Central Banking
Carstens warns of ‘serious consequences’ from retail CBDC
BIS chief envisages system with wholesale digital currency alongside private retail payment systems
Communication has to be two-way – ECB’s de Guindos
Communicating with markets influences behaviour, affecting signals received in return, says vice-president; ECB has created new survey of consumer expectations
Market competition fuels volatility in frail regulatory environments – Bank of Spain research
Increased instability associated with higher default rate triggers a 3.3% loss of output
Liberian central bank officials plead not guilty in court
Court sets very high bail level for senior officials as “fired” governor remains in office
RBI hands over chunk of its capital to government
Nearly $25 billion transferred to government as long-awaited Jalan report is submitted
Economists publish ‘crash course’ on euro crisis
Brunnermeier and Reis say framework is designed to help students grasp the macro-financial roots of recent crises
RBA open to unconventional policy measures – deputy governor Debelle
Quantitative easing may be on the cards if central bank cuts rates to 0.5%
Carney: digital currency could help fix global monetary system
A “synthetic hegemonic currency” could end the destabilising dominance of the dollar, BoE chief says
Powell treads cautious line in Jackson Hole remarks
Chairman gives few clues to future policy; Trump appears unimpressed with the address
ECB gives eurozone banks more time to deal with new NPLs
Leading European lawmaker welcomes relaxation in ECB’s provisioning requirements
Prices more responsive in longer buyer-seller relationships – NY Fed paper
Pass-through of exchange rate shocks could decrease during recession, research finds
No noticeable fund outflows amid protests – HKMA
Exchange Fund sufficient to back currency in case of capital outflows, HKMA says
Interbank rate uncertainty raises cost of credit – ECB paper
“Novel measure” helps authors judge effect of disruptions to interbank markets
Egypt sharply cuts rates as inflation slides
Central bank resumes easing cycle, reducing rates by 150 basis points
Summers and Stansbury warn of ‘black hole’ as central bankers debate solutions
Economists say they hope for revolutionary thinking at Jackson Hole conference – “but we are not holding our breath”
Germany issues first ever zero coupon 30-year bond
Move raises questions over how ECB will respond to tough conditions, analysts say
Estonian paper looks at Eastern European credit
Lack of competition in banking sectors is fueling pro-cyclical credit creation, researchers find
Bulgarian central bank wins court case against Omani state fund
BNB says Washington tribunal ruled it acted properly in closing down bank
Foreign banks in US made sharpest reserve cuts – Kansas Fed paper
Researchers look at impact of Fed’s quantitative tightening on US banks’ assets
AI can help predict consumer defaults – NBER paper
Researchers say “deep learning” could be useful in designing macro-prudential policies
FOMC divided over July cut, minutes show
Some FOMC members worried by effect of rate cut on US financial stability
Indonesian central bank cuts rates again
Central bank says it will boost economic growth as president pushes fiscal expansion
IMF executives vote to clear way for Georgieva
Removing age limit would open path to IMF top job for current World Bank chief executive
San Fran Fed’s Daly plays down recession fears
But there are still problems in labour market, president says in online Q&A