Central Banks
German court dismisses challenge to ECB bond-buying
Constitutional court ends long-running challenge to asset purchase programme
Emerging markets pass capital flows test
BIS report concludes inflows are broadly positive, as improved EM institutions make them more resilient
Policymakers should consider adjusting ECB’s target – BdF paper
Lower eurozone r* points to adjustment of monetary policy strategy, researchers find
US imposes sanctions on Myanmar central bank governor
Treasury targets new slate of senior officials in military regime
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