United States
Fed releases stress test results early
Federal Reserve reveals results of latest bank stress testing two days early; finds majority of largest US banks would continue to meet expectations for capital adequacy despite large projected losses
US must get tough on China to fix imbalances, says Aliber
The US can reduce its government deficit and unemployment rate if it addresses the ‘predatory’ trading and currency policies of China and other Asian countries, says leading economist Robert Aliber
Boston Fed continues research into payments
Researcher Scott Schuh adds to 2010 research into payments; finds rising cost of debit cards reduces their use
Bank of Portugal studies synchronisation of macroeconomic fluctuations
Research paper expands on the assessment of synchronisation of macroeconomic fluctuations across countries and regions; past assessment has been crucial for the debate on economic integration
Bernanke laments 'modest' US recovery
Fed chairman describes mixed progress in US economic recovery; explains reasons for publishing statement of longer-run goals and policy strategy
Robert Aliber says the US must get tough on China
The shift to floating-rate currencies has facilitated and exaggerated the development of asset bubbles around the world, Robert Aliber tells Robert Pringle
Norges Bank governor sees ‘bright spots’ in global picture
Despite tough conditions globally, Øystein Olsen says growth in Asia and limited recovery in the US are welcome positives
Basel DVA capital deduction could cost banks billions
Billions of dollars in capital could be excluded under Basel proposals on derivatives DVA - with US banks hardest hit
US Treasury clarifies sanctions on Central Bank of Iran
US issues detailed list of frequently asked questions; says assessment of which transactions fall under sanctions will be done on case-by-case basis
SF Fed’s Williams supports buying-up mortgage-backed securities
Federal Reserve Bank of San Francisco president John Williams says restarting the Fed’s programme of purchasing mortgage-backed securities is the best way to boost the US economy
Investors were ‘fooled by search’ in US housing, says Bank of Canada paper
Bank of Canada study says search frictions in the housing market contributed significantly to the housing bubble in the US over a decade
EU vows fresh sanctions against Syrian central bank
European Union due to impose freeze on Central Bank of Syria's assets as part of efforts to strengthen sanctions against the Syrian government
The Fed’s flawed PCE inflation targeting regime
The Fed’s move to adopt inflation targeting (IT) was long expected. But economists Peter Warburton and Joanna Davies say the US central bank will be targeting inflation on its own terms
Fed's new monetary policy strategy is "flexible inflation-targeting", says Bullard
Federal Reserve Bank of St Louis president James Bullard says putting an explicit inflation target together with a sensible stabilisation policy is flexible inflation-targeting
RBA surprises markets with rate hold
Reserve Bank of Australia policy board leaves cash rate unchanged despite market expectation of 25-basis point cut in rates due to weak external outlook
Tri-party repo taskforce to disband without delivering key reform
The New York Fed's concerns about intra-day credit should be tackled by JP Morgan, BNY Mellon and DTCC, an industry taskforce concludes
Heightened uncertainty promoted precautionary savings post-crisis, says IMF paper
Fund study says precautionary motives promoted households in advanced economies to significantly increase savings following the global financial crisis
Central Bank of Iceland paper highlights limitations of inflation indexed bonds
Central Bank of Iceland study shows inflation index-linked bonds in US, UK and Iceland are unreliable measures of the real interest rate
Bernanke fears serious economic consequences from burgeoning deficit
Federal Reserve chairman Ben Bernanke warned that if the US budget was not brought under control soon, policymakers may not be able to respond to future economic shocks
Germany highly exposed to US and European contagion effects, says Buba paper
Bundesbank study finds strong contagious effects from the US and Europe, but no effects from the Asia-Pacific region and emerging markets on the German financial system
Core inflation is a poor forecaster of future price levels, says Brazilian research
Central Bank of Brazil study finds core inflation is a poor directional indicator for future headline inflation
IMF fears eurozone crisis will stall global recovery
World Economic Outlook slashes growth projections for 2012 as downside risks to eurozone economy intensify; IMF warns spill-over effects could slow economic activity globally
US housing prices strongly influenced by news, says Bank of Portugal paper
Bank of Portugal study says news shocks explain sizable fraction of variation in house prices and housing investment in the US over the past four decades