Eurozone
Italian paper: Reforms could lead to earlier exit from ZLB
Working paper examines the impact of competition-friendly reforms in the service sector across the eurozone, finding it could help boost inflation providing investment responds
Greek debt deal marks start of rough road
Negotiations on Friday ended in a compromise stacked in Germany’s favour; although disaster has been temporarily averted there are more battles to come, and Greece’s funding remains tight
Greek crisis meeting gets go-ahead despite German challenge
A meeting of the Eurogroup will take place Friday after Greece yesterday sought a six-month bailout extension, but Germany has moved quickly to challenge the proposed compromise
Latest round of Greek bailout talks collapses
Discussions over extending Greece’s bailout collapsed late last night after the country's finance chief Yanis Varoufakis rejected a plan by the Eurogroup to continue with the current programme
BIS sees cross-border liquidity reverting to historical trend
Latest global liquidity indicators show low volatility combining with rapid cross-border credit growth; researchers challenge simple supply and demand theory of oil-price slump
Greenspan: Eurozone could collapse without political union
Former Fed chair Alan Greenspan says it is ‘very difficult’ to imagine the eurozone remaining intact without political union, while it is ‘just a matter of time’ before Greece departs
Danish central bank prepared to cut rates further in defence of peg
‘We haven’t yet found any absolute lower bound' for the deposit rate, Danish governor tells Central Banking, but acknowledges potential for strain on payments system
Denmark cuts deposit rate for fourth time in three weeks
Governor Lars Rohde says central bank will defend peg to euro ‘for as long as it takes', adding there is ‘no upper limit' to FX reserves as key rate is cut to -0.75%
Denmark suspends bond sales to stem FX inflows
The move, intended to lower longer-term yields and thereby discourage upwards pressure on the krone, ‘effectively works as QE' says analyst
ECB’s Cœuré calls for tougher rules on structural policy
Executive board member says a ‘strong framework’ is needed to manage the interdependence of fiscal, financial, structural and monetary policies in Europe
Carney calls on eurozone members to share fiscal burden
Bank of England governor takes stand on contentious debate, arguing ‘timidity' of European leaders who ‘do not currently foresee fiscal union as part of monetary union' is costly
Syriza reaction: Exit fears overblown but bitter struggles to come
Economists respond to Greece’s new Syriza-led coalition government with mixed feelings, but see an exit from the euro as unlikely despite the coming north-south confrontation
Mersch lays out path to capital markets union
ECB executive board member says harmonised regulation and ‘institutional adjustments’ needed in Europe; suggests change in securities markets
Eichengreen says central banks should worry more about deflation than 'profits and losses'
The Berkeley professor on what last week's SNB move says about big central banks 'wrong-footing' markets and the Fed's problematic response to financial crisis
Danish central bank cuts rates for second time this week
National Bank of Denmark lowers deposit rate for second time in four days following ECB action; central bank will defend euro peg ‘vehemently', says analyst
PBoC governor questions western central banks' ability to boost inflation
Speaking in Davos, Zhou Xiaochuan says 'monetary policy is not a panacea to reach targets', while Kenneth Rogoff says ECB QE will not be 'big enough'
Summers takes Germany to task over attitude towards debt
Speaking in London, former US treasury secretary says there is need to move beyond 'Calvinist idea' that debt is bad; questions impact of QE, macro-prudential policies
Riksbank ready to launch new measures ‘at short notice'
Swedish central bank prepared to launch unconventional measures in February, minutes reveal; board member says currency interventions inappropriate as other countries struggle
IMF paper suggests looser monetary policy to offset eurozone macro-pru policies
Staff paper examining housing markets in Denmark, Ireland, Spain and the Netherlands also proposes restricting banks' ability to pay dividends in order to absorb losses
FSB definition of shadow banking paints 'incomplete picture', warns IMF paper
US and eurozone sectors similar in size according to working paper, which says other measures fail to account for ‘non-traditional banking activities carried out by the banks themselves'
Impact of ECB unconventional policies depends on bank capitalisation, finds Belgian paper
ECB crisis measures have greater impact on GDP growth in countries where banks are well capitalised, researchers find
German investments would generate ‘beneficial' regional spillovers, finds IMF paper
The expansionary effect of higher public investment in Germany ‘substantially strengthened' when supported by an accommodative monetary policy stance, according to working paper
Banque de France paper says asset purchases may struggle to anchor rates
Working paper suggests asset purchases could be a way to anchor interbank rates, but the policy faces a number of difficulties; absorbing excess liquidity another option
Czech National Bank advises against joining ERM II in 2015
Central bank says the government should not set a target date for entry into the eurozone; raises concern over pace of economic convergence and costs of joining