Articles by Central Banking Newsdesk
Bank of England considers move to polymer banknotes
UK could get polymer banknotes as soon as 2016; Bank of England launches a public consultation in a bid to win approval for the change
Bank of Mexico deputy welcomes QE taper
Manuel Sánchez singles out downshift in yield curves pushing domestic interest rates for different maturities to all-time lows as the biggest effect of lax monetary conditions on emerging economies
Dutch executive director warns banks against ‘charm offensive’
Jan Sijbrand says banks will only win back public trust by making more ‘prudent’ decision-making, and explains how the central bank has bolstered its corporate governance
Borio to take over from Cecchetti at BIS; ECB's Cœuré appointed CPSS chair
Claudio Borio promoted from deputy to head up the monetary and economic department in Basel; Benoît Cœuré, the ECB's head of payments infrastructure, to take over from Paul Tucker at CPSS
San Francisco Fed president warns asset price bubbles are ‘here to stay’
John Williams discredits economic theory on asset price movements; says bubbles are inflated predominantly by expectations of future price increases
RBNZ licenses 99 insurers as three-year deadline passes
New Zealand's 2010 Insurance Act gave insurers until this Saturday to apply for and receive a licence allowing them to continue business operations in the country
Bundesbank economists propose composite FSI with real economy predictive power
Composite financial stress indicator is better at predicting developments in the real eurozone economy than volatility indexes that are currently commonly used
Sri Lanka central bank launches liquidity support scheme
Immediate support granted to licensed financial companies facing liquidity constraints; CBSL may also call for fresh injections of shareholder capital
IMF paper says ageing populations are dampening impact of monetary policy
Working paper says monetary policy is becoming less effective in advanced economies undergoing demographic shift; calls for policy-makers to adapt
Obstfeld: Weak ex ante financial constraints prompt 'bad equilibria' in markets
Absent adequate fiscal space, financial instability will lead to price instability or sovereign default, which will further impair the functioning of financial markets
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
FOMC policy rate guidance pushes up US equity prices
Netherlands Bank research paper finds policy rate guidance also leads to significant reduction in implied volatility for US government bonds
FSB flags up financial reform concerns
Financial Stability Board reports on progress of financial reforms to G-20 leaders; details the ‘serious problems’ emerging in some areas of national policy implementation
Fed minutes ‘significantly affect’ US asset prices
New York Fed economic policy review finds that US asset price volatility increases when the Fed releases minutes from policy meetings, but less so since FOMC has become more transparent
Customers of failing banks less likely to trust other people
DNB working paper says mistrust prompted by experience of crisis increases likelihood of bank runs and undermines long-term growth
Implicit government guarantees leads to increased risk-taking at banks
Fed discussion paper argues that strengthening market discipline by reducing bank complexity is needed to address moral hazard
Riksbank holds rates as IMF sees ‘sizeable' risks at Swedish banks
Interest rates held at 1% as Swedish central bank attempts to support growth without adding to household debt stock; IMF Article IV report frets over large and vulnerable financial system
NY Fed staff say effect of policy changes depend on risk environment
New staff report argues that macro policy announcements affect asset prices to different extents depending on the existing economic outlook; when risk is elevated, the impact is reduced
Financial crisis caused significant shift in the euro area Beveridge curve
ECB paper finds that labour market consequences of the crisis have been heterogeneous across countries, with Spain and Germany diverging the most
RBI's Rajan sets out vision for ‘inclusive development'
India's new central bank governor hits the ground running, outlining several concrete policy measures ranging from a short-term forex swap window to national savings instruments
IMF paper considers impact of China’s capital account liberalisation
Researchers suggest that reduced capital control will likely lead to net outflows from equity and bond markets as domestic investors look to diversify
New York Fed paper wary of higher inflation targets
Staff report finds that pursuing a higher trend rate of inflation would likely create a ‘more volatile and unstable’ economy and unseat inflation expectations
Weidmann slams Europe's stability pact relaxation
Exceptions made for four members of the eurozone earlier this year were inappropriate, Bundesbank president says; making the rules more binding is the only way to stronger monetary union
BIS papers study effects of monetary and fiscal policy shocks
Researchers find fiscal shocks within the eurozone lead to a real exchange rate appreciation through inflation differential; monetary policy shocks have minor impact on commodity prices