Economics
Bank of Israel: riskier firms still turn to banks for funding
Bank of Israel study says profitability of firm and size determined method of financing with low profit firms preferring bank loans
Zambia’s Fundanga: cost of capital still too high
Bank loans within the reach of the masses, but interest rates remain prohibitively high
Fed’s Hoenig: we risk repeating past mistakes
Federal Open Market Committee dissenter warns that US economy requires prolonged period of rebalancing that low rates alone cannot tackle
China overtakes Japan as world’s second largest economy
Figures from Japanese Cabinet Office show that China’s GDP exceeded that of Japan in the three months to June
India’s Gokarn terms inflation a “legitimate concern”
Reserve Bank of India deputy governor Subir Gokarn says supply side price pressures cannot be controlled through standard monetary policy measures
‘Bail-in’ rather than bailout, says European markets group
Association for Financial Markets in Europe proposes regulator-enforced version of contingent capital to replace state-funded bailouts; proposals still troublesome, Goodhart says
Trinidad to reap rewards of rising oil prices: Williams
Central Bank of Trinidad and Tobago’s Williams predicts growth of 1.5%
Bank of Japan watching soaring yen closely
Japanese central bank says it is carefully monitoring strengthening currency and its implications for export market; plummeting confidence in the US recovery sparks worry
Bank leaps to defence of off-target inflation forecasts
Bank of England lifts inflation predictions on volatility from short-term shocks, mounting spirited defence of erroneous predictions to date; slightly lowers growth expectations
IMF: Noughties oil swings driven by demand
IMF study says global oil demand shocks led to volatility in prices during last decade
Japanese slightly less gloomy on economy
Bank of Japan’s opinion survey reveals a little more optimism
Commentators sharpen knives ahead of Bank’s forecasts
Leading media outlets criticise Bank of England’s forecasting methods ahead of Wednesday Inflation Report; former Bank economists say new model welcome but will not remedy rate-setters unfounded optimism, which underpins off-target predictions
Minister takes heat off BoJ, calls for Diet to do more against deflation
Senior vice minister Hideo Hiraoka says government must employ fiscal and industrial policy to quell deflation; comments add to growing body of support for Bank of Japan’s policy stance
China’s Hu: renminbi policy complements market pricing
Market pricing of key economic inputs will complement the reform of the renminbi exchange rate regime, says Hu Xiaolian
IMF: foreign investment flows have varying effects
IMF study shows that foreign direct investment flows are more effective in some sector of the economy than others
IMF links historical house prices to default loss
IMF study finds strong link between historical house prices and loss in event of default
Turkey’s Yilmaz dismisses benefits of capital deepening
Central Bank of Turkey governor Durmuş Yılmaz says country should focus on increasing existing sources of production instead of increasing capital intensity
Ageing to drive down asset prices
Bank for International Settlements research says demographic trends will reduce house prices significantly
Barbados’ Worrell urges rethink on economic assumptions
Researchers “rushing down a path to irrelevance” says DeLisle Worrell
Buba: German household investments strengthen
Bundesbank financial accounts showed households’ financial assets gained for fourth consecutive quarter while debt declined
NY Fed: Funding liquidity explains investor hedging behaviour
New York Federal Reserve study finds funding liquidity risk plays important role in stock returns
Dallas Fed: Oil shocks driven by supply and demand factors
Dallas Federal Reserve study links variations in oil prices and US growth patterns over past four decades to endogenous shocks
South Africa in fresh attempt to curb rand volatility
Ruling African National Congress will consider short-term capital inflows tax to curb rand volatility, currency’s strength; party questions merits of Sarb’s hard-won inflation targeting regime
China now world’s second-largest economy, says PBoC’s Yi
People’s Bank of China vice governor Yi Gang says China has overtaken Japan