International
Book notes: Finance and philosophy, by Alex J Pollock
A readable and useful book that provides much food for thought, and should be read widely by economists and policy-makers
Central Banking Awards 2019 – as it happened
Live blog of events at this year’s Central Banking Awards
Summers and Rachel set out fresh evidence on secular stagnation
Policy-makers may need to rethink their approach in a world of ultra-low real rates, authors say
Basel Committee clarifies ‘expectations’ on crypto
Banks must meet certain minimum standards if they want to trade crypto assets; more details on prudential expectations to follow
Experts debate regulatory support for energy-hungry technology
Blockchain requires a vast amount of energy, which could become detrimental for the planet should the technology be adopted more quickly
Non-financial firms finance the economy – BIS paper
Authors find non-financial firms act as important intermediators and take on forex risks
US corporate debt could amplify economic downturn, Kaplan says
Dallas Fed president warns about “historically high” corporate debt levels in economic letter
People: EBRD appoints new chief economist
Slovakia and Sweden reappoint board members; Spain names new director-general of services
Spanish governor de Cos now leads Basel Committee
Stefan Ingves steps down as chairman after nearly eight years in the role
EMEs have limited policy independence if open to capital flows, researchers find
Alternative policy tools can be deployed to overcome the dilemma, the authors say
Technology in reserve management: Outlook for 2019
Reserve managers look to cloud for solutions, but security issues remain
Markets still in thrall to central banks – BIS
But some apparent anomalies may be signs of healthier market function, says Claudio Borio
Central bank digital currencies need bigger incentive to succeed, researchers find
IMF paper estimates the potential demand for central bank digital currencies
BIS book outlines macro-financial policy framework
“Integrated inflation targeting” would combine policies for maximum effect, authors say
Lagarde warns against easing regulations
Further efforts are needed to address too-big-to-fail and leveraged lending, Lagarde says
Book notes: Where economics went wrong, by David Colander and Craig Freedman
Chicago economics’ gladiatorial debating style has cost the discipline dearly, the authors argue
IMF paper sets out growth-at-risk framework
Tool for assessing macro-financial conditions likely to enhance surveillance, authors say
Regulators must not be too strict in a crisis – BIS paper
Cyclical capital requirements should account for downturns as well, author argues
FSB seeks feedback on reforms’ impact on SME finance
Roundtable participants note considerable differences in how SMEs are treated across jurisdictions
Most financial stability committees lack policy tools, researchers say
Many committees lack good internal processes and ability to implement policies, authors say
Fed must account for spillovers of monetary policy – Yellen
Janet Yellen reflects on Fed monetary policy and “treacherous” currency manipulation in Brookings podcast
Central banks disagree over cash regulation
The BoE has issued legislation demanding banks supply certain denominations, but other regulators remain on the fence about how they should manage the future of cash
Lack of accurate data poses challenges for cash forecasting
Anonymity of cash makes it hard to track as a payment instrument, panel agrees
GDP needs to be supplemented with welfare measure – economist
Daniel Sichel defends GDP as a measure of production, but says it is not enough on its own