Articles by Central Banking Newsdesk
Form of fractional reserve banking guarantees solvency for member banks
Research paper claims joint-liability bank coalition is a welfare-improving mechanism that allows members of society to achieve better allocation of resources, making it a ‘truly superior form of banking'
SNB researchers find modified Arima model predicts inflation better
Estimating Arima models for individual CPI expenditure items and aggregating the forecasts from these models gives better results than directly applying the Arima method to the total CPI, paper finds
Monetary union leads to too much fiscal discipline, research paper finds
Paul de Grauwe and Yuemei Ji argue that sovereignty lost with the creation of the eurozone prompted dramatic effects that were largely overlooked by the currency area's designers
Romanian interest rates could fall yet further, says central bank
National Bank of Romania uses quarterly inflation report to signal it is likely to continue monetary easing, as inflationary pressures dissipate and growth remains weak
Regulators need a ‘holistic' view of the global financial system, says RBA's Debelle
RBA assistant governor Guy Debelle said that limited understanding of how financial reforms interact should not prompt regulators to ‘pick and choose' or delay their implementation
Laffer curve changes shape when government debt varies
The Laffer curve changes depending whether transfers or government debt are varied to balance the government budget constraint, Banque de France paper shows; curve looks like horizontal 'S' when debt varies
IMF reports show French and German banking sectors are key to European stability
IMF urges France to do away with tax disincentives to deposits in an effort to broaden banks' funding sources; emphasises Germany's role in forging a robust eurozone financial architecture
Low correlation between relative consumption and price not due to market inefficiency
Central Bank of Luxembourg paper attempts to explain why the correlation between real exchange rates and relative consumption is either low or negative
South African market inefficiencies keep ‘insiders happy and outsiders out'
Sarb deputy governor Francois Groepe says speedy implementation of key proposals in the National Development Plan would be a good start for spurring more inclusive growth
Kenyan central bank defends depreciating shilling
The Kenyan shilling has dropped almost 5% in value against the dollar since May; central bank insists this is a necessary rebalancing and does not pose any damaging inflationary pressures – yet
German paper proposes new method for identifying time-invariant regressors
Discussion paper says existing techniques used to identify time-invariant regressors in dynamic panel data models are ‘quite biased’ and proposes a two-stage alternative
Sarb issues new collateral requirements for committed liquidity facility
While revisions to Basel III have reduced South African banks' immediate LCR shortfall, they are still 140 billion rand short, according to the central bank
Fisher: Fed has its finger on taper trigger
Dallas Fed’s Fisher says the FOMC is nearing ‘execution mode’ on the back of improving employment figures; Philadelphia Fed’s Plosser wants ‘brighter line’ between monetary and fiscal policy
NY Fed researchers explore long-term rate rise
Ten-year Treasury yields rose ‘sharply’ between April and July; researchers attribute this to an increase in the compensation investors were demanding to hold them
Currency appreciation not just bad news for exporters
The use of cheaper imported intermediates compensates for 0.2 percentage points of a 1% currency appreciation followed by proportionate drop in export sales, Czech National Bank study shows
Adopting electronic retail payments boosts real economy, says ECB paper
Working paper says efficient electronic retail payment infrastructure boosts GDP, trade and consumption; integrating and harmonising different markets amplifies these effects
Dutch study uses neuroscience to dissect consumers’ payment choices
The Netherlands Bank uses an MRI scanner to examine what is going on in consumers’ minds as they choose whether to pay by cash or card
Zambian central bank sees currency stability but inflationary pressures through year-end
The Zambian kwacha has taken a hit against the biggest global currencies but appreciated against the South African rand, meaning REER held steady
Central Bank of Ireland director says it will take ‘some time' to get out of crisis
Fiona Muldoon adds the task now is putting together a business model for Ireland that ‘expands on parts of the economy not built on buying and selling houses to each other at ever inflated prices'
RBI governor champions ‘logically robust' financial regulation
Duvvuri Subbarao says financial markets stand out because they are not self-correcting, and because financial firms are highly leveraged and uniquely interconnected
IMF spillover report highlights tough balancing act for leading economies
Report examining international effects of policies in China, the eurozone, Japan, the UK and US, says easy monetary conditions essential but warns of future side-effects
Court decision overturns Fed cap on credit card fees
Ruling slams Fed's $0.21 cap on banks' interchange fees as too high and for running ‘completely afoul of the text, design and purpose' of legislators' intent; bank body calls on Fed to appeal
Cape Verde aims to keep euro peg credible
Maintaining the Cape Verdean escudo’s peg to the euro is the central bank’s ‘main concern’; setting policy to stabilise its international reserves and – in turn – the peg
Kuwaiti central bank details triumvirate of stress tests
Central Bank of Kuwait releases annual report; details its three-pronged approach to stress-testing the country’s banks