Eurozone
Poland's business cycle largely a function of EU developments
According to IMF paper, eurozone developments explain 50% of Poland's output and interest rate business cycle variance, but only 25% of changes in headline inflation
IMF's Lipton says Germany faces grave risks from global 'mismanagement'
Fund's first deputy managing director pleads with European powerhouse to 'lift its sights to the global horizon as well' as it carries on the work of the European project
ECB's Cœuré urges eurozone to take lessons from Asia
Executive board member says governments' response to the Asian financial crisis, including overhaul of domestic financial sectors, made for painful adjustment but swift recovery
ECB’s Asmussen backs ‘allocative’ fiscal union
Board member ‘sees a role’ for a European fiscal union in ensuring resources are allocated efficiently; suggests other forms of centralised budgeting are less useful
Netherlands Bank says macro-prudential tools have ‘added value’ in currency union
Dutch central bank points to national and regional benefits of macro-prudential policy; says the ECB’s ability to intervene in an individual country’s policy will help counter the ‘inaction bias’ of policy-makers
Structural reforms could soften austerity blow in eurozone core, paper finds
IMF researchers use integrated monetary and fiscal model to find core eurozone countries could offset the pain of austerity through structural reforms; the periphery, however, is another matter
IMF paper finds macro-prudential policy can offset loss of monetary autonomy
Researchers build DSGE model of the eurozone to find optimal monetary and macro-prudential mix; find macro-prudential policy boosts welfare and ‘lends a hand’ to monetary policy
Commodity price shocks may unhinge eurozone inflation, ECB article says
Higher and more volatile commodity prices risk rendering conventional forecasts based on futures prices obsolete, with knock-on effects for inflation
Bank of Albania governor highlights impact of euro crisis on non-EU members
Eastern European countries that are home to branches and subsidiaries of eurozone banks fell victim to lenders' lower risk tolerance and insufficient regulatory coordination, says Ardian Fullani
BBA chair says European deposit guarantee scheme raises concerns about moral hazard
Nigel Wicks says single resolution mechanism ‘immensely complicated' and in need of treaty change while European deposit protection raises moral hazard issues; argues healthy eurozone is in UK's interest to maintain financial sector's 'critical mass'
European finance sector needs complete overhaul, says ECB's Praet
Executive board member says Europe's financial sector must be overhauled in 'its entirety' not through ‘selective mending'; warns of Japanese-style zombie banks undercutting return to growth
IMF paper says ECB can do more to fix broken transmission mechanism
Working paper identifies credit channel as a major malfunctioning component of the eurozone monetary transmission mechanism and suggests possibilities for fixing it - including asset purchases
ECB holds rates but leaves new LTRO on the table
European Central Bank governing council decides against further rate cuts in Paris, but Mario Draghi says all options remain on the table to ensure money markets remain liquid
ECB 'streamlines’ assessment of settlement systems
Eurosystem central banks will use a new framework with ‘considerable procedural simplifications’ to judge whether settlement systems are safe enough to be used in their credit operations
ECB paper says regional macro-prudential tools would mitigate eurozone imbalances
Macro-prudential tools such as loan-to-value limits could help prevent imbalances between the eurozone core and periphery if applied on a regional basis, according to ECB research
Eurozone inflation and output do move in step, says IMF working paper
Researchers argue co-movement of inflation and output is observable in the eurozone at ‘business cycle frequencies', confirming New Keynesian models to demand shocks
Draghi highlights win-win productivity gains in Berlin speech
While cost adjustments increase competitiveness only relatively, productivity gains, by increasing trend growth, can be absolute and benefit all countries, ECB president tells conference audience
Near-zero interest rates of limited help to non-financial firms
BIS quarterly review article finds that lesser pass-through is partly related to higher premium for risk required by financial intermediaries
Bank of Italy's Visco calls for full-fledged political union
Beyond banking union, the scope of a common eurozone budget - as well as the timeframe for its implementation - must be defined, says governor of Europe's fourth-largest economy
German voters want to keep the euro - but not to save it, poll finds
Two-thirds do not believe the next chancellor has mandate to support eurozone countries financially after the September 22 elections; a third supports break up of eurozone and return to deutschmark
Fall in equities most significant global impact of euro crisis, says ECB paper
Working paper measures impact of euro debt crisis on global financial markets; says the transmission ‘hinges more on trade than on finance’
Opinion: The ECB should not hold back from eurozone bond purchases
There is no danger in the ECB buying large amounts of eurozone government bonds to bolster market confidence – so long as the right conditions are met – says Natixis chief economist Patrick Artus
ECB conflicted by Cyprus bail-in
The ECB’s failure to secure a bail-out for the Cypriot banking system changes the template for sovereign rescue in the eurozone. It also has implications for a central bank that appears conflicted
ECB paper backs broader financing alternatives
Occasional paper says the ECB’s monetary polices has had an ‘uneven effect’ on eurozone businesses; calls for more diverse capital structures