United States
Peso depreciation is ‘necessary’ – Bank of Mexico report
Mexico’s relationship with the US has made it sensitive to economic policy decisions by its major trade partner; latest report explains the central bank will prevent exchange rate “contagion”
Eurozone banks vulnerable to global risk repricing, ECB warns
US elections have “aggravated” risk of global repricing, which could trigger contagion in eurozone financial system, Vítor Constâncio says
Fed toughens rules on officials moving to private sector
Tighter rules prevent a larger number of senior supervisors from taking jobs at the institutions they have recently been overseeing
Bank of Mexico hikes following Trump election shock
Peso hit hard by Donald Trump's election victory, with possible US fiscal expansion and Fed rate hike likely to draw more capital from emerging markets, central bank says
Yellen defends Dodd-Frank and Fed independence to US Congress
Act has made a “very significant contribution” to US financial stability, Fed chair says
CCP default risks not correlated, CFTC finds
Timothy Massad: stress tests reveal “quite a bit of diversification” in CCP exposures
Central banks should sacrifice some independence – Harvard economists
A group including the UK’s Ed Balls says central banks are losing legitimacy; handing over some “political independence” could reverse the trend without damaging policy outcomes
St Louis Fed chief says election has not changed near-term outlook
Bullard hints at support for “single policy rate increase”; says changes to fiscal and regulatory regimes likely from 2017 and to immigration and trade policy in longer term
Head of Securities and Exchange Commission to step down in January
Mary Jo White says the agency has brought about “fundamental reforms”; the future direction of US financial regulation is unclear following divergent statements from Trump
Emerging markets hit harder by US rate hikes than domestic policy – Bank of Korea paper
US rate hikes have a larger impact on growth and financial flows in emerging markets than changes in domestic policy, researchers find
Bond price shaped by more than just low growth – BIS’s Caruana
Market participants may leave themselves vulnerable if they fail to recognise the importance of central bank asset purchases and market dynamics, general manager says
How does Janet Yellen fit into Trump’s new order?
Academics and former Fed officials think Yellen is safe for now, though the gap she could leave when her term comes to an end has some worried
RBA paper finds it is hard to pinpoint US productivity slowdowns
Break in productivity growth trend in US appears to have happened in early 1970s, although beliefs took three decades to fully adjust, authors find
Central banks respond as markets roiled by Trump victory
Mexico hit by large capital outflows, while Swiss and Japanese central banks face large inflows; Federal Reserve likely to come under pressure
Trump attacks Yellen in campaign ad as US votes for president
Candidate has repeatedly attacked Fed chair for “political” actions
Dallas Fed research seeks to improve real-time inflation forecasts
Economists break surveys of inflation expectations down into parts, finding stripping out the noise component improves forecasting
Fischer examines growth dilemma
Fed vice-chairman says behaviour of inflation and output as economy normalises may provide some answers
Barro and Summers wrestle with productivity puzzle
Veteran economists seek to offer explanations and policy prescriptions for strong employment and weak growth in the US and elsewhere
Regulators still searching for best approach to fintech
OCC chief says experience of other regulators is shaping US approach, but questions use of “sandboxes”; FSB’s Andresen warns of need to act early in rapidly evolving sector
Netherlands paper looks at market reaction to Fed forecasts
Implied forecasts of inflation affect market expectations, paper finds
Oil price rises and US GDP growth have ‘complex relationship’ – paper
Paper studies interaction of oil price and economic growth in US from 1875 to 2016
Bundesbank paper models spillover effects of risk shocks in financial crisis
Paper finds spillover effects of general risk are stronger than spillovers in response to bailouts
Bundesbank paper looks at financial shocks’ impact on inflation
Shocks that cause output and inflation to diverge can worsen trade-offs for central banks, paper says
Financial regulation courses should look more at liabilities – Tarullo
Fed board member suggests courses should be based around a “point of reference”