Financial Stability
FSA’s Turner wants new macroprudential body
The UK’s top regulator Adair Turner says a body other than the Bank of England is needed to implement macroprudential supervision
A new default and credit risk model for Korea
Bank of Korea research develops a model to estimate the probability of default using new indicators such as debt-to-equity ratios that better explain behaviour
Joint fiscal stimulus does everyone good
Bank of Canada looks at the potential effect of the joint fiscal policy initiatives of the G20 in 2009 and 2010
Reshape debt to prevent future crises: Bank’s Haldane
Bank of England director Andrew Haldane points to debt-equity swaps and contingent capital as means to avoid another debt crisis; says shareholder dividends should have been saved
NY Fed misrepresented French AIG position: Tarp overseer
Tarp overseer Neil Barofsky says Commission Bancaire would have helped secure haircuts from French counterparties of American International Group; comments contradict earlier claim by New York Fed
Geithner passes buck on AIG
Treasury Secretary says he did not make the decision to pay American International Group’s biggest counterparties 100 cents on the dollar
Iceland cuts by 50 bp as króna stands ground
Unexpected reduction leaves borrowing costs at 9.5%, central bank notes Icesave debacle failed to impact króna
Bank of Canada – Business Outlook Survey (winter 09/10)
Canadian firms expected both their costs and the prices they charged to increase over this year, signalling an end to the slump in demand
Ex-governors and prominent academics in new forum
Former Argentine central bank governor Mario Blejer, former Bundesbank president Ernst Welteke and a slew of prominent academics will participate in a new forum
Schapiro seeks tighter reins on hedge-funds
US Securities and Exchange Commission’s Mary Schapiro eyes more stringent controls for hedge funds and credit rating agencies
Big fiscal spending hurts post-crisis recovery: IMF
International Monetary Fund looks at whether there is a trade-off between committing large fiscal resources and a quick recovery
BuBa’s Fabritius: monetary policy can’t stop bubbles
Bundesbank’s Hans Fabritius says monetary policy has limited capability to target asset bubbles
Obama's reforms find few friends
Markets and commentators reject the US president’s proposed reform of banks, which would see a ban imposed on proprietary trading
Great Depression spread by Germany, not US
A new paper argues that the 1931 crisis was propagated by the collapse of Germany's banking system
Mauritius’s Googoolye on macro supervision
Bank of Mauritius’s Yandraduth Googoolye says that the country’s revenue authority will share tax data with the central bank to aid policymaking
The behavior of money
A technical paper from the Central Bank of Ireland looks at how the demand for money has changed as the store of value function has gained in importance over the past 40 years.
Bank’s Tucker on shadow banking
Paul Tucker, a deputy governor at the Bank of England, set out his thoughts on the regulatory agenda for financial markets that replicate the features of core commercial banks
Back in the USSR?
Bank of Finland research finds that after 20 years of experimenting with private financial intermediation, Russia appears to be backtracking towards a state-run credit system.
Uganda’s Tumusiime-Mutebile on media relationships
Bank of Uganda’s Emmanuel Tumusiime-Mutebile says effective communication with the public is crucial for central bank’s work
ECB plans regulatory training for EU candidates
ECB says it will partner the European Commission and international organisations to strengthen supervision in countries seeking entry to the EU
Two challenges for policy in the near future
Donald Kohn, vice chairman of the Federal Reserve Board, set out his views on the Fed’s exit and the potential to include asset prices and financial stability questions in monetary policy.
Recapitalise, don’t remunerate – ECB’s Bini Smaghi
European Central Bank’s Lorenzo Bini Smaghi says banks should prepare to meet stronger demand for credit when economy improves
Wait and see on rates – MPC minutes
Bank of England’s monetary policy committee is unanimous is decisions to hold rates and the size of the quantitative easing programme
King: G20 should head IMF
Mervyn King, the governor of the Bank of England, says G20 leadership could lend the IMF the legitimacy it needs to curb economic imbalances