Central Banking
BoJ minutes highlight concerns over shortage in nuclear energy
Bank of Japan minutes warn delay in resumption of nuclear energy plants may require more 'conservative' growth forecast
Sovereign default risks amplify supply shocks: IMF paper
Fund study incorporates sovereign default risks into a general equilibrium model
Draghi says sovereign credibility must be earned
Bank of Italy governor Mario Draghi says solvency of euro area countries must be earned by putting public finances in order
Frequency of cyclical unemployment is rising: Fed paper
Federal Reserve study shows cyclical movements in unemployment have become more persistent in recent decades
Helaba withdrawal hints at 'fundamental value' in stress test results, says analyst
German bank Helaba’s withdrawal from the European stress-testing process indicates there could be 'fundamental value' in the results, an analyst says
Greece inches closer to default status
Fitch downgrades Greece’s long-term credit rating to CCC, one notch above default, in an active week for ratings agencies
Kenya reverses rate decision
Central Bank of Kenya reverses earlier rate increase on overnight discount rate but imposes restrictions on its discount window; analysts say measures amount to tightening in monetary policy
Foreign exchange intervention less effective in open economies: IMF paper
Fund study shows the effects of foreign exchange intervention on currency is less effective the more open the economy
Boston Fed’s Rosengren clarifies state of US recovery
Boston Federal Reserve president Eric Rosengren says US recovery is not in a soft patch, but in a consistently weak state
ECB paper highlights differences in EU real wage flexibility
European Central Bank study shows real wages are more flexible in Central and Eastern European economies than euro area countries
Policymakers can mitigate post-crises unemployment effects: Turkey’s Başçı
Central Bank of Turkey governor Erdem Başçı says declines in employment during crises can be reduced by introducing policies to ease firms’ borrowing costs
Brazil holds first Financial Stability Committee meeting
First meeting held over a month later than planned; comes in same week governor addresses New York audience for the first time and discusses rising inflation
Foreign banks get temporary respite from China’s new ‘Volcker rule’
Foreign banks in China greet decision by China Banking Regulatory Commission to postpone new rules on onshore non-hedging business with relief
ECB “sidelined” in sovereign crisis debate, says analyst
Eurogroup lays out plans to provide bail-out fund with greater flexibility to address sovereign risks; analyst says message sends signal European Central Bank is being “sidelined” in discussion
State Bank of Pakistan left in dark over governor’s resignation
Reports emerge that State Bank of Pakistan governor Shahid Kardar has resigned just over a year into job; central bank staff say they are unaware of any changes
Markets respond positively as Bernanke says US is ready to act
Federal Reserve chairman Ben Bernanke says US has a “number of ways” it could ease financial conditions if necessary; markets respond postitively
Lagarde sticks with tradition and appoints American first deputy
Christine Lagarde appoints a US citizen as first deputy managing director; creates new deputy managing director position for Chinese official
Germany and China heighten cooperation
People’s Bank of China and Deutsche Bundesbank meet in Frankfurt to discuss financial stability and trade partnership; China stresses confidence in euro area
St Louis Fed paper on US monetary policy and global output gaps
St Louis Federal Reserve study says there is not sufficient empirical evidence to suggest US monetary policy should focus on global output gaps
RBI's Gokarn on new financial stability empahsis
Reserve Bank of India deputy governor Subir Gokarn says financial stability can be jeopardised in environment of price and macroeconomic stability
BoJ’s Shirakawa optimistic over post-earthquake recovery
Bank of Japan governor Masaaki Shirakawa points to further evidence that supply-side constraints are easing
Ireland appoints new deputy governor
Central Bank of Ireland makes Stefan Gerlach new deputy governor
Non-performing loans pose severe risk to advanced economies: IMF paper
Fund study finds evidence of strong link between level of non-performing loans and macroeconomic activity in advanced economies
ECB and World Bank call for exemptions from US derivatives rules
World Bank believes imposition of national regulations on multilateral development institutions is unprecedented intrusion on the internal operations of international organisations