stephen Poloz, governor, Bank of Canada
“Without an agreed framework, in the next crisis, Hank Paulson’s successor will once again be kneeling in front of Nancy Pelosi – I assume she will still be there – asking Congress to rescind the legislation that has restricted the Fed’s powers.”
Mervyn King, former governor, Bank of England
Sometimes, what is forgotten with forward guidance is that we are also speaking to households and businesses, to give them a sense of the general direction, some general orientation: be prepared, but do not overreact.
Mark Carney, governor, Bank of England
Financial intermediaries continue to exercise their privileged position, protected by licences, to determine where money comes from and where it goes to, so as to maximise their already disproportionately large profits and bonuses, paid for eventually by users of financial services
Joseph Yam, former chief executive, Hong Kong Monetary Authority
There’s this fear that domestic currencies are going to be totally undermined, so you might actually want to have some sort of central bank digital currency
Tobias Adrian, financial counsellor, IMF
It is only when you get to a relatively extreme situation, where your entire yield curve is very close to the effective lower bound, that targeting specific long-term yields makes sense
Eric Rosengren, president, Federal Reserve Bank of Boston
It is possible to take out some of the [populist] anger. But you really do have to have a good executive response. We will have to see how that works out.
Raghuram Rajan, former governor, Reserve Bank of India
China may do some things to reduce the trade imbalance with the US. But actually, the bilateral trade balance does not mean very much. We need to discuss the multilateral balance.
Zhou Xiaochuan, former governor, People’s Bank of China
Editor's choice
Interview: Luiz Awazu Pereira da Silva
BIS deputy general manager talks about the obstacles central banks face with regard to climate change
Comment
Stability versus solvency
Bulgaria: long live the currency board
Yngve Slyngstad: contrarian person, brilliant investor
Our Take
Macroeconomics is not broken
Seven threats from big tech’s libra
30 years of central banking
ECB paper presents new model for ‘fire sale’ contagion
Weak eurozone banks hindered monetary policy – Bundesbank paper
Many new UK financial products lack consumer protections – FCA
Authorities in Bahamas and Colombia sign supervision agreement
Bank of Korea stops handling overseas cash as coronavirus spreads
German house prices rise by slowest rate since 2014 – Bundesbank