Central Banks
Bank of Finland paper urges QE use outside crises
Analysis based on DSGE model finds asset purchases are a useful monetary policy tool in all states of the economy, but should be co-ordinated with conventional interest rate policy
Ukrainian deputy director says economy is ‘enjoying’ deflation
Oleksandr Arseniuk says ‘low inflation environment’ – with CPI at -0.2% in January – is benefiting the Ukrainian economy
RBA minutes warn growth may wobble in 2013
Minutes suggest economy is struggling to rebalance away from mining as peak in resource investment approaches, but low inflation gives room for further rate cuts
ECB researchers suggest refinements to macro stress tests
Working paper identifies a number of factors in addition to growth that determine the rate of non-performing loans; authors say this could allow for more accurate stress testing
Bank of England confirms Bailey as deputy governor
Andrew Bailey named Bank of England deputy governor and chief executive of the Prudential Regulation Authority from April 1
Draghi backs single resolution mechanism as banking union next step
ECB chief says single resolution authority should be set up when single supervisory mechanism is in place; suggests failure to do so would leave central supervisor toothless
FSB report warns G-20 over return of market appetite for risk
Carney tells G-20 governors and finance ministers the return of risk appetite makes reforms to OTC market and shadow banking even more urgent
G-20 vows to resist entering currency wars
Commentators including Paul Krugman and Christine Lagarde reject concerns over possible currency war, as G-20 reaffirms commitment to exchange rate flexibility
BoE’s Weale warns of burgeoning inflation risk due to weak pound
Monetary Policy Committee member says further depreciation of the pound could push inflation further from its target, but the Bank of England might just have to weather the storm
ECB paper scrutinises fiscal multipliers in high-debt countries
Researchers assess impact of fiscal stimuli at different debt levels in Europe; caution that high debt levels may impair government’s ability to stimulate the economy
Lagarde welcomes G-20 commitment to avoid currency wars
IMF managing director says a more resilient financial system is a priority for the G-20, which will work to avoid ‘persistent exchange rate misalignments'
ECB researchers model systemic crises with heterogeneous interbank market
ECB working paper finds positive supply shocks feed credit booms leading to systemic banking crises
Liquidity fears temper uncleared margin proposals
Rules see two-way posting of initial margin, but apply threshold of €50 million in counterparty risk
G-20: Mexican governor warns of ‘perfect storm’ for vulnerable economies
Agustín Carstens worried about consequences of ‘massive capital flows’ into emerging markets; calls for the G-20 to regain a ‘sense of common purpose’
European recovery stalls as UK politicians warn of complacency
Latest GDP figures reveal eurozone economy contracted by 0.5% in 2012; OECD calls for wider and stronger reform efforts
Hungarian central bank accused of illegal data transfer
Rift between National Bank of Hungary and the State Audit Office widens amid accusations of ‘unlawful' communication with the IMF and poor management of banknote company
RBI sees repo market development as necessary to meet Basel liquidity rules
India central bank views repo as an increasingly important market in the wake of Basel III implementation
Norwegian governor wary of over-reliance on short-term debt
Øystein Olsen says Norway has weathered recent crises well, but points to possible vulnerabilities in the banking sector and wider economy
RBI’s Khan seeks balance between cost and safety in retail payments
Deputy governor hints that CPSS-Iosco Principles for Financial Market Infrastructures may need to be toned down in India to avoid clashing with financial inclusion programmes
Bullard slams Fed’s 2012 policy
St Louis Fed president criticises ‘relatively weak’ Federal Reserve policy in 2012, but says new measures have now stepped easing up a gear
Serbian director hints at possible easing in coming months
Head of National Bank of Serbia’s research department sees inflationary pressure easing and the Serbian economy returning to growth; says this may prompt cuts in the near future
Concern in the City over Vickers implementation
Participants at event in the City of London raise varied and numerous concerns about implementing the Vickers proposals in practice
World gold demand drops despite increased central bank purchases
Central bank purchases in 2012 reach highest level in 48 years, but Indian contraction leads global demand fall
European Commission sets out detailed Tobin tax proposal
Proposal would tax most transactions at 0.1% and derivatives at 0.01%; belt-and-braces approach to clamp down on tax avoidance draws fire from US financial lobby