BIS research shows higher bank capital reduces volatility spillovers
The financial system is a public good, with banks at their heart. Shocks that hit one bank tend to spill over to other banks, and can cause a cascade of…
Read More ECB announces additional LTROs among monetary policy measures
The ECB Governing Council decided on a comprehensive package of monetary policy measures: (1) Additional longer-term refinancing operations (LTROs) will be conducted, temporarily, to provide immediate liquidity support to the…
Read More 
Central banks consider new growth tools amid coronavirus worries
The Fed may be looking at the end of its already broadened toolkit for boosting growth. The ECB is considering all of its policy options while expressing frustration with politicians.…
Read More ECB launches review of its monetary policy strategy
Review will encompass quantitative formulation of price stability, monetary policy toolkit, economic and monetary analyses and communication practices Other considerations, such as financial stability, employment and environmental sustainability, will also…
Read More 
Getting from a bigger Fed balance sheet to calm repo markets (Premium)
Fed: “Okay, here’s the plan: build up reserves and that’s going to keep repo rates in check. Okay? Okay.” The Fed has announced its strategy for interest rate management. Will…
Read More BIS releases reports on unconventional monetary policy tools and the role of central banks and market functioning
The Committee on the Global Financial System (CGFS) and the Markets Committee have published two major reports on the implementation and implications of unconventional monetary policy tools (UMPTs) introduced by…
Read More 
Markets warned on populism eroding central bank independence
The European Central Bank’s Yves Mersch, Member of the Executive Board, recently spoke about central bank independence. There is a long history of argument on this topic, and central bank…
Read More 
A new analysis on the impact of central bank digital currencies to private banks
A research paper from the St. Louis Federal Reserve investigates how a central bank digital currency would impact private banks, but along the way gets to the heart of a…
Read More BoE’s Carney says weak pay growth in UK unlikely to be caused by tech
Excerpts from speech by Mark Carney, Governor of the Bank of England, 2018 Whitaker Lecture, Central Bank of Ireland, 14 September 2018 Although current rates of pay growth in the…
Read More How can central banks effectively monitor transmission of monetary policy?
A new paper from the European Central Bank looks at the transmission of monetary policy and the concept of fragmentation, which means that monetary policy goals are not getting through…
Read More BoE research shows OIS rates measure monetary policy expectations
Bank of England staff Simon Lloyd assesses the use of overnight indexed swap (OIS) rates as measures of monetary policy expectations. He finds that 1- to 12-month US OIS rates…
Read More Basel Committee consults on extraordinary monetary policy operations in the NSFR
The Committee released its first technical amendment, which is related to the treatment of extraordinary monetary policy operations in the Net Stable Funding Ratio. To provide greater flexibility in the…
Read More International Banker: Collateral is central bank policy’s secret sauce
Modern economies run on the back of a monetary and financial system through which most transactions ultimately settle in central bank money. As the ultimate issuers of money, central banks…
Read More 
Cleveland Fed shows big spreads in Fed Funds simple rules models
The Federal Reserve Bank of Cleveland periodically publishes projections on Federal Funds based on a concept of “simple rules”. Simple rules are formulae based on a finite set of real-world…
Read More 
A proposed change to US balance of trade metrics creates a new benchmark challenge for collateralized trading
The US administration is considering a change in the way trade statistics are calculated. In the world of collateralized trading, including spread-based swaps and other derivatives pegged to predictors, any change to…
Read More 
ECB report shows more market instability as central bank policy is uncertain
On January 13th, the European Central Bank (ECB) released its summary of their December 2-3rd debate over stimulus and rate direction. There remain calls for stronger and increasing stimulus by…
Read More 
Rate games adding to the complexity in collateralized funding markets (Premium)
Now that the US Fed has uncorked the bottle with their first rate hike in several years, central banks around the world are starting to react in interesting ways. As…
Read More What the repo market teaches us about the Fed tightening rates
Please Login to view this content. (Not a member? Subscribe Today!)
Read More 
The Fed publishes “Overnight RRP Operations as a Monetary Policy Tool: Some Design Considerations”, a look at the RRP program objectives and risks, Part I
The NY Fed has published a lengthy article focusing on the Reverse Repo (RRP) facility, “Overnight RRP Operations as a Monetary Policy Tool: Some Design Considerations”, Federal Reserve Bank of…
Read More Smart thinking on monetary and economic policy from the BIS
In a Friday speech at the 12th annual Bank for International Settlements annual conference, Stephen Cecchetti, Head of the Monetary and Economic Department at the BIS, had some interesting lessons…
Read More