Financial crisis
Online machine learning can warn of impending crisis – Hélène Rey
Approach avoids some of the pitfalls of other methods, the economics professor says
Common asset holdings important for stress testing – BoE paper
When banks and non-banks hold the same assets, losses can be magnified, authors warn
Hélène Rey on macro-financial distortions and ‘phase 2’ of Covid-19
Economist speaks about policy distortions, debt and AI ‘early-warning’ models
Peter Praet on Europe’s Covid-19 responses
Former ECB chief economist discusses stability, negative rates, common debt and improving the EMU
Yellen calls for ‘new Dodd-Frank’
Fed prevented financial crisis in March, says former chair, as Brainard backs calls for reform
Fed’s safety nets are ‘fundamentally unsustainable’
New safety nets will allow “zombie companies” to thrive and drag down productivity, experts say
Coronavirus panic fuels a surge in cash demand
Evidence of hoarding in Australia, Brazil, Canada, the eurozone, Russia and the US
BIS warns of further shockwaves in ‘generation-defining’ crisis
Solvency crisis is looming on the horizon and health crisis is far from over, BIS officials say
Funds warm to Esma liquidity rules after Covid crisis
Funds are embracing stress-testing, and swing pricing, after “a real liquidity crisis” in March
Fed caps dividends after stress tests show big potential losses
Brainard says decision not enough as tests show loan losses could exceed those during financial crisis
Book notes: Stable banks in challenging times, by Andreas Dombret
Dombret’s stability and rule-based compass should be that for every aspiring central banker, worldwide
Podcast: Boston Fed backs community action on Covid-19 and racial inequality
Working Cities Challenge provides soft infrastructure for better policies and progressive conversations
Doyne Farmer’s next big adventure: capturing the universe
Complexity theorist plans to build an economic super-simulator on a global scale
Football stadiums to airlines: BoE reveals commercial paper holdings
Central bank has taken on exposures to a wide range of businesses – including polluters
Central banking enters a new era
‘Monetary financing’ and ‘buyer of last resort’ traps lie in wait
Georgian central bank launches liquidity support for SMEs
New programme will supply liquidity to commercial banks in exchange for loan collateral
Stress levels rising: investment funds and the Covid-19 shock
Extreme market stresses are underscoring central role non-banks play in crisis contagion
Campos Neto on reforming Brazil’s economy amid Covid-19 distress
Brazil’s governor details emergency asset purchase plans and backs extending SDR funding
Riksbank launches new financial vulnerability metric
“Systemic risk indicator” designed to track overall financial stability across market segments
The complex art of reserve management
Lockdown represents another inflection point for central banks managing $12 trillion in FX reserves
FOMC considers more aggressive forward guidance
Officials discussed state-contingent forward guidance and yield curve control, April minutes show
Swedish financial stability risks rising, Riksbank says
Without new policy measures, banks’ losses may hamper credit supply, Riksbank warns
Economists debate monetary financing of China’s government debt
PBoC adviser dismisses idea of monetising government bonds despite calls from Ministry of Finance think-tank
The ECB, the lockdown and the monetary financing lock
Eurozone’s central bank may need to break its prohibition on monetary financing to fight pandemic