Emerging markets
EMEs have limited policy independence if open to capital flows, researchers find
Alternative policy tools can be deployed to overcome the dilemma, the authors say
BIS book outlines macro-financial policy framework
“Integrated inflation targeting” would combine policies for maximum effect, authors say
Global markets award: HSBC
HSBC’s global reach and expertise in emerging Asian markets has helped its long-term central bank clients develop more sophisticated reserve management strategies and move into new markets
Rise of renminbi prompts central banks to open Asian offices
A total of nine central banks now have offices in Asia, but New York remains city of choice
People: Nellie Liang withdraws from Fed nomination; World Bank chief resigns
Trump nominee had played a key role in setting up the Fed’s stress tests; Kim was due to leave World Bank presidency in July 2022; further appointments in UK, Vietnam and Ghana
2018: The year in review
The past year marked a return to instability, but also saw some innovations among central banks
EME banks have ‘substantially’ increased global footprint – BIS research
Study finds emerging market banks have taken a greater role as their home economies have grown
Trade tensions may reflect international system design flaws
Former PBoC governor Zhou says global system faces “grave challenges” while former EC president Barroso says current framework “is not working”
More trouble likely after ‘bumps’ in past quarter, says BIS’s Borio
Corporate debt markets are looking overstretched and could trigger problems; term spread may not be best indicator of recession, special feature finds
Google’s data tool has potential for countries with data gaps – IMF research
Authors explore how search queries can be used to track human behaviour, which could be used to map macroeconomic indicators
Lower oil prices and stronger lira send Turkey and Argentina diverging
In 2019, analysts expect inflation to drop sharply in Argentina and to bounce back in Turkey
EME central banks can counter the next downturn
Philip Turner urges central banks to consider a broad range of actions to tackle volatility stemming from currency mismatches
Turkish inflation falls for first time since March
Currency has begun recovery after reaching record lows against dollar in August
Bank of Israel to form financial stability committee
Central bank governor will chair committee aimed at co-ordinating regulators
Sponsored interview: Henri Fouda, Wellington Management
Central Banking met with Henri Fouda, portfolio manager at Wellington Management at the National Asset-Liability Management Africa 2018 conference to discuss the current outlook for fixed income investment on a global and regional basis. Fouda shares his…
Policy-makers need to tackle ‘liquidity illusion’ – Carstens
BIS chief warns asset managers may contribute to sudden withdrawals of liquidity; emerging markets should be willing to try unorthodox policies
Advanced economies suffer greater spillovers – BIS research
Study examines extent to which various central banks cause and suffer policy spillovers
Bruno and Shin investigate EM firms’ dollar vulnerabilities
BIS paper highlights negative effects of US dollar strength on emerging market firms, as figures show dollar borrowing is still on the rise
Turkish central bank on hold as lira finds support
Central bank holds main rate in first decision after September’s aggressive tightening action
Emerging market governors back targeted capital controls
Governors says capital flow measures can be important tools in some circumstances
IMF calls for fiscal consolidation in anticipation of next crisis
As global financial conditions tighten, emerging economies record higher corporate and sovereign debt
IMF cuts global growth forecasts
Likelihood of further negative shocks has risen, warns Maurice Obstfeld
Global output gap matters for inflation – BIS paper
Authors find domestic and global output gaps both important, but effects differ across economies
IMF paper explores interaction of capital controls and macro-pru
Capital controls do not “consistently” mitigate potential increases in cross-border flows