Trade
BIS expands innovation hub network
Several new locations unveiled in Europe and North America
Research looks at possible East Asian trade deals
US and China stand to be worst off if trade war continues, Peterson Institute researchers find
IMF outlook worsens as pandemic intensifies
Fund warns of medium-term challenges for fiscal consolidation and trade
High US inflation should not be ruled out
A prolonged health crisis raises the risk that supply-side factors, monetary expansion and rising personal savings could stoke hidden inflationary pressures
Covid-19 may accelerate US firms’ turn away from China – New York Fed
Import data shows firms have used non-Chinese suppliers to replace some lost trade
Scale of Covid-19 impact shows up starkly in US stats
All of the US’s key macroeconomic indicators point to a dramatic slump
Debts, deficits, central banks and inflation
Forrest Capie and Geoffrey Wood ask what insights history can provide for central banks and governments managing abrupt, large increases in debt
Is SDR issuance the best way to support low-income economies?
Economists and policy-makers are increasingly discussing the option as a way to boost liquidity in the fight against Covid-19
Trump’s NAFTA replacement could harm car production – Dallas Fed research
Authors say Mexico could face biggest loss from USMCA deal
The Belt and Road Initiative 2020 Survey – A more sustainable road to growth?
The third annual Belt and Road Initiative (BRI) survey reveals that central banks view BRI investment as sustainable compared with other forms of external debt, particularly given it is often proportionally less significant. Despite growing global trade…
El-Erian on Covid-19 policy risks, ‘zombie’ markets and central bank capture
Former Pimco chief says Fed move into high yield is a step too far, new rules needed on leverage and false liquidity, and narrow window emerges for central banks to shed some of their policy load
Kosovan central bank rolling out response to coronavirus shock
Governor Fehmi Mehmeti says economy is vulnerable but the central bank is taking action
Debelle: regulation could be ‘helpful’ to FX code
As EU weighs regulation of spot market, GFXC chair dismisses key industry argument
RBNZ reduces rates by 75bp in emergency meeting
Central bank says future purchases of government bonds preferable to lower rates
Book notes: The art of economic catch-up, by Keun Lee
Rather than merely catch-up, the book offers countries advice in making a sea change in their economic statuses
Bank of Canada follows Fed with coronavirus rate cut
It is “becoming clear” virus will impact growth more than previously expected, central bank says
Policy responses to Covid-19
The coronavirus outbreak poses a real threat to the global economy, writes Sayuri Shirai
Bank of Ghana hails tech upgrade in forex market
Rollout of Refinitiv system should cut fragmentation and boost transparency, says governor
Competitive devaluation would harm US, Brookings paper warns
Trump’s calls to devalue currency would have damaging effects if followed, researchers say
Advanced economies’ inflation more synchronised – Bank of Spain paper
Headline inflation rates are more highly correlated than core inflation, authors find
RBA and Bank of Korea expand local currency swap agreement
The initial deal was signed in 2014 and has been renewed every three years
Watch out for Brexit cliff edge 2.0, experts warn
Measures to mitigate a sharp rupture for financial services could be less likely at end-2020
De Guindos stresses uncertainty from coronavirus outbreak
Powell and Carney said Fed and BoE are closely monitoring the virus’s impact on the economy
Risk manager: Central Bank of Brazil
The G20 central bank has made important breakthroughs in applying ERM