Debt Management
RBI research examines debt management conflict of interest
Working paper discusses whether the Reserve Bank of India’s dual monetary policy and debt management roles affect price stability mandate; finds little evidence of impact
IMF paper finds stronger and more complex fiscal rules following crises
Working paper compiles dataset of national and supra-national fiscal rules; suggests rules were strengthened after crises in the 1990s and after the financial crisis
RBI shuns foreign investors and derivatives in favour of structural ALM, says former deputy governor
Shyamala Gopinath believes market structure and regulation can be used to create ‘natural’ asset and liability management; approach is superior to managing risks with financial hedges
IMF paper examines impact of financial crisis on US state finances
Working paper studies effect of balanced budget rules at US state level; finds pro-cyclicality but suggests this could be mitigated without changing the rules
ECB paper studies sovereign debt and growth links
Working paper studies relationship between different levels of sovereign debt and growth; finds increasing debt only boosts short-run growth up to a certain threshold
Central Bank of Colombia paper analyses sovereign default risk
Working paper assesses main factors determining risk of Colombian government defaulting on its debt; finds different factors are important at different debt maturities
IMF paper analyses US capital flows and debt
Fund working paper develops model of international capital flows and resulting impact on debt dynamics; finds equity and FDI returns allowed US to maintain high debt levels
Israel’s Fischer calls for government to cut deficit
Stanley Fischer says Israeli government must cut its budget deficit to prepare for possible economic shocks from Europe; argues government should aim for deficit of 2.5% of GDP
ECB’s Asmussen attacks delays to Greek reforms
Jörg Asmussen says Greek government must get reform programme 'back on track'; blasts "reluctance" to implement necessary reforms
IMF paper studies debt sustainability in low-income countries
Working paper considers effect of financial crisis on debt sustainability in low-income countries; finds short-term impact but a return to sustainable levels in the longer run
Euro group agrees on single banking supervisory mechanism
Umbrella supervision body 'run by ECB' to be established; exhausted EC president refuses to discuss details of plan to directly recapitalise European banks
Fed paper examines balanced budget rules
Working paper considers whether balanced budget rules affect spending at different levels of government; finds rules impose discipline on the states but have little impact on federal spending
IMF paper examines changing bond demand
Working paper considers changes in investor demand for government bonds after the financial crisis; finds lower yields shift demand from foreign to domestic investors
Dallara to leave IIF after 19 years
Charles Dallara will leave the IIF in the "coming months" after 19 years as managing director; search for a replacement is on-going
IMF’s Lagarde praises ‘remarkable’ recovery in Latvia
Christine Lagarde highlights successful reform efforts in Latvia; Asmussen says struggling eurozone countries could learn lessons from Baltic experience
IMF paper analyses situation in Togo
Researchers evaluate public investment surges, growth and debt sustainability in Togo; find very large increase in public investment would have positive macroeconomic effects in the long-run
Italy could face more swap terminations
Italian politicians claim Morgan Stanley's swap termination in January will be a one-off - but dealers say Italy's debt office is subject to other clauses that could have the same effect
BoE’s Fisher calls for central banks to bulk up risk management capabilities
Paul Fisher explains benefits of central banks doing independent credit assessment when evaluating collateral; says risk management functions need to be ‘bigger’ in central banks
OECD’s Gurría wants ‘mother of all’ firewalls in Europe
OECD secretary-general demands expansion of emergency funds available to struggling eurozone sovereigns; wants monetary conditions to remain ‘supportive’
ECB allows eurozone central banks to veto collateral
ECB says central banks in member countries can refuse bank bonds guaranteed by governments of countries involved in EU/IMF bailout programmes as collateral
IMF releases latest country report on Greece
Report finds improvements in Greece since Fund intervention first started but deficit targets are 'ambitious'
International regulators uneasy over Volcker rule
Ban on proprietary trading could affect liquidity in non-US bond markets, regulators argue
IMF board approves €28 billion for Greece
IMF releases first tranche of funds as part of Greece’s ‘exceptionally high-risk’ economic adjustment programme; Iceland repays some IMF debt early
Fed paper asks if affordable housing law led to subprime lending
Federal Reserve Bank of St Louis working paper asks whether affordable housing legislation in the US contributed to the subprime securities boom