Central Banking
Philly Fed explains inventory build up prior to crisis
Philadelphia Federal Reserve study explains why prices and trade volumes increase first before collapsing in the run up to a crisis
IMF: unequal income distribution raises leverage
Fund study shows high income households’ greater bargaining power induces high leverage and financial crises
Posen reveals Bank MPC at odds over fiscal policy
Bank of England rate-setter Adam Posen talks of divide over fiscal retrenchment; accuses majority view of being “excessively political”
Budapest sets sights on Hungary’s rate-setting council
Hungarian government seeks amendment giving a parliamentary committee full control over majority of appointments to central bank’s Monetary Council
Tombini named new governor of Brazilian central bank
Central Bank of Brazil deputy governor Alexandre Tombini to replace current governor Henrique Meirelles
Russia advances Canadian dollar position
Bank of Russia will increase holdings of Canadian dollar denominated assets to diversify foreign exchange reserves
ECB’s Tumpel-Gugerell urges further reform in eurozone
European Central Bank executive board member Gertrude Tumpel-Gugerell calls for eurozone countries to avoid complacency and improve governance structures
IMF: financial innovation has spillover effects on public information
Fund study shows financial innovation reduces incentive to collect private information and increases likelihood of liquidity shocks
Bank of Canada to government: cut tax, don’t spend
Bank of Canada study shows tax cuts are better than government spending for boosting the economy
SNB’s Hildebrand on Swiss exports market
Swiss National Bank governing board chairman Philipp Hildebrand says Switzerland’s export market is picking up despite stronger swiss franc
Svensson attacks Sweden’s monetary policy framework
Riksbank deputy governor Lars Svensson finds "problem" with use of repo rate to address financial stability; favours sole focus on inflation targeting
Fed officials mooted alternative policy frameworks
Federal Open Market Committee members discussed altering monetary policy communications and targets ahead of November meeting
Meirelles to step down at the end of the year
Central Bank of Brazil governor Henrique Meirelles will leave central bank at end of year as President-elect Dilma Rousseff seeks change at central bank
De La Rue set to name new chief executive
Former Chloride president Tim Cobbold is “preferred candidate”; news comes after company says paper scandal has had “significant” impact on revenues
Norges Bank: universal banking enhances development of corporate debt markets
Norges Bank study shows that universal banking model promotes successful securitisation of corporate debt markets
Fed’s Lacker warns of elevated inflation expectations
Richmond Federal Reserve president Jeffrey Lacker says using monetary policy to address unemployment risks permanently elevating inflation expectations
Neglecting financial stability was Bank’s biggest mistake: FSA’s Sants
UK Financial Services Authority chief and future Bank of England deputy Hector Sants says neglect of financial stability was Bank's gravest policy error
Buba finds advantages in industry specialisation
Bundesbank study finds significant monitoring benefits from specialisation of cooperative and savings banks
Finland identifies source of business-cycle volatility in Hong Kong
Bank of Finland study says loan-to-value ratio and housing preference shocks are main source driving business cycle volatility in Hong Kong
RBA plans to sell scandal-hit Securency
Reserve Bank of Australia plans joint sale of polymer subsidiary following alleged bribery scandal
Merkel's EU bailout plan threatens Basel’s sovereign zero risk weights
Discussions are already under way behind closed doors, knock-on effects for bank capital could be substantial
Lord Turner: FSA break-up unnecessary
Financial Services Authority chairman Adair Turner supports Twin Peaks approach “in theory” but argues benefits could have been achieved without breaking up regulator
Ireland’s Honohan calls for greater disclosure of residential mortgages
Central Bank of Ireland governor Patrick Honohan says greater disclosure on residential mortgages loans will help drive confidence in markets
Forrest Capie’s Bank anecdotes
William M. Clarke and Robert Pringle select some amusing excerpts from a new history of the Bank of England.