Economics
Working group minutes: Central banks adopt scenario analysis
Approach is guiding institutions’ responses to Middle East war and El Niño
Investors price in sanctions risk for US equities – study
NY Fed authors say geoeconomic risk driven by firms’ exposure to sanctioned countries’ supply chains
Rehn says European safe asset ‘deserves further examination’
ESRB vice-chair says jointly issued bond could help fund defence and energy, but design is the hurdle
IMF approves El Salvador funds, despite bitcoin purchases
Institution granted waivers after government missed performance targets, including on crypto
Dollar’s share of foreign reserves fell slightly in Q2 – IMF
Euro claims rose, leading to fall in proportion of US assets according to latest Cofer figures
Stablecoins issuers’ debt wish not enough to meet US needs – study
SF Fed authors say demand for Treasuries will be much smaller than government’s requirements
BdF chief urges French politicians to break budget deadlock
Central bank governor warns another stalemate could jeopardise France’s economic future
US firms are actively divesting from China – Fed note
Businesses have been shrinking Chinese holdings since 2020, research suggests
AI not having major impact on US graduate jobs – study
NBER researchers say changes in employment market are not statistically significant
Low- and middle-income US households most hurt by housing inflation – Barr
Governor signals more rate hikes to come to tame inflation
China’s machinery and transport exports are hurting EU – ECB paper
Similarity between EU and Chinese goods exports has increased since 2019, research finds
Canadian households and firms adapting to volatility – Macklem
Country has gone through ‘several stages of grief’ over death of open trade with US, says governor
Strait of Hormuz is top barometer of supply stress – BIS study
Impact of traffic disruption through other waterways neither as consistent nor as global
UK mortgages out of sync with BoE policy
Average two-year rates for home loans have risen since March, despite BoE’s extended pause
ADB offers $5bn to alleviate energy and fertiliser crisis
Institution says funds will be delivered on selective and demand-driven basis
Kosovo joins ECB’s enhanced repo facility
National central bank says inclusion provides ‘additional layer of resilience’ for financial system
Time to be ‘amateur geopolitical analysts’ – ex-Obama adviser
Lazard CEO Peter Orszag says era of ‘supply side 2.0’ requires cross-disciplinary approach
Treasury buyback risks a (collateral) chain reaction
Rebalancing of bond tenors could stretch collateral links to breaking point, argues economist
De-dollarisation no guarantee of EM policy autonomy – study
Sarb paper argues sound domestic fundamentals are more crucial than lowering dollar usage
Zombie firms in Asian EMEs cause disinflation in AEs – study
Spillover is transmitted to advanced economies via trade channels, BIS report says
Bolivia’s central bank suspends dollar purchases
Institution says increasing HLAs gave it leeway to meet obligations and mitigate FX market pressure