Economics
Fitch issues stern warning to the US
Affirms AAA rating but says failure to agree on deficit-reduction measures would ‘likely result in negative rating action’
RBA paper on lessons from Australia's labour market since 2000
Reserve Bank of Australia study says evidence from labour market since 2000 shows decline in number of hours worked can prove an effective adjustment mechanism during downturns
Firm-level data can improve business cycle forecasting: ECB paper
European Central Bank study says firm-level data of equity price movements can help predict business cycle fluctuations
Exchange rates are influenced by macroeconomic performance: Buba paper
Bundesbank study finds link between macroeconomic fundamentals and exchange rate movements through expectation of monetary policy
FOMC rate commitment will aid US recovery: NY Fed’s Dudley
New York Federal Reserve president William Dudley says Fed's commitment to low interest rates till mid-2013 provided support for economy
Stronger property rights can help alleviate poverty: IMF paper
Fund study says stronger property rights can lead to greater financial deepening in sub-Saharan countries
IMF paper on steps to adjust Middle Eastern current accounts
Fund study identifies steps to reduce imbalance in current accounts of Central Asia and the Middle Eastern countries
Swiss franc falls on euro peg talk
Swiss franc loses 6.7% against the euro and 6.1% against the dollar as markets digest comments by Swiss National Bank vice chairman Thomas Jordan
Good luck played role in post-crisis recovery: BIS paper
Bank for International Settlements study says combination of good policies and good luck led to variation in macroeconomic performance of countries
High barriers to entry creates credit premium: RBNZ’s Bollard
Reserve Bank of New Zealand governor Alan Bollard says large barriers to entry in New Zealand banking sector raises overall financing costs
SNB devaluation attempt flounders as Swiss franc rebounds
Swiss franc claws back earlier losses after central bank intervenes to curb rise in currency
Taxing financial transactions through central counterparties: IMF paper
Fund study says there are cost advantages to implementing financial taxes through exchanges and clearing houses
Sarb’s Mminele on application of economic models in policy-making
South African Reserve Bank deputy governor Daniel Mminele says greater flexibility should be applied to macroeconomic modelling
ECB extends bank support as rates are held around the world
ECB to offer unlimited six-month credit to support banks; BoE continues gamble with inflation
RBI paper says gold is misclassified in capital formation
A Reserve Bank of India study says valuables such as gold are misclassified in the gross capital formation as store value
Towards a global monetary policy
US monetary policy must change as the dollar’s dominance wanes, writes Allan H. Meltzer.
Asymmetric information amplifies borrowing costs: BIS paper
Bank for International Settlements study shows that higher spreads are charged to syndicates due to asymmetry of information in loan markets
ECB paper identifies benefits of forecast aggregation
European Central Bank study shows forecast aggregation can significantly improve forecast performance
Obama acknowledges AAA credit rating at risk
Obama says result of downgrade would be “like a tax on everyone” with higher interest rates; remains hopeful that there are “plenty of ways out of this mess”
Cyprus fiscal woes deepen as Moody’s downgrades
Moody’s downgrades Cyprus two notches as country’s fiscal problems force government to resign
Thailand’s Trairatvorakul offers guidance to new government
Bank of Thailand governor Prasarn Trairatvorakul says government will need to boost productivity as competition globally intensifies
Federal Reserve – Beige Book (July 2011)
Federal Reserve July Beige Book shows United States experienced slowdown in economic activity on east coast
RBA’s Stevens on need for productivity-driven growth
Reserve Bank of Australia governor Glenn Stevens says Australia should capitalise on its good terms of trade and boost productivity growth
College drop-out rate is strongly correlated to income: Boston Fed
Boston Federal Reserve study shows poor students are 27% more likely to drop out of college than wealthier students