Financial crisis
Asset fire sales spread shock to emerging markets
A paper from the Centre for Economic Policy Research shows that financial shocks spread from developed to emerging economies through portfolio reallocations in the crisis
A century of financial crises in New Zealand
Recent analysis from the Reserve Bank of New Zealand suggests that improvements in policy will reduce the risk of a currency crisis going forward
Taylor-rule author blasts Bernanke’s argument
Economist John Taylor says Bernanke was wrong to argue that low interest rates were not a factor in the housing bubble that led to the financial crisis
Bernanke: low rates didn’t spur housing bubble
Federal Reserve’s Ben Bernanke says direct linkages between low federal funds rate and rise in house prices weak; fix regulation not monetary policy
BoE’s Miles calls for smaller banking sector
Bank of England’s David Miles says the enormous size of the banking sector is no longer justified
Crisis down to global imbalances: Obstfeld, Rogoff
Maurice Obstfeld and Kenneth Rogoff say global imbalances key source of crisis
Biggest exit barriers political: Buiter
Willem Buiter says main obstacles to exiting unconventional policies
Fed does not respond to oil price shocks: CEPR paper
CEPR paper argues against the standard view that Fed’s policy responses to oil-price-led inflation caused economic instability
CentralBanking.com panel: it’s too soon to exit
Charles Goodhart, Paul Mortimer-Lee, Lucrezia Reichlin and Gabriel Stein concur that dangers are greater from exiting too early than too late but warn that asset prices risk becoming over inflated
BIS on how to make stress tests better
Research examines the reasons for poor performance of stress tests pre-crisis and notes implications for their design and conduct in the future
Unconventional monetary policy reviewed
Claudio Borio and Piti Disyatat set out a framework of definitions to help categorise and clarify the functions of various monetary policy tools, and assess central banks’ actions since the crisis
Influences on crisis fighting in emerging markets
International Monetary Fund examines why some emerging-market economies took special-liquidity-easing measures during the crisis
Debt managers responded to crisis with flexibility
National Bank of Denmark’s Jens Thomsen says debt management offices better accommodate investors’ needs as a result to the crisis
Interview with Donghyun Park
Donghyun Park, a senior economist at the Asian Development Bank, discusses reserve management post-crisis and fostering demand in Asia
Fiscal stimulus crucial for recovery
Centre for Economic Policy Research (CEPR) compares the Great Depression with the global credit crisis
The relationship between money, credit and policy
A new paper finds evidence that the relationship between money and credit changed after the second world war
Bank of Canada – Autumn Review
Bank of Canada publishes the latest issue of its economic review
IIF’s Abed: financial stability a central bank task
Institute of International Finance’s George Abed says the crisis casts the role of central banks in a new light
Fed’s Kohn rejects bubble claims
Fed deputy acknowledges carry trade but dismisses fears low rates are stoking asset-price bubbles
Separating the casino from the retail bank will not work
A division between investment and retail banking will not prevent future financial crises, Clive Briault, the founder of Risk and Regulation Consulting and a former managing director at the Financial Services Authority, argues
Ex-RBI’s Reddy: roll back financial globalisation
Former governor of the Reserve Bank of India calls for creation of new Bretton Woods institution
Social contract needs a revamp
Bank of England’s Andrew Haldane finds that social contract between banks and the state needs to revised
Financial regulation needs unorthodoxy – Gopinath
Reserve Bank of India’s Shyamala Gopinath says financial regulatory framework needs to move away from orthodoxy
Interview: Heng Swee Keat
In an exclusive interview, the managing director of the Monetary Authority of Singapore discusses the impact of the financial crisis and how monetary and regulatory policies will change as a result