Imbalances
Which emerging markets are in the firing line?
Some instability from Turkey and Argentina has spilled elsewhere, but not all emerging markets are under threat
Book notes: China’s Great Wall of Debt, by Dinny McMahon
McMahon is too pessimistic about the chances of China managing to get its great wall of debt under control, writes Michael Taylor, but he is undoubtedly right about the scale of the challenge
SBP devalues rupee again as reserves dwindle
Two years on from its last IMF rescue package, Pakistan is again experiencing balance of payments troubles
Fed’s Brainard warns of ‘financial imbalances’
Fed board member points to risks in high asset prices and business debt
The IFF China Report 2018: The Belt and Road Initiative
China’s signature Belt and Road Initiative (BRI) now includes 71 countries, with trillions of dollars of investment allocated. Leading Chinese and international policymakers explain how BRI efforts are progressing. This section includes an inaugural…
The IFF China Report 2018: Post-financial crisis – A decade on
The Global Financial Crisis sparked Group of 20 countries to introduce tough new regulations on financial institutions and instruments. Yet the architecture of the global monetary, economic and financial system has many flaws. What lessons can China…
Denmark is entering a boom – central bank
The Nordic country is benefiting from the growth in export markets, including the US and eurozone
Algerian monetary financing may stoke inflation, warns IMF
In September 2017, Algiers resorted to central bank financing of budget deficits
SBP hikes for first time since 2013
Monetary policy committee acts to “pre-empt” the overheating of Pakistan’s economy
ECB article warns of possible effects of a Chinese slowdown
Looser Chinese monetary policy in response to problems could have significant effect
Five-year extension for Riksbank governor Ingves
Swedish governor receives additional term as opposition allegedly blocks appointment of Karolina Ekholm; first deputy also receives renewed term
Housing reform ‘will stabilise’ market – Danish central bank
The new taxation system aims to reduce price volatility by 20% and stem rising house prices in cities
How to divest public sector assets
Exit programmes for public sector assets could create uncertainty through supply/demand imbalance, but a tap facility – a private sector triggered exit programme – could be the solution, writes Hon Cheung, chief investment strategist, official…
IMF expands access to disaster funds
Economies are offered more generous thresholds for funding in the face of severe natural disasters
RBA’s Ellis examines the central banking community’s gender problem
RBA makes changes to processing candidate applications to remove unconscious bias, Ellis says; central bank recognises women face challenges when entering economics
BoE’s Forbes outlines new thinking on current account imbalances
Breaking current account into trade and financial components allows more detailed analysis of when a large imbalance is dangerous and what shocks could cause trouble
Regulation affects pass-through to current account, BoE paper finds
Discussion paper sets out theoretical and empirical backing for idea that low rates can cause a current account deficit to grow, in the presence of liberalised financial markets
Bank of Canada's Poloz says economic models 'better source of questions than answers'
Governor warns Canadian household imbalances could eventually result in 'sharp correction'; argues deflation still bigger concern than 'explosion in inflation' prompted by loose monetary policy
Bhutanese central bank warns of external imbalances
Royal Monetary Authority of Bhutan monetary policy statement outlines threats to currency peg; says long-run solution requires strengthening of macroeconomic fundamentals
SNB reports on countercyclical capital buffer implementation
Swiss National bank report clarifies the central bank’s role in the implementation of a new countercyclical capital buffer in line with Basel III
Bank of Finland predicts weaker economic outlook
Latest economic outlook edition of Bank of Finland journal forecasts slowdown in Finnish GDP; highlights risks posed by increased current account deficit
IMF working paper examines China’s current account imbalances
IMF working paper concludes that total rebalancing has not occurred in Chinese economy as domestic imbalances increase and external imbalances fall
IMF working paper suggests financial sector reform key to rebalancing Chinese economy
Reforms that lead to real interest rates rising and appreciate the real effective exchange rate would contribute to rebalancing growth in China toward private consumption, finds IMF research
IMF’s Shinohara urges emerging markets to rethink fiscal approach
Fund deputy managing director Naoyuki Shinohara says advanced economies must walk narrow path to address fiscal imbalances; emerging and developing nations should reconsider pace of adjustment