Central Banks
AI productivity shock may pull inflation up or down – BoE blog
Sectoral origin and speed of change will be key factors, economists find
Book notes: The banker who made America, by Richard Vague
This well-researched book makes a strong case that without the efforts of Thomas Willing, the US war of independence may well have been lost
Jamaica and Uruguay hold rates
Central banks cite deteriorating geopolitical tensions and extreme weather as upside inflation risks
Iran’s central bank chief says its oil exports are at zero
Governor adds that foreign reserves remain frozen as Trump vows ‘economic D-day’ against country
Sweden holds while Iceland tightens
Both Nordic central banks cite lingering inflation risk, but reach different conclusions
US Treasury doubles long-term bond purchases
Treasuries with 10–20 and 20–30-year maturities to be bought at $4 billion 'per operation'
Ghana’s gold board rejects responsibility for $1.7bn losses
Dispute follows claim by politician citing a report by IMF
Warsh called for fewer FOMC meetings in July
Minutes show committee agreeing on above-target inflation but disagreeing over AI’s effect on prices
Reconsidering the role of money in monetary policy
Euro policy architect Otmar Issing argues that central banks must improve their flawed inflation targeting frameworks
Europe’s main asset in digital race is its size, says Lagarde
ECB president says domestic barriers must be lifted so start-ups can drive innovation
Syria adopts electronic payment system
Central bank says move will eventually aid country’s reintegration into global financial system
Brian Langrin takes helm at Bank of Jamaica
Former head of financial stability succeeds Richard Byles as governor
Bitcoin has become ‘more equity-like’ – San Francisco Fed study
Asset’s ‘financialisation’ has helped it enter same sphere as stocks, paper argues
Merchants in the cash system
As policy-makers seek to protect cash acceptance and increasingly look to retailers to facilitate access to cash, Martina Horakova argues that merchants need adequate cash services themselves – and that providing cash to the public should not come at…
Europe’s stability at risk if AI bubble bursts – ECB blog
Correction could freeze functioning of continent’s financial markets, say central bank economists
Mexico sovereign bond rigging case settled in New York
Agreement appears to resolve remaining claims over banks’ alleged manipulation of sovereign debt market
Market reforms are about boosting policy transmission, says CBN
Changes brought in by Nigerian central bank enable individual investors to participate in OMOs
Tariff-induced inflation pressure begins to recede in US – study
Lower effective levies are translating into slower consumer price growth, St Louis Fed researchers say
Geopolitics is fastest-rising research topic for economists
Research economists are most widely judged on their output of papers
People: BoJ payments chief to join IMF
Plus: Australia appoints new monetary policy board member; Harrison to head comms at BoC
Sticky wages help explain depressed US sentiment – paper
Lack of salary indexation, rather than inflation, to blame for decline in sentiment, authors find