Financial Stability
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
Czech’s Tuma accuses IMF, EBRD over CEE comments
Czech National Bank governor says multilateral organisations failed to differentiate between central and eastern European countries at the height of the crisis
SMEs are pulling through: ECB’s Tumpel-Gugerell
European Central Bank board member says small firms are the backbone of the euro economy and have done well in the crisis; outlines advantages of SEPA for SMEs
Riksbank – Financial Stability Report 2009:2
Sveriges Riksbank’s second report of the year finds conditions have improved, but emphases the brittle nature of financial markets’ confidence
BoJ’s special funds operation most effective for CP market
A Bank of Japan paper argues that outright purchases and repo operations were only briefly effective compared to the authority’s special funds operation
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
Bank’s Bailey links rise in banknotes with turmoil
Bank of England’s Andrew Bailey says crisis has sparked rise in demand for currency; says trend reflected in other major economies
Influences on crisis fighting in emerging markets
International Monetary Fund examines why some emerging-market economies took special-liquidity-easing measures during the crisis
Chakrabarty: mobile payments uptake low in India
Reserve Bank of India’s Kamalesh Chakrabarty says mobile banking yet to take off
Bunning labels Bernanke “definition of moral hazard”
Kentucky senator says he will do everything in his power to stop Ben Bernanke winning a second term
IMF backs HK peg weeks after bubble warning
International Monetary Fund says it supports peg; support comes after research paper cites risk of bubbles from currency strategy
Bank of England moots corporate bond sales
Bank of England proposes extension to quantitative-easing programme to cover corporate bond sales in bid to boost liquidity
BoE should keep close eye on bubbles: Dale
Bank of England’s Spencer Dale says the central bank’s current policy stance increases the likelihood that asset prices may move out of line with their fundamental values
Unconventional policy affects both sides of balance sheets
Bank of Japan looks at the size and composition of its balance sheet during its quantitative-easing period
Real economy and fiscal credibility crucial: Trichet
ECB chief says financial sector must put the real economy at the centre of its objectives, while governments have to cut spending to keep credibility
Journal of Economic Review – Riksbank
Riksbank’s third-quarter journal contains articles on the similarities between fiscal and monetary policy, and Swedish money-market premiums
North Korea drastically revalues currency
Reports say that the country has slashed two noughts off its currency; imposes a cap on exchanges into new money
RBNZ, stock exchange moot possible payments team-up
Reserve Bank of New Zealand confirms talks with NZX to collaborate on clearing and settlement system
BoE’s Posen wants housing “stabilisers” to control bubbles
Monetary Policy Committee’s Adam Posen calls for existing taxes to work as automatic stabilisers for house prices; argues against leaning against the wind with rates
Fed tiptoes further towards exit
New York Federal Reserve says it will make small-scale reverse repurchase operations in order to test strand of exit strategy
BuBa focused on cutting cash-processing costs: Fabritius
Bundesbank’s Hans Fabritius says central bank working on outsourcing cash processing
Fiscal stimulus crucial for recovery
Centre for Economic Policy Research (CEPR) compares the Great Depression with the global credit crisis
UAE backs banks as Dubai fears spark local sell-off
Commentators praise pre-emptive move on back of uncertainty in global markets following fears of Dubai World default
BoE’s Bailey: Europe to work on resolution regimes
Bank of England’s Andrew Bailey says missing piece in UK’s resolution regime is how to deal with cross-border banks