United States
Edmund Phelps and the search for a ‘new economy’
The Nobel Prize winner helped lay the foundations of modern macroeconomics. Now he is concerned something is deeply wrong with how policy-makers think about the economy
People: January to March 2023
A round-up of central bankers in the news and on the move during the past three months
Fed raises rates 25bp and signals possible halt soon
Credit tightening may substitute for further rate hikes, Powell says
Yellen flags ‘contagious bank run’ risk
US Treasury secretary pledges small banks will gain 100% deposit insurance if needed
FedNow set to launch in July
Onboarding to instant payment system begins in April, followed by production validation
What are the systemic lessons of SVB?
Philip Turner says the collapse of SVB reveals deeper issues than many have realised
US banking collapses muddy monetary policy outlook
Bank failures raise question of whether Fed can maintain stability while tightening policy
Fed launches supervision review in wake of SVB collapse
Vice-chair for supervision says central bank needs to show “humility” after bank failure
Fed creates new liquidity backstop amid contagion fears
Valuing collateral at par marks significant break with rules on standard liquidity facilities
Crypto firms are dodging scrutiny, US comptroller warns
Hsu compares crypto exchange FTX to BCCI, subject of infamous ’90s banking scandal
Run on US bank sparks fears over interest rate risk
Major banks’ shares drop as investors reassess billions of dollars of unrealised losses
US lender tied to FTX goes into liquidation
Federal government investigating California bank linked to failed crypto exchange
Blanchard and Summers say higher inflation likely to persist
Veteran economists say structural factors are likely to push up neutral rate and inflation
Dallas Fed warns of global housing ‘slide’
US and German markets are out of touch with fundamentals, authors say
To repo or to buy? Non-bank liquidity backstops still elusive
BoE’s Hauser and Fed’s Logan flag major design challenges in building ideal market backstop
Easing supply chain pressures could bring US inflation below 4%
But authors with the New York Fed warn a further oil shock could keep inflation near 6% in 2023
Chicago Fed used search firm that employed Goolsbee’s wife
Board says it was aware of Robin Goolsbee’s employment
What is happening to US wages?
Economists disagree over causes of real wage stagnation
Young borrowers struggling with debt – New York Fed
Delinquencies are rising fast and forbearance on student loans is set to end
Agent-based models shed light on CBDC dynamics
Take-up could be as high as 25% of total money, but depends on design choices, IMF research finds
Disinflation may trigger recession, say Mester and Jefferson
Fed president and governor acknowledge policy tightening is uncertain and costly
Court rules golf tour organisers can sue Saudi sovereign fund
PGA Tour and Saudi-sponsored rival pursue dueling lawsuits in US court
Marks (and sizes and colours) of distinction
Many central banks make an effort to make cash accessible to blind and partially sighted users
Fed spurns Custodia a second time
Central bank again denies membership application from Wyoming crypto firm