Economics
Political impasse raises US default concerns
As the August 2 deadline to raise the US debt ceiling looms, Blair Baker looks at what the prospect of a default in the US means for the world and whether the Fed can play a pivotal role in Washington
BoJ’s Shirakawa says ‘rebuilding demand’ will foster growth
Bank of Japan governor Masaaki Shirakawa says that while supply-side constraints are vital to the recovery in Japan, 'demand-side' factors were necessary to drive growth in the near term
BoE paper identifies drivers of energy price volatility
Bank of England study says risk premium and productivity shocks operated in inverse directions on inflation in the UK
St Louis Fed paper observes high government reallocation costs
St Louis Federal Reserve study says governments come up against high capital and labour reallocation costs when responding to a negative demand shock
ABS markets influential on composition of international debt markets: ECB report
European Central Bank study on asset-backed securities markets provides valuable insight into the currency composition of international debt markets
Australia’s economic performance not all down to luck: RBA’s Edey
Reserve Bank of Australia assistant governor Malcolm Edey says good luck and good management played a role in Australia’s strong economic performance in recent years
Small businesses hit harder during recession: NY Fed
New York Federal Reserve study shows weak consumer demand for small firms’ products and services led to disproportionate decline for these firms
National Bank of Hungary paper assesses input distortions in CEE countries
National Bank of Hungary identifies labour and capital market distortions in central and eastern European countries
European Commission unleashes region-wide capital requirement proposal
Commission sets out plans to 'change the behaviour of the 8,000 banks that operate in Europe'; rules limit member states’ right to legislate on capital requirements
IMF paper on cyclicality of oil producers' expenditure
Fund study shows fiscal policy is pro-cyclical in low- and middle-income oil-producing countries, but counter-cyclical in high-income countries
Bank of Albania – Annual Report (2010)
Bank of Albania 2010 Annual Report shows economic activity in Albania was positive despite external shocks to economy
Singapore’s Shanmugaratnam highlights growth opportunities in Asian insurance markets
Monetary Authority of Singapore chairman Tharman Shanmugaratnam says untapped resources remain in Asia’s insurance markets
Mexican recovery reflects external patterns: Mexico’s Sánchez
Bank of Mexico deputy governor Manuel Sánchez says economic recovery in Mexico underpinned by external factors
Response to fiscal policy shocks can impact debt expectations: ECB paper
European Central Bank study says fiscal shocks not accompanied by an expected spending reversal increases debt burden and reduces economic activity
Frequency of cyclical unemployment is rising: Fed paper
Federal Reserve study shows cyclical movements in unemployment have become more persistent in recent decades
Foreign exchange intervention less effective in open economies: IMF paper
Fund study shows the effects of foreign exchange intervention on currency is less effective the more open the economy
Boston Fed’s Rosengren clarifies state of US recovery
Boston Federal Reserve president Eric Rosengren says US recovery is not in a soft patch, but in a consistently weak state
ECB paper highlights differences in EU real wage flexibility
European Central Bank study shows real wages are more flexible in Central and Eastern European economies than euro area countries
Policymakers can mitigate post-crises unemployment effects: Turkey’s Başçı
Central Bank of Turkey governor Erdem Başçı says declines in employment during crises can be reduced by introducing policies to ease firms’ borrowing costs
BoJ’s Shirakawa optimistic over post-earthquake recovery
Bank of Japan governor Masaaki Shirakawa points to further evidence that supply-side constraints are easing
China insists local government debt is ‘manageable’
People’s Bank of China dismisses claims local government financing vehicles owe 14 trillion yuan; says risks from the debts are manageable
Expansionary effects of fiscal contractions overstated: IMF paper
Fund study finds bias in literature towards expansionary effects on fiscal contractions
Renminbi gains offer boost to foreign competitors: IMF paper
Fund study shows appreciation of renminbi increases stock price of foreign competitors and exporters to China
Minneapolis Fed’s Kocherlakota urges review of US tax code
Minneapolis Federal Reserve president Narayana Kocherlakota says US lawmakers must reduce incentives by households and financial institutions to overleverage