News
Growth of finance sucks skill from real economy, BIS paper warns
Financial growth crowds out real growth by drawing skilled labour away from other industries, with R&D hit particularly hard, a working paper by Stephen Cecchetti and Enisse Kharroubi finds
House committee calls on Fed to change leverage ratio
Segregated initial margin should be allowed to reduce exposure in cleared trades, says House Agriculture Committee in letter to Fed chair, Janet Yellen
Kalyalya replaces Gondwe as Bank of Zambia governor
Former deputy governor Denny Kalyalya replaces Michael Gondwe at the helm of the central bank, after new president decides he wants a change at the top
Cyprus central bank reviewing operational model
Central bank is commissioning a detailed study into its organisational structure to ensure it is ‘fit-for-purpose’, in light of concerns it has not ‘adequately evolved’ with the times
BoE could ease with deflation looming
Record low inflation may turn negative in the spring, inflation report shows; Mark Carney says rate cuts and QE remain options but BoE still expects next move to be a rate hike
RBA’s Debelle exerts pressure over FX benchmarks
Guy Debelle warns the likelihood of a ‘regulatory response’ on forex benchmarks will ‘substantially increase’ if FSB-approved recommendations are not met
Riksbank goes negative and launches QE
Swedish central bank announces unprecedented measures to ‘safeguard' inflation expectations; rates ‘far from lower bound' says Ingves
Justin Lin: Multiple reserve currency system ‘less stable' than one based on dollar
Former World Bank chief economist tells Central Banking Journal competing reserve currencies would not address overriding challenge of global monetary system
Dallas Fed’s Fisher calls for FOMC reform
Richard Fisher unveils a range of proposals aimed at reducing the power of the New York Fed and Board of Governors in monetary policy decisions
Central banks in CEE take different views on inflation drop
Institutions in Romania and Hungary forecast a quick return to target, while those in Poland and the Czech Republic sound a more cautious note about the inflation outlook
Japan at a turning point but liquidity risks loom, say panellists
Panel at Japan Securities Summit including BoJ’s Takehiro Sato believes Japan’s ‘certain, coordinated and creative’ policy mix will deliver the first turnaround in 20 years
Venezuela fleshes out details of new floating exchange rate
Venezuela’s central bank will introduce a new free-float exchange rate, allowing people and companies to freely buy and sell dollars; economists say it will lead to depreciation
People: Sejko confirmed as Albania governor; Vietnam names deputy
Gent Sejko confirmed in post after being nominated in December; Nguyen Kim Anh becomes sixth deputy governor at State Bank of Vietnam; and more
Kyrgyz central bank throws open library to public
Demand for rare books from scholars and students leads National Bank of the Kyrgyz Republic to open its library to the public
Central Bank of Argentina promises to allow importers access to dollars
After three days of refusing all requests for dollars from domestic companies looking to finance imports, the Central Bank of Argentina promises to start gradually opening the tap
G-20 leaders plan to scrutinise reform efforts
Leaders reaffirm commitment to reforms designed to raise global growth two percentage points and agree ‘robust monitoring framework’; OECD says reform progress has been patchy
BoJ nominee Harada: monetary stimulus, fiscal discipline
A review of Yutaka Harada’s published papers and articles reveals the Bank of Japan Policy Board nominee is likely to favour more stimulus from the central bank and less from the government
Irish central bank targets consumer-first culture
New report from the central bank reveals focus on culture within the financial industry; head of consumer protection tells Central Banking about the institution’s plans
National Bank of Angola to ‘coerce’ banks into parting with their dollars
Angola’s central bank will intervene when banks deny dollars to their customers, in the face of a shortage of foreign currency due to plunging oil prices
BIS sees cross-border liquidity reverting to historical trend
Latest global liquidity indicators show low volatility combining with rapid cross-border credit growth; researchers challenge simple supply and demand theory of oil-price slump
FOMC forward guidance adds to 'market confusion', say leading US economists
The Fed lacks 'clearly formulated' normalisation strategy, paper to be published by Central Banking argues; calls for adherence to 'disciplined inflation targeting rule'
Dallas Fed report calls for better understanding of global finance
Globalisation annual report urges monetary policy-makers to take account of global financial flows and seeks a better understanding of interdependence
Greenspan: Eurozone could collapse without political union
Former Fed chair Alan Greenspan says it is ‘very difficult’ to imagine the eurozone remaining intact without political union, while it is ‘just a matter of time’ before Greece departs
Danish central bank prepared to cut rates further in defence of peg
‘We haven’t yet found any absolute lower bound' for the deposit rate, Danish governor tells Central Banking, but acknowledges potential for strain on payments system