Financial crisis
BoE on China’s growth path
Bank of England study says China may prefer a slower path of adjustment than deficit countries to rebalance global economy
RBI’s Chakrabarty calls for more refined approach to liquidity management
Reserve Bank of India deputy governor Kamalesh Chakrabarty says more sophisticated approach to liquidity management needed to avoid market contagion
ECB opines on how euro crisis facility should work
European Central Bank proposes IMF involvement in order to ensure facility does not promote moral hazard
IMF paper on foreign credit expansion in European EMEs
Fund study finds evidence of significant increase in level of foreign credit growth in emerging European countries
NY Fed’s Krieger: liquidity backstop for shadow banks vital
New York Federal Reserve executive vice-president Sandra Krieger stresses importance of backstop measures to reduce systemic risk arising from shadow banking activities
Crisis measures assisted financially distressed firms: IMF paper
Fund study says crisis recapitalisation policies helped provide financially dependent firms access to credit
CEPR paper identifies root cause of sovereign debt crises
Centre for Economic Policy Research study finds country indebtedness, quality of governance and ability to weather shocks are determinants of sovereign debt crises
Endogenous debt crises: CEPR paper
Centre for Economic Policy Research study says reckless borrowers pose greater threat of sovereign default than poor economic growth
The value of active management for central banks
Central bank portfolio managers should not avoid risk but rather have a disciplined approach to managing it, Elisa Vilorio believes
Bank of Finland paper on boom and bust
Bank of Finland proposes model to measure financial frictions in the Finnish economy
Boom years not coming back: Bahrain’s Al Maraj
Central Bank of Bahrain governor Rasheed Mohammed Al Maraj says shareholders must recognise past boom years will not return and consolidate industries
Crisis will not push SWFs to mull long-term shift: WikiLeak
Leaked diplomatic cable shows sovereign wealth funds rushed to liquid assets in immediate aftermath of crisis, but experts did not expect long-term portfolio shift
Screening distant borrowers presents challenges: Netherlands Bank paper
Netherlands Bank study examines effectiveness of lending to distant borrowers during crises
Duke defends Fed’s liquidity measures
Federal Reserve board member Elizabeth Duke says Fed bail-out was necessary for welfare of entire economy, not just banks
Government failures aided housing bust, says FDIC’s Bair
Federal Deposit Insurance Corporation chair Sheila Bair says government-encouraged risk-taking created misaligned incentives in mortgage lending
Carry-trade inflows open to vicious circles, say Shin, Plantin
Centre for Economic Policy Research study shows interaction between capital inflows and monetary policy might destabilise carry trade
IMF paper identifies Brazilian interest rate regime switch
Fund study says Brazil’s relatively low interest rate level and lack of volatility are owing to regime changes
RBNZ’s Bollard on international and domestic risks in 2011
Reserve Bank of New Zealand governor Alan Bollard identifies key risks to New Zealand economy in 2011
Safe haven effects caused exchange rate swings: IMF paper
Fund study identifies source of exchange rate volatility during financial crisis
BoJ paper on Chinese cross-border capital flows
Bank of Japan study examines the impact of greater economic integration on cross-border flows in China; makes recommendations on policy prescriptions
Eurosystem crisis measures averted prolonged crisis: ECB paper
European Central Bank study says introduction of unconventional monetary policy measures during financial crisis successfully provided liquidity to banking system
NY Fed paper highlights discount window stigma
New York Federal Reserve study finds evidence of stigma attached to bank lending when accessing funds from discount window during crises
It's the forest stupid
Dodd Frank fails to deal with systemic risk, former chairman of the Federal Deposit Insurance Corporation William Issac argues
PBoC’s Yi promotes Chinese-EU financial co-operation
People’s Bank of China deputy governor Yi Gang promotes benefits of financial co-operation between China and the European Union