Europe
Book notes: Shutdown, by Adam Tooze
A useful, wide-ranging overview, showing how health and economic policies are intimately intertwined with geopolitics
ECB accelerates end of QE programmes
New forward guidance hints rate rise will not immediately follow end of asset purchases
Markus Brunnermeier on the need for CBDCs
The Princeton academic co-authored a paper for the European Parliament exploring the potential pitfalls of CBDCs. But they are still needed, he says
Bundesbank raises inflation forecast
Nagel calls for policy normalisation and says Bundesbank could increase risk provisioning again
Eurozone inflation reaches new record high of 5.8%
Energy inflation remains main factor boosting prices, at 31.7% in February
Sberbank Europe enters insolvency
Subsidiaries in Croatia, Slovenia and Bosnia sold off as sanctions cripple Russian lender
ECB says Sberbank Europe is close to collapse
Russian-owned bank likely to be unable to pay its debts “in the near future”, supervisors say
Commodity prices rise sharply after Russia’s invasion of Ukraine
Energy prices already account for around 50% of headline inflation in the eurozone
UK sanctions on Russia target five smaller banks
EU and US yet to announce detailed measures as expert calls possible Biden measures “weak”
Eurozone inflation may hit target in medium term, says Lane
ECB chief economist says eurozone may face fundamentally changed inflation dynamics
Sovereign bond markets test ECB’s QE withdrawal plans
Investors see “huge risks” of turmoil in peripheral eurozone debt markets
Change at the Bundesbank: from Weidmann to Nagel?
Joachim Nagel’s appointment highlights the importance of politics at the apex of German central banking. Veteran central bank watcher Klaus C Engelen looks at the media reaction and asks if Buba/ECB discord is set to continue
US core inflation much higher than eurozone’s, says ECB
Central bank points out differences in inflation dynamics across the Atlantic
European banks face increased leveraged lending risks, says Enria
SSM chair highlights cyber attacks and climate change as emerging risks to financial stability
Picking up the pieces: how to tackle the next phase of the Covid crisis
The global economy is heading into dangerous territory, writes Jagjit Chadha. Central banks must honour their commitments to price stability
Knot eyes first ECB rate hike in Q4 2022
Dutch governor expects eurozone inflation to remain over 4% for much of 2022
Navigating the digital transformation at Deutsche Bundesbank – an update
Joachim Wuermeling explains how the Covid-19 pandemic and other developments have affected the German central bank’s digital transformation during the past two years
BIS paper highlights money markets’ impact on real economy
Central bank liquidity interventions can prevent large drops in output, authors find
ECB maintains stance but Lagarde hints at hawkish policy turn
Lagarde's press conference remarks seem to differ from policy statement, analysts say
Record-high eurozone inflation raises pressure on ECB
HICP increased by 5.1%, well above consensus expectation of 4.4%, as energy prices drive up reading
Planned EU cross-border trading ban to hit most large markets
Most major jurisdictions currently provide either interdealer or client exemptions
Wunsch sceptical on forward guidance
Belgian governor says tool may be effective in a stable environment of below-target inflation
ESRB calls for European cyber incident framework
Regulators must have joint response to systemic cyber incidents
Wunsch calls for gradual ECB policy tightening
Belgian governor stresses risks posed by prolonged negative rates and QE