Central Banking
Ex-SEC heads look to limit Fed’s powers
An investor group chaired by two former SEC chairmen says Fed should not be granted responsibility for systemic risk
China’s reserves exceed $2 trillion
China’s foreign-exchange reserves reach a new record high
Monetary policy for small economies
Bank of Albania publishes volume on monetary-policy strategies for small economies
Korea should improve management in light of recession
Bank of Korea’s Seongtae Lee says that central bank will enhance management practices for pubic benefit
Japan extends special measures to 2010
Bank of Japan says credit easing and dollar liquidity provision will last until at least the end of this year
European Central Bank – July Monthly Bulletin
ECB calls on euro-area governments to prepare fiscal exit strategies
No need for further euroisation in Cape Verde
International Monetary Fund finds that Cape Verde’s peg to the euro suits its economy just fine
BoE’s Bean confident Treasury would agree to more QE funds
Deputy governor Charlie Bean says Bank of England would “expect” chancellor to allow more funds for quantitative easing
Trade flows continue to collapse across G7
OECD points to 13.6% drop in exports in first quarter, Japan faring particularly badly
Trichet says toxic clean-up needed
European Central Bank’s Jean-Claude Trichet says dealing with toxic assets is key to credit availability
Bank of Estonia – Annual Report 2008
Bank of Estonia’s Andres Lipstok notes the importance of euro adoption
Public-private partnerships affected by crisis
International Monetary Fund investigates the impact of the global financial crisis on public-private partnerships
Warsaw split on use of central bank profit
Poland’s politicians divided on whether central bank profits should cover budget deficit or currency risk
Central counterparties for CDS compared
Ad hoc industry group comprising both buy-side and sell-side publishes report on credit-default-swap central counterparties
Malaysia’s Zeti on international integration of Islamic finance
Bank Negara Malaysia’s Zeti Akhtar Aziz on factors important for sustaining the internationalisation of Islamic finance
UK inflation sinks below target
British price gauge falls below Bank of England’s target for first time in almost two years
MPC’s Posen queries symmetry of inflation targets
Newest member of Bank of England’s Monetary Policy Committee cites dangers in undershooting target and questions “mechanistic” monetarist view on quantitative easing
US racks up biggest ever June deficit
Gap for current financial year tops $1 trillion
Basel II enhancements released
Basel Committee on Banking Supervision announces revisions to supervisory framework and rules on trading-book capital
Forged euro notes surge by 17%
Counterfeit banknotes seized in first half of this year have face value of €19.3m
Ethiopia devalues birr
Value of Ethiopian currency falls 10% against the greenback
Economists petition lawmakers for Fed independence
Former Federal Reserve governor Frederic Mishkin among the signatories of online petition to keep monetary policy independent
Lender recourse increases the likelihood of default
Richmond Federal Reserve shows the impact of lender recourse on mortgage defaults
Estonian stability report gloomy
Bank of Estonia’s latest Financial Stability Report warns risk outlook has worsened