Central Banking
People: Sarah Breeden becomes BoE’s executive director for financial stability
Senior official who has played key role in BoE’S climate initiatives will replace Alex Brazier
New York Fed announces record use of reverse repo facility
Value of transactions exceeds December peak and number of counterparties nearly doubles
Mexican board members concerned by inflation, minutes show
Bank of Mexico board held rates at 4% in spite of 6.1% year-on-year inflation in April
Former Bank of Israel governor Klein dies
Governor oversaw transition to inflation target and sometimes clashed with government
Dominican Republic’s central bank plans financial innovation hub
New technology is “indispensable tool” for financial inclusion, governor says
Riksbank starts work on CBDC with external firms
E-krona pilot project to test technical solution with Handelsbanken and TietoEVRY
RBI faces dilemma from US policy spillovers – BIS paper
Authors highlight evidence of “contractionary devaluation” when US monetary policy tightens
Chinese CBDC could bolster renminbi internationalisation – Hui Feng
Academic believes digital currency efforts could facilitate renminbi’s international acceptance and ‘popularity’
Danish central bank may tighten house lending rules
National Bank of Denmark recommends that FSA reimpose countercyclical buffers
Fed’s Quarles says time is coming for taper talk
St Louis Fed’s Bullard says it is “too early” to talk of tapering asset purchases
Diem says it will ‘fade out’ stablecoin if Fed issues CBDC
Chief economist of Facebook-backed firm says public sector has “comparative advantage”
Inequality can worsen recessions – BIS paper
But authors say there is little evidence that income inequality affects consumption in normal times
Bolivian central bank to buy local gold
Government initiative aims to prevent smuggling
Considerations for investing in emerging market debt
Luther Bryan Carter and Michael Cross delve into common considerations for central banks looking at investing in emerging market debt
ECB should adopt symmetric 2% target with AIT – US economist
Academics and former officials say ECB’s new policy framework needs to be nimble to react more quickly to inflation changes
Time series models need adapting for Covid-19 shock – ECB paper
Authors explain methods for making Phillips curves and VAR models more robust
MAS partners with financial inclusion foundation on digital currency system
Central bank officials will sit on the Mojaloop Foundation’s management boards
Bank of Korea to start CBDC trial in August
Central bank opts for two-tier model for retail digital currency
Sarb conducting feasibility study for retail CBDC
Central bank to investigate issuance of a “general-purpose” complement to cash
People: Erdoğan fires deputy governor
South Korea appoints new sovereign wealth fund chief; Fed lawyer moves to OCC; and more
Communication needs to be adapted for different audiences – RBA research
Producing information in different formats may improve success of economic communication
Leading Republican alleges Fed overreach on race
Toomey writes to regional Feds about “recent, intense interest in ‘racial justice’ activism”
Brazilian central bank publishes CBDC guidelines
Model under consideration would be intermediated by national financial system
Tunisian governor warns IMF aid is needed to stop ‘explosion’
Abassi tells lawmakers to accept tough reforms or face “Venezuelan scenario”