Central Banks
Don’t dismiss inflation risks but don’t overreact, say central bankers
Sbordone, Smets and Vlieghe weigh up challenges for central banks in the “return towards normal”
Most central banks accountable to legislature
Chains of accountability vary and there does not appear to be one ‘gold standard’
Cash infrastructure as public good – implications for the cash cycle
Efforts are under way in the Eurosystem to safeguard cash infrastructure as a ‘public good’ even as transaction volumes have fallen significantly. How can policy-makers strike the right balance?
Fed’s Harker warns US higher education ‘is in peril’
Philadelphia Fed president calls for reforms, as colleges face up to $115 billion in deficits
EU banks that were stress-tested reduced credit risk – ECB paper
Banks that were subject to 2016 stress tests reduced risk compared with control group, researchers find
Brainard questions Fed approval of bank merger
Fed approves PNC purchase of BBVA USA, while Brainard warns of “weakened” safeguards
Green bonds remain a challenge for reserve managers
Duration and issuance model curb investing in green market, Finland’s asset management head says
BoE paper explores liquidity traps with ‘Hank’ model
Precautionary savings can send economy into deflationary spiral, authors find
The new era of money supply and its impact on policy
The empirical relationship between money and inflation has changed, writes Manmohan Singh, with Apoorv Bhargava and Peter Stella. To understand current policy challenges, we must first understand money creation
Four in 10 central banks have legal right to be consulted on mandate changes
Most have legal restrictions on their ability to use monetary financing to fund the government
BoE recognises Ukrainian bail-in at centre of dispute
Decision likely to be seen as important endorsement of NBU’s action over scandal-hit lender
NY Fed updates Treasuries purchasing programme
New York Fed changes maturity ranges and sector weights of bond purchases
ECB rate-setters ‘broadly agree’ with loose policy
Governing council members warned financing conditions were still tighter than in December 2020
Bank of Mexico holds rates despite above-target inflation
Central bank keeps policy rate at 4% as inflation rose year on year by 6.1% in April
Myanmar suffering slow-motion bank run, reports say
Central bank struggles to supply cash and defend currency amid post-coup turmoil
Book notes: The handbook of China’s financial system, edited by Marlene Amstad, Sun Guofeng and Xiong Wei
An important, comprehensive and informed overview of the current state of the Chinese financial system
ECB officials suggest dropping market neutrality
Isabel Schnabel and Frank Elderson say climate change requires new approach to bond purchases
Danish central bank urges use of payments data in forecasts
Data provides good forecasts during normal times, but deteriorates in stressed conditions
Iran’s government orders central bank to bolster stock market
Central bank ordered to sell off $200 million in assets and lift restrictions on investing
US may not need CBDC – Boston Fed chief
Rosengren says improved payments systems may provide many CBDC uses
RBI set to launch second round of asset purchases
Indian central bank seeks to curb borrowing costs amid severe Covid-19 outbreak
The importance of diversity when selecting banknote icons
The former head of currency at the Reserve Bank of New Zealand, Brian Lang, explains why inclusion and diversity were such important factors for the country’s 1992–93 banknote redesign
Asset managers should face minimum cash levels – ECB paper
Researchers say macro-prudential measure would improve market allocation of financial resources
Fed leaders hold dovish line as CPI surges
Board members and regional presidents say inflation and employment goals still far from met