Financial crisis
Global financial system's future hinges on China's willingness to accept emerging India
India's emergence - and China's willingness to tolerate it - will be ‘test of survival' for the global financial system in the coming years, argues Deutsche Bank report
Dealing with ‘insidious' crises a ‘difficult proposition' for policy-makers, argues IMF paper
Conventional balance-sheet crises, however, are more effectively detected and contained than before the financial crisis, paper adds
Dutch central bank sells claims on failed Icelandic lender Landsbanki
The Netherlands Bank recovers $2.2bn it paid out to Dutch depositors of Landsbanki in 2008 as it sells last claims on failed bank's estate to Deutsche Bank
Limits to foreign lending would cut bail-out risks, Banque de France paper claims
Paper examines why countries bail each other out, and argues a tax on lending to foreign countries would stop investors betting on an implicit guarantee
New York Fed president suggests Dodd-Frank has made investors ‘more skittish'
William Dudley notes ‘extraordinary interventions' will be more difficult to undertake, potentially destabilising the financial system by unnerving investors
Stanley Fischer upbeat on US productivity potential
Fed vice-chair says productivity cycles are ‘extremely difficult to predict'; emphasises possibility that productivity will continue to rise in line with historical average
Can central bankers live up to their role as the guardians of finance?
Central bankers need to be the risk managers of the financial system to help mitigate the fallout from future crises. Those that engaged in the latest bouts of QE have not made a good start
Book notes: The Dollar Trap, by Eswar S Prasad
A lively and compelling analysis on currency wars in the wake of the financial crisis – and the likely persistence of the US dollar as the world’s pre-eminent currency
Two future paths for central banking
Andrew Haldane identifies two future worlds for central banks along with their implications for monetary policy, macro-prudential regulation, operations and transparency.
ECB economists find ‘considerable heterogeneity’ in impact of crisis
Researchers say that while borrowers ‘benefited’ from low interest rates, debt burdens increased for poor households as their incomes fell
The reorientation of central bank policy objectives
In this sponsored feature, Peter Warburton and Joanna Davies discuss how the policy challenges for central banks have been transformed in the aftermath of the global financial crisis
Financial crisis could cut long-term productivity by hitting spending on R&D
Bank of England working paper investigates the possibility that the drop in the UK's productivity since the crisis is due to the higher relative cost of investing in innovation
Finland paper: Loans-to-deposits among best indicators of banking crises
Paper examines banking crises in 11 EU countries between 1980-2013; growth rates and trend deviations of loan stock variables also yield 'useful' signals of impending crises
Fed's Lockhart 'comfortable' with rate liftoff next year
Atlanta Fed president also says weak governance was behind large number of bank failures in southeastern US following financial crisis
Mark Carney criticises 'radical belief' in capitalism
BoE governor says 'lost sense of moderation' has eroded social capital, but that central bank's financial reform efforts is a start towards more inclusive capitalism
Greater competition leads to riskier banking, ECB working paper says
Paper finds more competition led banks to resort to more securitisation, greater risk and ultimately a higher probability of being bailed out
Yellen hails Bernanke's courage in university speech
Fed chair Janet Yellen tells New York University graduating class her predecessor was brave to take ‘unprecedented' actions to fight the financial crisis
The international monetary ‘anti-system’
A network of systemic risk boards might improve stability in the absence of a viable international financial system, writes Jacques de Larosière.
Book notes: Reflections on Global Finance: Selected Essays from SSgA’s Official Institutions Group 2002–2013
Articles and essays addressed to official sector clients of State Street Global Advisors’ official institutions group (SSgA OIG).
Book notes: Fragile by Design: The Political Origins of Banking Crises and Scarce Credit
Markets for goods and labour depend vitally on the institutions that underpin them, say Charles Calomiris and Stephen Haber
Book notes: Saving the City: The Great Financial Crisis of 1914
A fascinating, brilliant and superbly researched analysis of these events and the lessons they have for us.
Albania governor says lack of European co-ordination exacerbated crisis spread
Bank of Albania governor says big European banking groups can transmit global and European shocks to small economies in south-eastern Europe
Big eurozone economies dragged each other down during eurozone crisis
Sovereign CDS in Spain and Italy showed ‘notable co-dependence' in 2009–12 and also explained much of the widening in Germany's spreads, IMF paper says
Finland's 'deep structural crisis' must be addressed, Liikanen warns
‘Decisive action’ is required to tackle a ‘deep structural crisis’, now that attention has shifted from problems in the eurozone, Liikanen writes in the Bank of Finland's 2013 annual report