Global imbalances
Global supply chains undergoing “great reallocation”, expert says
Mexico is biggest winner from US trade shift, economist tells Atlanta Fed conference
Earth to Jackson Hole: create sustainable future bonds for stability and prosperity
Marina Zucker-Marques and Kevin Gallagher offer a template for a new central bank asset
Carstens calls for return to ‘region of stability’
Short-term thinking has led to increasingly painful trade-offs for policy, BIS chief says
IMF raises borrowing limits amid ‘challenging’ environment
Managing director calls on members to contribute more resources
IMF calls for action on fragmenting global economy
Senior officials say world is facing “confluence of calamities” and leaders have been complacent
IMF launches vehicle for SDR transfers
Fund’s aim for $45 billion in transfers seems to fall short of earlier ambitions
IMFC backs new trust to channel resources to vulnerable economies
Resilience and Sustainability Trust would offer support to a wider set of countries and could be used to share out special drawing rights
FSB relaunches global surveillance framework
New approach aims to be more systematic and reflect FSB’s “broad membership”
Authorities should consider stress-testing global supply chains – BoE paper
While global supply chains have not changed much, the shocks impacting them have, researchers say
No IMF bias towards ‘excessive austerity’, report finds
But Independent Evaluation Office says fund has been too optimistic in its forecasts
Yellen backs proposal for SDR issuance
G20 calls on IMF to develop proposal for “general allocation of SDRs”
IMF staff warn ‘exceptional’ demand for funds likely to continue
Executive directors agree to extend debt relief and higher borrowing limits, but further support relies on political backing
Detail matters when monitoring external imbalances – IMF research
Gross external debt is one of the clearest signs of vulnerability, study finds
IMF economists call for action on global imbalances
“Excessive” imbalances exist in 40% of cases, though they have narrowed slightly
Hélène Rey on macro-financial distortions and ‘phase 2’ of Covid-19
The LBS economics professor discusses monetary policy and financial exuberance, debt restructuring, and the use of machine learning to optimise ‘early-warning’ models to inform macro-prudential policy
Global property investors may undermine macro-pru – CGFS
House prices are rising and increasingly synchronised, BIS committee says
IMF confirms it has abandoned fifteenth quota reform
US thought to oppose proposals to increase emerging economies’ voting power
2019: The year in review
The past year was marked by a persistent weakening of the global economy, and some radical financial innovations
RBA considered cut at latest meeting – minutes
Case was made for monetary easing, but board opted to wait for data on previous cuts before launching further policy action
BIS authors detail new data on non-bank exposures
Banks have highly concentrated exposures to non-financial counterparties, researchers say
Central banks are ‘riders on the storm’, say Jordà and Taylor
Central banks control less than half the overall variation in interest rates, authors find