Europe
The long-term impact of Covid-19 on banknote demand
The coronavirus pandemic has challenged cash usage assumptions at a time when central banks make only limited use of longer-term forecasts
ECB set to boost QE purchases and extend duration of stimulus
Eurozone central bank is widely expected to increase emergency asset purchases by around €500 billion on December 10
People: New deputies named in China and Mexico
Plus ECB appoints senior supervisors, and Donald Trump tries to install new OCC chief
ECB is caught in a ‘communications trap’ – Issing
Monetary policy architect says ‘close to’ 2% inflation target was never part of original plan; urges ECB to reject Fed-like average inflation targeting
Could AI ever replace human bank supervisors?
Data collection and processing remains key in leveraging artificial intelligence
Danish central bank moves closer to Target settlement systems
National Bank of Denmark applies to use T2 RTGS system and may start using Tips
FCA details Mifid onshoring process post-Brexit
UK regulator has built equivalent systems to ensure firms can continue with Mifid reporting
The dawn of average inflation targeting
The Fed has failed to explain how it will calculate the ‘average’ for its new AIT framework, raising new risks that central bankers would do well to reflect on
Otmar Issing on the art of central bank communications
EMU architect speaks about Draghi’s “whatever it takes” intervention, forward guidance failures, the Fed’s average inflation target ‘miscommunication’, and why the ECB may be overreaching in its strategy review
Norges Bank deputy governor resigns over security clearance
Deputy governor in charge of world’s largest SWF denied clearance because of wife’s residence in China
Lane’s calls to investors stir controversy ahead of key ECB meeting
Chief economist’s private discussions with investors after policy meetings come under scrutiny
Pressure from Facebook may speed up digital euro development – panellists
ECB does not plan to announce whether it will proceed with digital euro proof of concept until mid-2021
Centralisation key to digitising central banks – ECB conference
Bank of Italy studies use of machine learning to boost supervisory capabilities
Pandemic accelerates decline in eurozone cash usage – ECB
During 2016-19 cash gradually declined as means of payment, but was still first option
Eurozone unemployment falls slightly
Unemployment falls to 8.4%, but youth joblessness is much higher at 18%
Income levels have little bearing on economics staffing
European central banks have on average more staff in statistics; non-European institutions have more research economists
Early estimate says eurozone inflation staying put
Eurostat estimates for November show core inflation also remained stable at 0.2%
ECB paper looks at cross-border macro-prudential effects
Imposing capital buffers cuts risk-taking and lending by foreign subsidiaries, researchers find
ECB’s asset buying should drop ‘market neutrality’ – Rehn
Finnish governor says ECB should adopt green principles, but Bundesbank’s Weidmann is opposed
Monetary-fiscal policy co-operation and the ‘slippery slope’
Barry Eichengreen assesses the risks central banks face from their closer links to fiscal policy
ECB sets new climate risk requirements for banks
Survey of eurozone banks shows most do not disclose basic climate-related data, ECB says
Rehn says ECB should adopt average inflation targeting
Finnish governor says current target has “asymmetric downward bias”
Olli Rehn on AIT, market neutrality and EU fiscal policies
The Bank of Finland governor talks about the ECB’s strategy review, market failure on climate change, lessons from the sovereign debt crisis, and the Draghi legacy effect on Covid-19 responses
ECB highlights new channel reinforcing sovereign-bank nexus
State guarantees indirectly increase banks’ exposure to sovereign risks through corporates