Economics
Philly Fed explains inventory build up prior to crisis
Philadelphia Federal Reserve study explains why prices and trade volumes increase first before collapsing in the run up to a crisis
IMF: unequal income distribution raises leverage
Fund study shows high income households’ greater bargaining power induces high leverage and financial crises
Russia advances Canadian dollar position
Bank of Russia will increase holdings of Canadian dollar denominated assets to diversify foreign exchange reserves
Bank of Canada to government: cut tax, don’t spend
Bank of Canada study shows tax cuts are better than government spending for boosting the economy
SNB’s Hildebrand on Swiss exports market
Swiss National Bank governing board chairman Philipp Hildebrand says Switzerland’s export market is picking up despite stronger swiss franc
Neglecting financial stability was Bank’s biggest mistake: FSA’s Sants
UK Financial Services Authority chief and future Bank of England deputy Hector Sants says neglect of financial stability was Bank's gravest policy error
Forrest Capie’s Bank anecdotes
William M. Clarke and Robert Pringle select some amusing excerpts from a new history of the Bank of England.
White emphasises use of Austrian school in policymaking
Bank for International Settlements former economic adviser William White says use of Austrian school assumptions about the financial system could help prevent further crises
Posen: we can’t call bubbles
Bank of England external rate-setter Adam Posen cites empirical evidence showing difficulty in distinguishing asset-price booms from busts
Norges Bank: co-op loans less salient
Norges Bank study shows salience of co-op loans leads homebuyers to take on more costly borrowing
HKMA’s Yue on offshore renminbi business in Hong Kong
Hong Kong Monetary Authority deputy chief executive Eddie Yue says development of offshore renminbi business will continue to boost Hong Kong financial services industry
What’s wrong with QE2?
Geoffrey Wood explains why he signed a letter arguing against the Federal Open Market Committee’s latest round of asset purchases
St Louis Fed: Chinese house prices have minimal effect on savings rate
St Louis Federal Reserve study says rising housing prices in China do not explain the high savings rate of households
Bundesbank: fiscal stimulus contractionary in long term
Bundesbank study shows lump sum debt financing has short-term economic benefits but long-term costs
A vision is needed of how the UK economy can be rebalanced
It is far from clear how Britain can rebalance its economy, writes Claire Jones
Academics attack QE2
Twenty-three academics call on Federal Open Market Committee to “reconsider and discontinue” QE2; signatory argues problems are as much on supply side as demand side
RBA: China’s thirst for commodities driven by global export market
Reserve Bank of Australia study says China’s demand for resources is largely driven by developments in international not domestic markets
IMF: budget responsibility laws do not guarantee improved fiscal policy
Fund study shows fiscal performance is not enhanced by institutions on budgetary responsibility
IMF to pitch in on imbalances, but no clear agreement
G20 leaders call for Fund assistance in drafting “indicative guidelines” to frame global imbalances debate but stop short of definitive statement on currency dispute
IMF: dollar volatility influences Gulf risk premia
Fund study shows US inflation and consumption drive risk premia in Gulf Cooperation Council countries
Bankers hit out at Basel III trade finance rules
Bank chief executives say tough rules on trade finance will suffocate global trade, putting growth at risk
Fed’s Warsh advocates pro-growth fiscal policy in US
Federal Reserve governor Kevin Warsh says pro-growth fiscal policy will spur long-term investment
Too soon to judge QE2: Korea's Kim
Bank of Korea governor Kim Choong-soo says Federal Reserve's second round of monetary easing cannot be prejudged; outlines challenges for domestic economy
SNB: rich nation imports deskill developing economies
Swiss National Bank says trade with richer nation depresses relative wage of skilled workers in less developed countries