Monetary Law

Language of Money / Die Sprache des Geldes

The Musuem for Communication (Museum für Kommunikation) in Frankfurt am Main / Germany is having an euro exhibition on the language of money. Click here for pictures.

 

East African Monetary Union

Opening remarks by Prof Njuguna Ndung'u, Governor of the Central Bank of Kenya, during the East African Legislative Assembly Workshop on the East African Monetary Union, Nairobi, 4 March 2010.

International Financial and Monetary Law Network

The Society of International Economic Law (SIEL) has approved the establishment of a new SIEL International Financial and Monetary Law Network.

The SIEL International Financial and Monetary Law Network is being established as a sub-group within SIEL to build a network amongst academics, practitioners and officials interested in the field of international financial and monetary law.

Its purpose is to foster a specialized level of engagement and encourage targeted SIEL events on international finance and monetary law.

The SIEL International Financial and Monetary Law Network will be officially launched at the second SIEL conference in Barcelona in July 2010.  The launch will include an initial organizational meeting, with all those interested in the subject area encouraged to attend to discuss the future direction, role and activities of the network.

For more information, follow this link.

Towards a global financial stability framework

Speech by Hervé Hannoun, Deputy General Manager of the Bank for International Settlements, at the 45th SEACEN Governors'; Conference, Siem Reap province, Cambodia, 26-27 February 2010.

Abstract

A new global financial stability framework is needed to reduce the probability and severity of a future financial crisis. The financial stability framework needs to be global in the sense of being both worldwide and comprehensive, with contributions from prudential, monetary and fiscal policies. Market discipline and microprudential regulation alone cannot achieve financial stability. Monetary and fiscal policies need to contribute by leaning against the build-up of financial imbalances and by responding to busts in a symmetric fashion. Central banks are increasingly aware of the potential for trade-offs between price stability and financial stability in the short run, recognising that these objectives are complementary in the long run. Fiscal policy must be countercyclical and maintain buffers that provide the ability to respond in times of financial system stress. Enhancements to microprudential regulations to increase the resilience of individual financial institutions must be accompanied by macroprudential policies that address the stability of the financial system over time and at each point in time. The need to break with the leverage-led growth model is highlighted.

Market Maker of Last Resort

Speech by Mr Paul Fisher, Executive Director for Markets and Member of the Monetary Policy Committee of the Bank of England, for the Association of Corporate Treasurers Winter Paper 2010, London, 18 February 2010.

In this speech, Mr Paul Fisher addresses, i.a., central banks' market maker of last resort (MMLR) function that may be necessary with a view to "maintaining conditions for the stable provision of financial services to the wider economy."

This MMLR function--similar to central bank's lender of last resort function (LLR)--was eleborated upon by Mr Paul Tucker, Deputy Governor Financial Stability BoE, in his 2009 speech ‘The Repertoire of Official Sector Interventions in the Financial System: Last Resort Lending, Market-Making, and Capital.’

The term “macroprudential”: origins and evolution

"In the wake of the recent financial crisis, the term "macroprudential" has become a true buzzword. A core element of international efforts to strengthen the financial system is  to enhance the macroprudential orientation of regulatory and supervisory frameworks. Yet the term was little used before the crisis, and its meaning remains obscure. This special feature traces the term's origins to the late 1970s, in the context of work on international bank lending carried out under the aegis of the Euro-currency Standing Committee at the BIS. It then describes its changing fortunes until its recent rise to prominence."

BIS Quarterly Review, March 2010

The future of European and international financial market regulation and supervision

Speech by Mr Jose Manuel Gonzalez-Paramo, Member of the Executive Board of the European Central Bank, at the Institute of International and European Affairs, Dublin, 19 February 2010: 'Globalisation, international financial integration and the financial crisis – the future of European and international financial market regulation and supervision'

The speech addresses, i.a., a mandate for financial stability for central banks.

Financial stability: 10 questions and about seven answers

Speech delivered by Mr Jaime Caruana, General Manager of the BIS, at the 50th Anniversary Symposium of the Reserve Bank of Australia, Sydney, 9 February 2010.

Q #7: Does Financial stability need help from monetary policy?

Q #8: Are central banks equipped for their financial stability role?

The Greek crisis and the future of the euro zone

Reuters.com has ran an article analyzing five scenarios of the Greek crisis:

1. Greece rescues itself
2. Greece muddles along in 'slow burn' crisis
3. Greece heads toward default
4. EU bails out Greece
5. EU launches wider bailout

In every scenario Reuters describes the scenario, gives an estimate of the probability of the scenario, and analyzes market implications.

Olli Rehn New EU Commissioner for Economic And Monetary Affairs

The European Union's parliament has approved the new EU Commission for 2010-2014. The Fin Olli Rehn is the new commissioner responsible for economic and monetary affairs. In the previous Commission, Mr. Rehn was responsible for enlargement. Follow this link for Mr. Rehn's profile.