Financial crisis
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic
Central banks react to eurozone situation
Denmark and Romania lower benchmark rates and Australia lowers growth expectations; all point to continuing eurozone uncertainty as key decision-making factor
Argentina crisis lessons for Europe: CEPR paper
Centre for Economic Policy Research study says beleaguered eurozone countries can learn from Argentina’s financial crisis
St Louis Fed paper captures effect of crisis on composition of FDI
St Louis Federal Reserve study says rise in cost of capital during financial crisis left some US industries experiencing volatile foreign direct investment flows
Greek debt value halved after marathon EU discussions
New Europe crisis resolution deal brokered overnight in Belgium; EFSF extended, Greek debt cut, banks’ capital to rise and governance increased
Europe should learn from US mistakes
Former chairman of the Federal Deposit Insurance Company William Isaac warns Europe to heed the lessons from TARP and catastrophic public stress tests
BIS paper highlights growing risk of currency crises
Bank for International Settlements paper authored by Professor Robert Aliber outlines role of cross-border money flows in a currency crisis
Liquidity risks raised crisis funding costs: Bank of Italy paper
Bank of Italy study shows heightened liquidity risk caused interbank market spreads to widen during the financial crisis
Central banks shy away from euro reserves
New data from the IMF’s currency reserves database suggests reserves accumulation has slowed during 2011 and the appetite to hold euro reserves has also waned, particularly in emerging markets
Japan extends emergency relief measures
Emergency loan facility and relaxation of collateral eligibility standards extended; sign of Japan’s continued economic struggle
Bank of Israel reviews lessons learnt from crisis
Bank of Israel report looks at evidence from recent financial crisis and how policymakers can be more prepared in future
US watchdog highlights discrepancies in Fed emergency programmes
US Government Accountability Office says Fed on occasions failed to properly document processes and decisions during crisis; says opportunities exist to strengthen risk management practices
Pressure on the IMF to make surveillance a priority
Representatives from several global constituents call on IMF to take a central role in surveillance of countries as international reforms take hold
Developing country representatives lament poor banking oversight
Intergovernmental Group Of Twenty-Four On International Monetary Affairs And Development says IMF surveillance of financial institutions is scuppered by weak implementation framework and practices
Liquidity provision focus for new international reform plan
New Centre for Economic Policy Research report puts forward reform plan; focuses on liquidity provision and calls for greater IMF powers
European Commission to consider euro bond options
European Commissioner José Manuel Barroso says options for common eurozone bond will be reviewed; Bundesbank's Jens Weidmann says bond would lead to "socialisation" of debt
Non-cash payments growth slows
World Payments Report 2011 finds slower growth in non-cash payments; key regulatory and industry initiatives are combining to gradually transform the payments landscape
Bernanke stays tight lipped on further stimulus
Ben Bernanke disappoints once again with bland speech; offers no hint of future stimulus
CNB’s Hampl: debt reduction is only solution to sovereign crisis
Czech National Bank vice-governor Mojmír Hampl, says some form of debt reduction is needed to resolve the European sovereign debt crisis
Fiscal response to crisis eased demand shock: Norges Bank paper
Norges Bank study says intervention by some governments during the financial crisis prevented a sharp drop in demand
Buba’s Dombret emphasises importance of market-economy principles
Bundesbank executive board member Andreas Dombret says recent reforms should focus more not less on market-economy principles
Bank-based economies struggle more during recoveries: IMF paper
Fund study shows bank-based economies find it more difficult than market-based economies to recover from economic crises
Former chancellor criticises BoE’s King
Alistair Darling accuses Bank of England governor of not recognising the “scale of the problem” the UK faced as the financial crisis took hold
Global financial linkages amplified US shocks: IMF paper
Fund study says close financial and trade links between Europe and US magnified effects of US housing market bubble