Central Banking
DNB paper says eurozone investment-saving curve flatter in recent years
Persistently low interest rates in eurozone appear to have weakened monetary policy – researchers
US needs aggressive fiscal policy and negative rates – St Louis Fed economist
Policy response must be powerful enough to overshoot previous growth trend for a period, researcher says
Georgian central bank launches liquidity support for SMEs
New programme will supply liquidity to commercial banks in exchange for loan collateral
IMF gives Chile access to $24 billion credit line
Country is exposed to major risks from pandemic despite strong economic record, Georgieva says
Bond purchases will not imperil independence – Brazilian governor
Roberto Campos Neto stresses temporary asset purchases face strict limits
BoE paper explores global financial cycles since 1880
Cycles in credit and housing have become more pronounced, but only for some economies
MAS launches framework to promote responsible AI
MAS to work with banks to fight potential biases introduced by AI tools
Minutes highlight scale of BoE’s Covid-19 redeployment
Some staff were overwhelmed with work while others had little to do
What would yield curve control mean for Fed’s asset purchases?
Policy may imply shift in rationale from crisis to recovery, and potentially more volatility in purchases
IMF staff: Argentina’s debt restructuring plan could restore sustainability
Staff give positive assessment but say there are major risks
RBA’s Lowe says fiscal policy must do more in the future
Governor says nations can no longer depend on monetary policy to keep inflation under control
Bangladeshi governor’s term extended amid pandemic crisis
IMF approves aid worth 50% of Bangladesh’s quota and says country faces major challenges
Colombia cuts rates to record low
On-target inflation allows central bank to provide stimulus as economy faces sharp recession
Fed lifts lid on ETF purchases
Biggest holding is of a BlackRock ETF, the same firm managing the purchases
Time for mandatory climate disclosures is now – Carney
Former BoE chief says Covid-19 provides an opportunity to introduce comprehensive disclosures, as RBNZ governor says any delay could disrupt economic prosperity and social cohesion
US disinflation accelerated in April
Core inflation sees steepest drop since the 9/11 attacks
Sama injects $13 billion as banks prepare to reopen
Saudi central bank directs financial firms to “gradually return” to normal operations
Nigeria slashes rates by 100bp
Central bank thinks stimulus package can still prevent the economy from entering recession
Carstens, Jordan, Weber: respect the boundaries of fiscal and monetary policy
Axel Weber says huge US deficit could pose problems for global financial stability
Norges Bank signs working agreement with Nicolai Tangen
Tangen’s appointment as SWF chief had been questioned due to his relationship with his predecessor
Riksbank launches new financial vulnerability metric
“Systemic risk indicator” is designed to track overall financial stability across market segments
Bank Indonesia criticised after direct purchase of government debt
World Bank economist warns primary market purchases could undermine confidence
Fed could exploit helicopter money with digital currency system – former officials
Simon Potter and Julia Coronado propose recession insurance bonds, consumer QE and Fed-backed digital currency as crisis tools
Fed can boost power of fiscal spending in communities – Harker and Rajan
Targeted fiscal policies are needed to address concerns over inequality, they say