Central Banks
Haldane turns to other disciplines to solve big economic questions
BoE chief economist calls for an interdisciplinary approach to tackling the problems economics faces in understanding complex systems; warns of shortcomings in micro-founded models
EBA raises concerns over banks’ implementation of IFRS 9
Profit and loss volatility likely to rise due to new credit risk guidelines, banks say
IMF praises Argentinian central bank for proposed changes to monetary policy framework
IMF encouraged by Argentina’s progress but says more effort required to strengthen monetary policy framework, including granting central bank operational independence
First BIS survey data on central clearing shows gaps remain
OTC derivatives surveys capture central clearing for first time; data reveals marked differences between classes of derivatives and advanced vs emerging economies
Egypt announces $2 billion deal to bolster reserves as Lagarde set to recommend IMF aid
IMF chief asks the board for $12 billion loan over three years to support “ambitious” reforms
Jamaica establishes foreign exchange market working group
Governor Wynter calls meeting to inform market about new group, established to formulate proposals to address the depreciation of the Jamaican dollar
Fed research proposes micro-founded approach to term structure modelling
Economists build structural New Keynesian model in contrast to the statistical approaches in much of the available literature, identifying key factors shaping term premiums
IMF lifts censure on Argentinian inflation
Inflation and GDP figures now in line with international standards, fund acknowledges; Lagarde praises Argentinian authority’s efforts to reform statistical agency
Unit root methods can help detect financial bubbles, Finnish paper argues
Researchers apply tool to data from 15 European countries
How does Janet Yellen fit into Trump’s new order?
Academics and former Fed officials think Yellen is safe for now, though the gap she could leave when her term comes to an end has some worried
Credit scoring improves borrower selection, Bank of Italy paper says
Paper presents a database on loans and the use of credit-scoring models; banks’ use of credit scoring reduces the likelihood of borrower defaulting, researchers say
RBNZ delivers rate cut as exchange rate strength persists
Board reaffirmed move in light of Trump victory, but cut has been in the offing for some time as NZ dollar strength holds down inflation
Ignazio Visco on Italian banks and why the ECB should not be made a ‘scapegoat’ for EMU fatigue
The Bank of Italy governor speaks to Chris Jeffery about resolving Italy’s NPLs, Europe’s bail-in framework, the importance of QE and why the ECB needs to stop being made a ‘scapegoat’ for EMU fatigue
National Asset-Liability Management Africa 2016 | Wellington Management | William J. Hannigan
William Hannigan on the challenges facing central banks investing in government bonds, and the current low-yield environment
Visco hits out at lack of ‘cohesion’ among Europe’s political leaders
ECB governing council member calls for targeted structural reforms in the euro area; says a euro area finance minister must have fiscal capability and not be “another referee”
Praet calls for further consolidation of eurozone banking
The ECB's chief economist says falling bank profits are not a concern for monetary policy and sector must improve business models while the central bank gives “regulatory clarity”
RBA paper finds it is hard to pinpoint US productivity slowdowns
Break in productivity growth trend in US appears to have happened in early 1970s, although beliefs took three decades to fully adjust, authors find
Riksbank’s Flodén warns QE dividends may not continue
Quantitative easing has generated profits so far, but the central bank is likely to incur losses in future, deputy governor warns; purchases amount to maturity transformation and therefore carry risk
Sarb offers insight into its macro-prudential toolkit
Central bank begins to outline macro-prudential tools needed to enforce financial stability mandate, seeking comment on appropriate instruments
EBA suggests new model for prudential regulation of investment firms
Capital model should be based on firms’ risks to markets and to customers, EBA says
India scraps two banknotes overnight
The joint initiative by the central bank and government will replace two highest denominations with a new Rs500 and Rs2000, entering circulation tomorrow after an unscheduled bank holiday
People: BIS replaces Debelle as chair of markets committee; UK advertises for Shafik replacement
MAS’s Jacqueline Loh will chair the markets committee at the Bank for International Settlements; Bank of England advertises for deputy governor role
The data deluge
Big data can help economists overcome weak theories and improve our knowledge, but it also comes with with larger pitfalls
Central banks respond as markets roiled by Trump victory
Mexico hit by large capital outflows, while Swiss and Japanese central banks face large inflows; Federal Reserve likely to come under pressure