International
G-7 central banks agree CBDC principles
BIS joins with leading central banks to set out principles for deciding to issue CBDCs
Carbon tax could help monetary policy – ECB paper
But tax will only improve welfare if alternatives to carbon-based power are available, say researchers
IMF staff warn ‘exceptional’ demand for funds likely to continue
Executive directors agree to extend debt relief and higher borrowing limits, but further support relies on political backing
IEO calls for IMF to rethink house view on capital controls
Independent review says 2012 reform was helpful but still suffers from shortcomings
Global fraud framework needed as digital transactions rise – report
Covid-19 has forced consumers to trust new payment methods, but it could come at a cost
Beyond climate: addressing the ‘E’ in ESG
Environmental degradation raises fundamental questions about how central banks think about risk; efforts to expand focus beyond climate risks now under way
Global banknote developments before and after Covid-19
Antti Heinonen looks at how the pandemic triggered sharp changes in demand for cash
World faces systemic debt crisis, IMF warns
IMF calls for urgent reforms and Japanese finance minister criticises China over debt agreement
BIS’s Borio: natural rate puts central banks in ‘straitjacket’
Official urges policy-makers to take “broader view” of the costs and benefits of monetary policy
Central bank research may be biased by career concerns, paper finds
Central bankers are more likely to be promoted if they find QE is effective, study shows
BIS paper explores impact of sterilised FX interventions
Authors say economic and financial stability implications of intervention have been understudied
State regulators could lead on CFTC climate risk plans
Sympathetic rulemakers don’t need to wait for a change of federal government, say experts
Covid-19 fails to interrupt asset diversification – survey
Lower yields remain the top worry of reserve managers in 2020, study finds
Central banks must collaborate to tackle payment ‘shortcomings’, says Cœuré
Matching up disparate systems is challenging but central banks can catalyse change, BIS official says
Fed will calibrate NSFR to avoid hurting repo
Fed’s supervision head says final liquidity rule will be fast-tracked without fresh consultation
Reserve Benchmarks 2020 report – charting new data frontiers
Perspectives on staffing and salaries, reserve coverage, portfolio construction, benchmarking, use of external parties and risk management
BIS paper models credit booms and busts
Authors outline heterogeneous-agent framework that could support macro-prudential policy
Estimating the cost of a pandemic grant for the world’s poorest economies
The cost of support measures for vulnerable economies is manageable, says Steve Kamin, but political leadership may be lacking
European central banks remain leaders for gold
Average gold holdings on the continent stand at 10.6 million ounces
BIS paper delves into new fintech database
Authors investigate rise of “big tech credit” in many economies
Spread gap between green and grey bonds closing – BIS specialist
Measuring and incorporating sustainability still a challenge, says Omar Zulaica
Advanced economy central banks use more custodians
Reserve managers in advanced economies work on average with 5.6 custodians
One third of reserves staff work in front-office roles
Average reserve management team size is less than 30 employees
Moral mandates better suited to ESG adoption than financial goals – panel
Lack of liquid green bond markets limits a wider adoption of ESG investment strategies