Deutsche Bundesbank
Lack of accurate data poses challenges for cash forecasting
Anonymity of cash makes it hard to track as a payment instrument, panel agrees
Treasury systems initiative: Ion Treasury
Ion’s acquisition of Openlink in 2018 has boosted its central bank and agency clients to 65, with a new ECB contract being a ‘jewel in its crown’
Tighter US capital ratios eased inequality – Bundesbank paper
Richer households’ incomes fell while Fed’s easing cushioned effects on middle and low earners
Financial market infrastructure services: ParFX
The foreign exchange platform has pioneered a market-driven effort to tackle concerns about poor market behaviour and distrust in the $5 trillion-a-day market
Book notes: EuroTragedy, by Ashoka Mody
The former International Monetary Fund insider elegantly tells the story of the creation of the currency that has defied economics, warning that it could get “worse, much worse”
Conventional models beat machine learning in predicting crises, paper finds
Bundesbank paper contrasts performance of logit approach to machine learning
Fed’s communications may outweigh rate changes – Bundesbank paper
Researchers look at impact of Fed announcements and policy changes from 1994 to 2008
Bundesbank paper looks at effects of sanctions regimes
German banks cut activity in sanctioned countries but subsidiaries may increase lending, paper finds
Weidmann calls for dropping QE tools in normal conditions
Long-term ultra-loose policy may have shifted natural rate of unemployment – Bundesbank head
Bundesbank paper looks at secondary markets’ role in bank runs
Adding secondary markets to model significantly alters possible equilibria, authors say
People: Lagarde rules out transition to top EU jobs
IMF chief dismisses rumours linking her to upcoming changes in EU leadership positions; Bundesbank appoints executive board members; Thailand picks board member
Weidmann urges Greece to implement further reforms
Deutsche Bundesbank president recommends additional reforms and “sound” fiscal policy
Banking stress tests need more robust methods – Bundesbank paper
Current methodologies suffer from significant uncertainty, researchers say
Financial stability mandate could ‘undermine’ monetary policy – Weidmann
Bundesbank governor says putting financial stability on par with price stability would be a mistake
Bundesbank forecasts German growth will continue
Fiscal expansion will support aggregate demand in coming year, says Bundesbank
Weidmann calls for fiscal consolidation and sovereign risk reform
Bundesbank president maintains tough stance on key policy issues
Cash usage in Switzerland below eurozone average – SNB survey
SNB’s first payments study finds 70% of transactions processed in cash in 2017
Regulatory efficiency or rollback?
Team USA’s new clarion call for regulatory “efficiency” comes with a worrying undertow, particularly related to regulatory rollback and ‘light-touch’ supervision of algorithms
People: Weidmann re-elected as chair of BIS board
Korea appoints deputies; new Malaysian prime minister appoints team of economic advisers; new vice presidents in Richmond and Atlanta
Draghi renews calls for wider economic union in Europe
ECB head recommends fiscal backstop for resolution fund criticised by German policymakers
Andreas Dombret on ECB policy, deposit insurance and Basel III
The Deutsche Bundesbank executive board member speaks about exiting QE, the viability of European deposit insurance, the German banking system and doing a deal on Basel III
Bundesbank paper asks ‘how far can we forecast?’
Statistical tests imply forecasts typically become uninformative after just a few quarters
Liquidity build-ups may cause emerging market instability – Bundesbank paper
Bundesbank paper examines effects of advanced economies’ liquidity on emerging economies
Major central banks call for concerted action on climate change
“Transition risks” are the most challenging for financial institutions, Carney says