Central Banking
Bank of Korea sets up digital innovation division
Korean central bank aims to increase CBDC research and create new statistics system
UK GDP growth plunges to -20% in April
Figure is worst on record, but may be somewhat better than earlier official estimates
People: Former BoC governor Poloz joins board of energy firm
Stephen Poloz joins the board of Canadian pipeline firm Enbridge; Haldane gets third time on Bank of England MPC; Bank of Israel director general steps down; and more
Bank of Israel investigates carbon pricing
NGFS says global economy needs “green recovery” from pandemic
Mauritian central bank to use $2 billion of reserves to fund firms
Central bank will also issue debt instruments to give government $1.5 billion in new funding
Researchers say hitting lower bound has little impact on expectations
Persistent deviation from inflation target can still undermine long-term expectations, authors say
Raising inflation targets may lower neutral rate – Boston Fed paper
A higher target might therefore be less effective than current research suggests, research says
A better way to buy private sector securities?
Central bank asset purchases can do more harm than good and are often conducted on a flimsy legal basis, writes HKU’s Bryane Michael
Fed promises to keep buying assets at current rate
Fed will hold accommodation in place for “however long it takes”, chair Jerome Powell says; FOMC releases first projections this year
Balance sheets could grow by 23% of GDP in largest advanced economies – BIS
Economists forecast balance sheets will remain large for the foreseeable future
BoE’s Cunliffe: central banks must consider market liquidity backstop
Markets weathered the first phase of the Covid-19 crisis, but not without support, deputy notes
Central bankers tread carefully in move to ESG investing
Central banks must be cautious as reserves portfolios perform many roles, panellists say
Central bank museums grapple with lockdown
Money museums moved online to keep communicating during Covid-19 lockdown; some now plan to reopen for a limited number of visitors
Appetite for renewed Fed dollar swap lines in doubt
With up to $300bn of positions nearing expiry, some say FX swap market can meet banks’ funding needs
Bank of Spain paper presents ‘global weakness index’
System uses non-linear factor models to spot recessions in real time, researchers say
CBDC could endanger maturity transformation – Philadelphia Fed paper
Opening central bank balance sheet to consumers could create “deposit monopolist”, research says
ECB testing banks’ ability to deal with a second wave of Covid-19 – Enria
ECB head of supervision stresses banks are reluctant to use buffers because of market reaction
Euro carves out role as currency of choice for green finance
ECB report finds overall internationalisation of the currency was “stable” in 2019
Covid-19 must not cause ‘technological lockout’, says RBA’s Bullock
Merchants could be hit if dual pricing is unavailable for mobile payments, deputy governor says
Doyne Farmer’s next big adventure: capturing the universe
Complexity theorist plans to build an economic super-simulator on a global scale
Macro-pru policies can worsen fiscal crises – Bundesbank paper
Macro-prudential authorities must be aware of their “fiscal footprint”, researcher argues
Bank of Uganda cuts rate and warns of lasting disruption
Central bank cuts rates and narrows target band, as impact of Covid-19 in Uganda continues to play out
Cost of Mark Carney’s leaving gifts revealed
Former governor’s gifts appear small in comparison with predecessor Mervyn King, as Covid-19 prevents leaving party from occurring
Fed makes last-minute changes to ‘Main Street’ programme
Programme will be open “soon”, despite plans to launch in May