Sovereign debt
Monetary policy can ease sovereign risk, says IMF paper
Fund study shows sovereign risk becomes a critical determinant of macroeconomic outcomes if the central bank is constrained in counteracting higher risk premiums
FSB Regional Consultative Group meetings continue
Middle East and North Africa consultative group is latest regional FSB body to meet; discussed financial vulnerabilities of the region
Markets will drive policymakers into action: Denmark’s Bernstein
National Bank of Denmark governor Nils Bernstein says eurozone governments are short of solutions to debt crisis but must reach a consensus
Debt crises lead to sharp and protracted recessions: IMF paper
Fund study shows debt crises reduce output growth by about 10 percentage points and last an average of eight years
NALM Africa 2011: African central banks rethink reserves allocations
The drop-off in US Treasury yields and concern about a eurozone sovereign collapse has prompted a number of African central banks to review their reserves allocations
Eurozone crisis altered sovereign spreads: IMF paper
Fund study says risk assessment of sovereigns and banking sector gradually converged as sovereign debt crisis evolved
Emerging market central banks lead gold rush
World Gold Council Global Demand Trends report shows central banks were net buyers of gold in third quarter of 2011, led by Russia, Bolivia and Thailand
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic
Greece referendum puts eurozone rescue plan in jeopardy
Athens throws spanner in the works with the announcement of a referendum on the eurozone rescue package in January; parliamentary confidence vote also due on Friday
Governments must ‘earn’ quasi-risk-free status: BIS’s Hannoun
Bank for International Settlements deputy general manager Hervé Hannoun says advanced economy governments can earn back quasi-risk-free status through prudent fiscal policy
BIS’s Caruana urges eurozone to attack root of sovereign debt problem
Bank for International Settlements general manager Jaime Caruana says bolstering banks’ capital buffers not sufficient to regain risk-free status
Gonzalez-Paramo urges speedy action in Europe
ECB executive board member pushes for more haste from European leaders to stem the crisis; says ECB has not decided when to end bond-buying programme
Central banks open new chapter as large net gold buyers
Thomson Reuters GFMS Gold Survey 2011 shows net official purchases of gold rose to more than 200 tonnes during the first half of the year; forecasts gold to reach $2,000 by year-end
Greece may not opt for debt swap
Greek authorities say they will not agree to private-sector involvement unless 90% of eligible government bonds are included in transaction
Vote now: Should Greece leave the euro?
CentralBanking.com is running a poll to gauge readers' thoughts on the breakdown of the eurozone
Last-minute US debt ceiling rise leaves world reeling
Debt ceiling deal will not restore investor confidence immediately; China still looking to diversify reserves away from dollar; credit ratings agencies cautiously affirm top ratings
Brazil ‘prepared’ for international challenges: Tombini
Governor of the Central Bank of Brazil says country is ‘prepared’ to face the challenges in the international arena; expects inflation downward trend to continue
Lagarde sets out ‘four-C’ plan to keep IMF relevant
Christine Lagarde says IMF must focus on clients and connections, be comprehensive and credible; reform of voting system is a top priority
Banks have most to lose from a US default: Standard & Poor's report
Standard and Poor’s says financial institutions reliant on short-term funding from the US Treasury would be hit hardest if the US were to default on its debt
Bank of Italy – Economic Bulletin (July 2011)
Bank of Italy July 2011 Economic Bulletin says risks from European sovereign debt crisis have spread to Italy
Sovereign default risks amplify supply shocks: IMF paper
Fund study incorporates sovereign default risks into a general equilibrium model
US will resolve debt crisis by August 2: Obama
President Barack Obama says failure to raise the US debt ceiling would be “not acceptable”
BIS report highlights steps to curb sovereign debt risks
Basel working group outlines measures central banks can introduce to mitigate the risks associated with sovereign debt