Usually central banks seek to reduce market volatility rather than add to it. But then sometimes markets need their cages rattled…
Implications of the SNB decision extend far beyond Switzerland, Financial Times, 15 Jan 2015
The latest DHL report shows that global connectedness, measured by cross-border flows of trade, capital, information and people, has recovered most of its losses incurred during the financial crisis…
DHL Global Connectedness Index 2014
Signs of life, The Economist, 15 Nov 2014
When did globalisation start? The Economist, 23 Sep 2014
Swaps mis-selling, the LIBOR-fixing scandal, now this…
Currency trading: Fixed penalty, The Economist 15 Nov 2014
Two senior City traders suspended in forex scandal, Daily Telegraph, 6 Mar 2014
Forex trading speeds up moves to computer platform, Financial Times, 3 Mar 2014
A timely reminder of the currency choices facing an independent Scotland…
Scotland’s currency future: what economists think, Financial Times, 6 Sep 2014
A reminder of all the useful stuff you can find on the Institute of International Finance website. Here is a recent paper on what’s happening with capital flows to emerging market economies in the wake of concerns about the Ukraine crisis and future Fed tightening…
May 2014 Capital Flows to Emerging Market Economies, IIF website
Economics of Scottish Independence, NIESR Feb 2014
Mark Carney raises doubts over Scotland’s plan to share the pound, The Guardian, 29 Jan 2014
The sterling price of Scottish independence, BBC News, 29 Jan 2014
The economics of currency unions, Mark Carney, BoE Governor, 29 Jan 2014
Currency Choices for an Independent Scotland: Response to the Fiscal Commission Working Group, 26 Apr 2013
For information, current Scottish notes are not “legal tender”. Official Bank of England view is here.
Back to the future with Scottish currency, Chris Cook, FT Alphaville, 17 Feb 2014 (entertaining, alternative view)
BBC Radio 4 is starting a new series on the rise of the US Dollar. The first part (of five episodes) begins with the history of the American dollar up to the establishment of the Federal Reserve in 1913.
Greenback: How The Dollar Came To Rule The World, BBC Radio 4
This year’s central bank gathering at Jackson Hole heard arguments that the classic policy “trilemma” has morphed into a “dilemma” (the Hélène Rey paper). The basic idea is that financial markets are now so globalised that free capital flows limit monetary policy independence even when the exchange rate is left to float. One possible conclusion is that market heavyweights like the Fed impose significant (negative) externalities on innocent bystanders when flooding the ailing US financial system with liquidity.
While understandable, such conclusions are too simplistic. As this article points out, the recent woes of emerging markets are as much to do with home-grown policy than with the Fed’s prospective tapering.
Don’t blame the Fed for EM woes, Financial Times, 4 Sep 2013
Drawing parallels for the euro with the ill-fated gold standard…
A trio of trilemmas, The Economist, 6 Jul 2013
The European Crisis in the Context of the History of Previous Financial Crises, Bordo & James, NBER WP19112, Jun 2013