Central Banks
Book notes: Money and the rule of law, by Peter Boettke, Alexander Salter and Daniel Smith
A largely US-focused book, which hankers for more robust rules for central banks but isn’t explicit as to what kind
ECB, BoJ, BoE and SNB reduce Fed dollar liquidity operations
Seven-day operations will decrease from daily to once a week
Argentina importing banknotes amid high inflation
Curaçao picks Crane for new currency; Cuba drops visual aids from banknote
BoE’s Pill: UK must accept it’s ‘worse off’
Chief economist says declining terms of trade mean purchasing power must fall
Bahamas SDR law gets parliamentary approval
Opposition claims government wants to legalise use of IMF assets after the fact
BSP governor warns against cutting rates faster than the Fed
Medalla’s comment follows central bank’s recent move to support the peso
Most AE central banks split internal and external communications
But those in emerging market economies tend to assign the tasks to a single team
Climate change and the role for central banks
Gavin Bingham, Andrew Large and Paul Fisher explain how climate change affects central banks and the competing tensions it raises in relation to policy responses
Belize to create AML/CFT exception to central bank confidentiality
Proposed law would also require rules against conflicts of interest
Chile governor warns committee against adding mandates
Debate over central bank role continues in Chile’s second attempt at new constitution
First Republic Bank at risk of collapse after deposit flight
Shares in US bank plummet as scale of outflows becomes clear and rescue options remain obscure
UAE launches ‘t-sukuk’ to support monetary policy
Central bank continues to implement its new dirham monetary framework
Riksbank increases rates by 50bp in divided vote
Two board members preferred a 25bp rate hike while leaving open further increases
Monetary policy can matter in poor countries – IMF paper
Study suggests changes to money supply may have impact through exchange rate
Most central banks have centralised communications teams
Result broadly similar across central banks in advanced and emerging market economies
BoE’s Broadbent denies money supply is driving inflation
Deputy governor says M4 growth neither driven by QE or particularly linked to inflation
Fed triennial study shows rapid growth in electronic payments
ACH payments contributed to 90% of non-cash payment value increases in three years
Italian PM considering sovereign wealth fund
SWF would support domestic industry and rely on “enormous savings”
Higher inflation and rates will not reverse asset diversification
Most reserve managers expect diversification will continue, whether unchanged, accelerated or at a slower pace
Most communications teams outsource tasks to external providers
Outsourcing more common among central banks in emerging markets