Central Banks
Capital markets union a la Willie Sutton
When Sutton was asked why he robbed banks, he said: “That’s where the money is.” Europe has yet to address where the capital markets union funding should come from, but there is a solution
Denmark’s exchange rate stable despite greater FDI inflows
Large international investments absorbed by krone market, central bank says
Israeli PM considers former Argentine head as possible governor
Mario Blejer met with Israeli prime minister and finance minister, local newspaper reports
Indonesian central bank hikes rates as global volatility hits rupiah
Forex interventions cut reserves by 11% between January and July 2018
Turkish central bank raises overnight rates in bid to stop lira’s fall
Move comes despite president Erdoğan’s hostility to rate hikes; banking authority also acts
Cameroon faces risks from microfinance links to banks – IMF staff
Rise of mobile banking is making microfinance sector more vulnerable, report says
Tariffs unlikely to have lasting impact on US economy – Bullard
Disruption of global supply chain could be biggest risk of trade dispute to date, says St Louis Fed president
Negative policy rates increases risk-taking by high-deposit banks - ECB paper
Eurozone banks with high deposit levels have changed lending patterns since 2014, say researchers
Trade data can detect illegal financial flows, Bank of Italy paper says
Authorities largely ignore “trade-based money laundering”, authors argue
James Bullard on 2% rates, tariffs and Fed leadership
The president of the Federal Reserve Bank of St Louis speaks about the impact of US trade policies, the disruption to the banking industry from Silicon Valley, shrinking the Fed balance sheet and the potential for agent-based modelling
Spanish banks strongly influenced by knowledge of firms, paper finds
Banks’ understanding of clients helped smooth credit contraction during financial crisis – researchers
Uganda keeps rates on hold despite rising core inflation
Policy necessary to ensure “sustainable growth”, governor says
Argentinian central bank takes drastic action over currency crisis
BCRA hikes key rate by 500 basis points and pledges major forex and debt changes
Rupee falls to record low as instability hits emerging markets
Indian currency falls to 70 against the US dollar for the first time
Central Bank of Cyprus suspends subsidiaries of two Russian banks
CBC says decision was influenced by Russian central bank’s decisions but uncertainty remains
Dealers seek FRTB carve-out for Libor transition
Swaps could be hit with capital add-on as liquidity tails off in Libor
Podcast: David Hendry and John Muellbauer on empirical macro
The econometricians cast a sceptical eye over DSGE models and weigh up some alternatives