Central Banks
Former Fed economists call on FOMC to dump Fed funds rate as main monetary policy tool
Joseph Gagnon and Brian Sack want the Fed to adopt the interest rate on its overnight reverse repo facility as its main policy tool and keep interest rate paid on bank reserves at same level
Draghi spells out QE possibilities
Mario Draghi says the European Central Bank could purchase banks' loans if they are packed in the ‘proper’ way, in contrast with market calls for GDP-weighted sovereign debt purchases
Central Bank of Turkey calls emergency meeting
Monetary policy committee will announce decision at midnight local time tomorrow night; expectations of rate hike see lira bounce back from record lows, but analysts remain cautious
ECB demands ‘fast adoption’ of Sepa legislation
European Commission proposal to extend the deadline for Sepa migration by six months has caused ‘confusion’ in the markets, according to the ECB
IMF research maps US shadow banks
Research uses IMF-developed global flow of funds (GFF) conceptual framework to analyse the shadow banking system in the US
Tombini says Brazil is ready for ‘welcome' exit from UMP
The end of unconventional monetary policy in advanced economies is a good sign for the world economy, says Central Bank of Brazil governor Alexandre Tombini
BoJ mulls ‘more thorough’ communication
Minutes from December meeting reveal policy board members’ concern over market scepticism towards the BoJ’s path back to 2% inflation; suggest clarifying reaction function
Argentina lifts capital controls as peso's slide continues
Argentina lifts capital controls a day after central bank quits trying to prop up the currency
Bank of England will recalibrate forward guidance next month
Governor Mark Carney tells an audience in Davos he would prefer the next stage of forward guidance not to focus solely on unemployment, but on ‘overall conditions' in the economy
Major central banks phase out dollar liquidity operations
ECB, BoE, BoJ and SNB will start scaling back the amount of dollar liquidity they offer to market participants in April in response to waning demand
Banks with more interbank relationships meet liquidity needs ‘more efficiently’, finds Bundesbank paper
Discussion paper examines the link between interbank relationships and liquidity needs, using data from German banks’ use of ECB main refinancing operations
Downside risks to Canadian inflation put central bank in a quandary
Uncertainty over inflation's next move leaves Bank of Canada waiting for more information before it decides to move rates
Colombian paper examines women in the workplace
Researchers say the large increase in the number of urban women participating in the workforce is predominantly a result of married women with low education levels getting jobs
Central Bank of Venezuela sees third president in nine months
Nelson Merentes, currently finance minister, will return to the bank, which he led for four years before leaving in April; meanwhile, the finance and ‘banking system' ministries are being merged
Solomon Islands wins IMF support for ‘contractionary’ monetary policy
Central Bank of Solomon Islands maintains tight monetary policy in face of excess liquidity; IMF welcomes stance but tells authorities to implement a wider exchange rate band
BoE's Fisher says falling unemployment needn't mean rate rises
Bank of England's monetary policy committee must plot a course between choking off the recovery and allowing inflationary pressures to rise excessively, says head of markets Paul Fisher
Swiss National Bank tightens controls on mortgage lending
Switzerland’s Federal Council approves central bank proposal to double the size of the counter-cyclical capital buffer and cool the housing market
Central Bank of Turkey sells $2.5bn in attempt to halt lira freefall
Central bank buys local currency for an estimated $2.5 billion in one day, upping stakes on strategy that has seen it spend one-third of net reserves since June
Lautenschläger nominated as SSM vice-chair
The European Central Bank has nominated Sabine Lautenschläger as the vice-chair of the supervisory board; if appointed she will join Danièle Nouy at the top of the SSM
Prices transmit information from the informed to the uniformed, say researchers
Bank of Italy working paper examines how the price system affects companies’ demand for information on the macroeconomy; contributes to business cycle theory
Cœuré wants to fast-track resolution fund
Benoît Cœuré calls for single resolution fund to be established within five years; Axel Weber predicts that some of the eurozone banks will fail the ECB’s asset-quality review
Head of the Central Bank of Nicaragua removed by decree
Alberto Guevara was transferred to a different, as yet unknown, position within the government last week; the general manager is standing in and the bank is expected to comment publicly on Friday
RBI report recommends inflation target under new monetary policy framework
Committee set up by Raghuram Rajan in September calls for formal nominal inflation target of 4% to be phased in over two years; also recommends sweeping changes to bank's organisational structure