Bank of England (BoE)
Book notes: The other half of macroeconomics, by Richard Koo
Richard Koo questions whether central bank policy can work during a balance sheet recession, writes Graham Bannock
Carney agrees seven-month extension to term
BoE governor continues to avoid full eight-year term laid out in the central bank law; Jon Cunliffe also reappointed
‘Hyman Minsky was right’ – Don Kohn
Macro-prudential policy should mitigate crisis risks, but needs to be well communicated, says Bank of England policy-maker
Central banks could do more to tackle climate change – paper
Central banks may be mispricing assets due to climate change risk, paper argues
Carney warns no-deal Brexit would squeeze real income
Governor informs Treasury Committee of household “real income squeeze” in the event of a no-deal Brexit; Mervyn King calls government’s Brexit preparations “incompetent”
BoE study finds ‘relatable’ communications boost trust and understanding
Communications that are relatable to people’s lives work best, behavioural experiment finds
Carney signals ‘willingness’ to stay at BoE
Governor implies he is “willing” to serve another year, though decision falls to Treasury
The Bank of England’s missing records
Central banks need to implement robust archiving frameworks, should they want to maintain public trust and learn from the lessons of the past, writes former Bank of England official historian Forrest Capie
Time running out for EU Brexit temporary permissions regime
UK clearing houses may need to eject EU member positions if BoE scheme is not reciprocated by year-end
‘Stochastic lower bound’ impacts inflation – BoE paper
Assuming the lower bound is fixed might be unrealistic, authors say
Published rate path has similar effect to other communication – BIS study
Communication is important, but the “exact form” less so, according to research
Global crisis uncertainty harmed investment – BoE paper
Authors say their results offer a benchmark for possible Brexit-related uncertainty
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
Removing low-denomination coins not inflationary - BoE research
Rounding would be applied to total bill and not individual items, paper argues
People: Chinese and Turkish central banks each gain new deputy governors
Bank of England director to lead Irish central bank financial stability department; and more
Bank of England mulls synchronised settlement for new RTGS
Adding new functionality could reduce cost and risks for RTGS participants, BoE says
The battle for cyber resilience
The cyber attack on Bangladesh Bank prompted central banks around the world to change their approach and refocus on contingency planning, but are they ready now?
Podcast: David Hendry and John Muellbauer on empirical macro
The econometricians cast a sceptical eye over DSGE models and weigh up some alternatives
Non-linear mortgage features can impact policymaking – BoE paper
Non-linear features of mortgages impact policymaking in a DSGE model, the authors find
Competition strengthens banks close to insolvency – BoE paper
Competition policy’s impact on banks varies depending on the underlying health of the individual firms, BoE paper says
Sponsored forum: Putting big data into action
Central Banking convened a panel of experts to discuss how central banks and other supervisors can maximise the potential of data, while overcoming hurdles to its collection and deployment
Putting big data into action
Big data is changing the way central banks think about the economy and oversee the financial system. In a forum sponsored by BearingPoint, Central Banking convened a panel of experts to discuss the innovative ways central banks are making use of big data.
FPC better equipped for crisis than FSOC – BoE paper
Paper compares how macro-prudential regulators in UK and US would handle a 2008-style crisis
BoE mulls post-QE balance sheet policy
Central bank is “minded” to retain its floor system for setting rates, but demand for reserves is an unknown quantity