Financial crisis
ECB allows eurozone central banks to veto collateral
ECB says central banks in member countries can refuse bank bonds guaranteed by governments of countries involved in EU/IMF bailout programmes as collateral
UK FPC member believes drivers of risk need to change
New regulatory frameworks are positive but only changes to incentives that drive risk can prevent a future crisis, says Michael Cohrs
Reserve Bank of Australia wary of risks from European contagion
RBA Monetary Policy Committee signals ongoing concern at contagion effect from Europe dampening Australian prospects
Bank of Greece delivers policy report for ‘critical year’
Greek central bank announces bleak prediction for economy in 2012; calls on government to go above and beyond to ensure reform programme is implemented
Liikanen urges controlled and timely policy readjustments
Governor of the Bank of Finland applauds impact of emergency ECB policy steps and talks of careful unwinding of positions
BoE’s Haldane wants to see common financial language
Andrew Haldane calls for consistent language use in financial industry; says financial crisis exposed failures in information systems at many firms
Australia’s Lowe confronts the country’s changing economy
RBA deputy governor calls on Australia to make the most of the opportunities a shifting world economy offers the country
BIS study looks at financial volatility prediction
Bank for International Settlements researchers investigate the prediction of financial volatility using economic variables
Philippines economic newsletter looks at roots of financial crisis
Central Bank of the Philippines investigates international claims and cross-border lending during the global financial crisis
IMF paper analyses corporate investment in India
International Monetary Fund research paper looks into how the business environment affects corporate investment in India, which has been sluggish since the financial crisis
Fed paper studies the effect of Tarp on bank risk-taking
Discussion paper says the increase in risk-taking without an increase in lending following Tarp capital injections “is suggestive of moral hazard due to government ownership”
Dutch central bank warns on budget deficit
Netherlands Bank says “highest priority” is required for restructuring of Dutch public finances
Use of behavioural finance will not stop next crisis, says CNB adviser
The use of behavioural economics in management decisions and supervisory models would not prevent a future crisis, says Czech National Bank adviser, Michal Skořepa
EFSF gets go-ahead for collateral enhancement facility
Plan to restore worth to Greek bonds as collateral is authorised; two days after the European Central Bank was forced to stop accepting Greek bonds following downgrade
Raskin echoes Bernanke in discussing ‘modest’ recovery
Sarah Bloom Raskin talks about slow recovery compared to historical cycles and the impact of accommodative policy on savers
Bank of Canada working paper investigates market movers
New research looks into whether central bank communications or media reports impact markets more
Bernanke laments 'modest' US recovery
Fed chairman describes mixed progress in US economic recovery; explains reasons for publishing statement of longer-run goals and policy strategy
ECB rejects Greek bonds in reaction to rating cut
European Central Bank temporarily stops accepting Greek debt as collateral; move comes one day after rating agency drops country to a selective default rating
Praet discusses lessons from the crisis
ECB executive board member says speed at which imbalances result in systemic risks is a major lesson to learn; talks of emerging new Europe
Buba’s Weidmann defends German role in eurozone rescues
President of the Deutsche Bundesbank says criticising German authorities for their action, or lack of it, in helping struggling eurozone counterparts is “quite inappropriate”
De Larosière fears another crippling credit crunch in Europe
New international banking regulations aimed at cleaning up the financial system could cause a crippling credit crunch in Europe, says Jacques de Larosière
Philippines reveals extent of lending to IMF
Central Bank of the Philippines announces shift in relationship with International Monetary Fund; holdings from the country have been used to support Ireland, Portugal and Greece
RBA retains scope for monetary easing
Minutes of the latest Monetary Policy Board meeting at the Reserve Bank of Australia shows members believe inflation outlook provides scope for a further easing of policy if situation worsens
Macro-prudential powers are no panacea
Central banks will take on substantial new macro-prudential supervisory powers in the years ahead. But this is a dangerous experiment, and a step in the wrong direction