Eurozone
Carney calls on eurozone members to share fiscal burden
Bank of England governor takes stand on contentious debate, arguing ‘timidity' of European leaders who ‘do not currently foresee fiscal union as part of monetary union' is costly
Syriza reaction: Exit fears overblown but bitter struggles to come
Economists respond to Greece’s new Syriza-led coalition government with mixed feelings, but see an exit from the euro as unlikely despite the coming north-south confrontation
Mersch lays out path to capital markets union
ECB executive board member says harmonised regulation and ‘institutional adjustments’ needed in Europe; suggests change in securities markets
Eichengreen says central banks should worry more about deflation than 'profits and losses'
The Berkeley professor on what last week's SNB move says about big central banks 'wrong-footing' markets and the Fed's problematic response to financial crisis
Danish central bank cuts rates for second time this week
National Bank of Denmark lowers deposit rate for second time in four days following ECB action; central bank will defend euro peg ‘vehemently', says analyst
PBoC governor questions western central banks' ability to boost inflation
Speaking in Davos, Zhou Xiaochuan says 'monetary policy is not a panacea to reach targets', while Kenneth Rogoff says ECB QE will not be 'big enough'
Summers takes Germany to task over attitude towards debt
Speaking in London, former US treasury secretary says there is need to move beyond 'Calvinist idea' that debt is bad; questions impact of QE, macro-prudential policies
Riksbank ready to launch new measures ‘at short notice'
Swedish central bank prepared to launch unconventional measures in February, minutes reveal; board member says currency interventions inappropriate as other countries struggle
IMF paper suggests looser monetary policy to offset eurozone macro-pru policies
Staff paper examining housing markets in Denmark, Ireland, Spain and the Netherlands also proposes restricting banks' ability to pay dividends in order to absorb losses
FSB definition of shadow banking paints 'incomplete picture', warns IMF paper
US and eurozone sectors similar in size according to working paper, which says other measures fail to account for ‘non-traditional banking activities carried out by the banks themselves'
Impact of ECB unconventional policies depends on bank capitalisation, finds Belgian paper
ECB crisis measures have greater impact on GDP growth in countries where banks are well capitalised, researchers find
German investments would generate ‘beneficial' regional spillovers, finds IMF paper
The expansionary effect of higher public investment in Germany ‘substantially strengthened' when supported by an accommodative monetary policy stance, according to working paper
Banque de France paper says asset purchases may struggle to anchor rates
Working paper suggests asset purchases could be a way to anchor interbank rates, but the policy faces a number of difficulties; absorbing excess liquidity another option
Czech National Bank advises against joining ERM II in 2015
Central bank says the government should not set a target date for entry into the eurozone; raises concern over pace of economic convergence and costs of joining
Basel Committee tightens securitisation standards despite bank protests
Final standards for securitisations impose tougher capital requirements despite banks’ complaints that the rules are ‘punitive’; reduces reliance on external ratings
Central Bank of Ireland urges households to spend 2.5bn copper coins on Christmas shopping
Bank warns local shops are running out of coins as people consign them to ‘jars and piggy banks'; says small change ‘better being spent or given to charity'
ECB paper uses financial conditions indices to help predict growth developments
Working paper presents indices for three industrialised and five emerging economies; authors say they are a potential leading indicator for eurozone external environment
Draghi says sovereign bond-buying is on the table and under scrutiny
ECB staff preparing plans for various unconventional policies, with sovereign bond-buying very much under consideration, president says; dismisses concerns that low rates defer government action
Spain ‘decoupled’ from other eurozone economies, says Banque de France paper
Working paper warns Spanish economy’s convergence with eurozone is ‘sluggish and incomplete’, with the sharpest decoupling beginning a year before the sovereign debt crisis
Lautenschläger highlights ‘unbelievable heterogeneity' in eurozone housing markets
ECB board member also has ‘Christmas wish list' with instruments that will complete eurozone's macro-prudential toolkit
ECB's Angeloni defines 'level playing field' for banks
If risk borne by taxpayers is higher than elsewhere, banks receive an implicit public subsidy that distorts the competitive playing field, says Ignazio Angeloni
‘Fiscal devaluation’ not enough to solve competitiveness problems, IMF paper finds
Research finds rearranging taxes to shift the burden overseas has a muted effect on output, but may be useful as part of a broader package of structural reforms
ECB enlists asset managers to carry out ABS programme
Deutsche Bank and State Street among private sector actors that will help spur credit creation in eurozone following ‘competitive' tender procedure; no fees disclosed
French paper examines impact of ECB policy changes on asset prices
Working paper considers how ‘policy shocks’ affected short-term interest rates, as well as the expected future path of short-term interest rates, between 2002 and 2013