Central Banks
RBA suffers payments outage after fire test
“Routine maintenance” led to loss of power at main data centre
Published rate path has similar effect to other communication – BIS study
Communication is important, but the “exact form” less so, according to research
Clarida confirmed as Fed vice-chair
US Senate approves appointment with 69 votes in favour, 26 against and four abstentions
Global crisis uncertainty harmed investment – BoE paper
Authors say their results offer a benchmark for possible Brexit-related uncertainty
Turkish lira back under pressure amid Moody’s downgrade
Central bank raises overnight borrowing limits; dwindling reserves could prove a challenge in the months ahead
Venezuelan central bank launches app to aid currency reconversion
App allows members of the public to covert prices into the new “bolivar soberano”
Banking stress tests need more robust methods – Bundesbank paper
Current methodologies suffer from significant uncertainty, researchers say
IMF paper proposes cash-based solution to zero lower bound
“Decoupling” cash from electronic money could be an alternative to QE or a higher inflation target, the authors say
Passive investing boosts some risks and cuts others – Fed paper
Authors assess four ways the surge in passive investing might impact stability
IMF authors dismiss global Phillips curve as euro inflation driver
Domestic factors largely behind “remarkably stable” inflation in eurozone
ECB asks for changes to EU’s covered bond proposals
Suggested new regime could lead to significant national differences within EU, ECB says
Powell warns not all US problems can be solved by Fed
Fed chair implicitly defends monetary policy in face of Trump’s attacks
Bank of Mexico to phase out 20-peso banknote
Central bank scraps lowest denomination; considers new 20,000 banknote as series launches
Jackson Hole: policy-makers come to defence of disruption
Poloz and Carstens highlight benefits of technological and trade disruption; monetary policy can cope with the uncertainty, Bank of Canada governor says
Reserve requirements an effective tool to balance capital flows – BIS research
Higher interest rates encourage more inflows, but adjustments in reserve requirements can strike a better balance
Haldane: market power puzzle is important for policy
Micro and macro evidence “not easily reconciled”, says BoE chief economist, but market power could have major impact on inflation