Emerging markets
Norway’s Olsen calls for shift in SWF investments towards EMEs
Norges Bank governor Øystein Olsen says decision to review investment strategy of government sovereign wealth fund is “advisable”
IMF re-examines link between exchange and inflation rates
IMF examines link between nominal exchange rate and inflation
Rebalancing of global economic policy urged: ECB’s Stark
Stark calls for “a fundamental change in economic mindset across the global economy”
Mexico buys 93 tonnes of gold
Bank of Mexico raises gold holdings by more than 93 tonnes in March; follows trend of other emerging market central banks
IMF urges emerging markets to tighten monetary policy
IMF Regional Economic Outlook for Asia report says emerging market central banks must tighten monetary policy to stave off inflation; acknowledges limitations of monetary tools
Algeria’s Laksaci warns against advanced economy risks
Bank of Algeria governor Mohammed Laksaci says sluggish growth in advanced economies is creating uncertainty over global recovery
Central bank reserve managers recoil at sovereign risk
Central Banking Publications survey finds fears over sovereign risk led reserve managers to limit or cut exposure to “peripheral” European countries; impact also felt in attitudes towards the euro
‘Disquieting developments’ in ETFs warrants attention: FSB
Financial Stability Board warns of potential issues arising from recent trends in exchange-traded funds (ETFs)
Bank’s Haldane warns capital inflows may overwhelm emerging markets
Bank of England executive director for financial stability Andrew Haldane says rapid rate of investment in emerging markets could lead to financial instability
Chile’s De Gregorio denies currency war claims
Central Bank of Chile governor José De Gregorio dismisses speculation of a currency war between advanced and emerging countries
Creditless recoveries not uncommon: IMF paper
Fund study finds creditless recoveries are common and may result from impaired financial intermediation
IMF paper on foreign credit expansion in European EMEs
Fund study finds evidence of significant increase in level of foreign credit growth in emerging European countries
ECB’s Bini Smaghi on economics’ interpretation of globalisation
European Central Bank executive board member Lorenzo Bini Smaghi calls for further studies to global growth implications of emerging market economies
FX flexibility can act as buffer to hot money: IMF’s Shinohara
IMF deputy managing director Naoyuki Shinohara encourages emerging markets to adopt more flexible exchange rates to help curb flow hot money
Investment grade status provides premium: IMF paper
Fund study shows upgrade to investment grade status leads to sharp decline in sovereign spreads
Efficient markets’ failure hamstrung central banks: CentralBanking.com panel
Reliance on efficient markets hypothesis to develop policy frameworks must be reversed, LSE’s Brandon Davies and Fathom director Danny Gabay argue
IMF’s Shinohara warns emerging markets against overheating
IMF deputy managing director Naoyuki Shinohara says pressures in emerging economies could lead to slowdown in global recovery
Sovereign funds set to enter an active phase: State Street’s Nugée
Sovereign wealth funds ready to tackle postponed investment decisions and portfolio changes having ridden out crisis with a passive management strategy
IMF’s Lipsky on measures to stem capital controls
IMF first deputy managing director John Lipsky favours use of macroeconomic policy levers to tackle emerging market capital inflows including capital controls
IMF uneasy on nagging weakness of eurozone’s banks
Fund’s Global Financial Stability Report and World Economic Outlook updates show concern over insufficiency of eurozone stress tests, links between banking and sovereign risks
Korea’s Kim promotes debate on enhancing macroprudential tools
Bank of Korea governor Kim Choongsoo encourages debate within international circles on more advanced forms of macroprudential instruments to ease emerging market risks
BoJ study identifies capital inflow feedback loop
Bank of Japan Review study says foreign exchange intervention in emerging markets may have unintended consequences on capital flows
QE2 will create jobs, Yellen tells critics
Federal Reserve vice-chair Janet Yellen says further quantitative easing will address weak labour demand and generate roughly 700,000 jobs
Inflation in emerging markets driven by exchange rates: IMF study
Fund study shows emerging market countries exhibit strong exchange rate monetary policy channels compared to more conventional channels