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IMF SPEECH IN TURKEY

IMF Update: Speech

Moving Beyond the Crisis:

Global Outlook and Policy Challenges

Fri 6/19/09

New item:

Moving Beyond the Crisis:

Global Outlook and Policy Challenges

Keynote address by John Lipsky First Deputy Managing Director IMF to Turkish Industrialists’ and Businessmen’s Association (TÜSIAD)

http://www.imf.org/external/np/speeches/2009/061909.htm

For tracking globalization and its impact on individual economies, please see the new IMF Survey magazine online at http://www.imf.org/external/pubs/ft/survey/so/home.aspx

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IMF Update: Speech

Moving Beyond the Crisis:

Global Outlook and Policy Challenges

http://www.imf.org/external/np/speeches/2009/061909.htm

Fri 6/19/09

BASEL COMMITTEE

Press release:

Basel Committee and IADI issue Core

Principles for Effective Deposit Insurance

Systems

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Thu 6/18/09

The Basel Committee on Banking Supervision and the International Association of Deposit Insurers (IADI) today issued the Core Principles for Effective Deposit Insurance Systems.

The deposit insurance Core Principles, which were developed by a joint working group between the Basel Committee and IADI, address a range of issues including deposit insurance coverage, funding and prompt reimbursement. They also focus on issues related to public awareness, resolution of failed institutions and cooperation with other safety net participants, including central banks and supervisors. Events during the recent international financial turmoil illustrate the importance of effective depositor compensation arrangements and the need for authorities to agree on an international set of principles for effective deposit insurance systems.

Martin Gruenberg, President of IADI and member of the Basel Committee, noted that “The Core Principles issued today respond to one of the lessons of the financial crisis: the need for effective deposit insurance guidelines to help maintain public confidence. They set an important benchmark for countries to use in establishing or reforming deposit insurance systems.”

The Basel Committee and IADI published for public comment a consultative version of the Core Principles in March 2009 and the paper issued today represents the final version.

Communications,

Bank for International Settlements

E-mail: press@bis.org

Website: www.bis.org

Phone: +41 61 280 8188

Press release

Press enquiries: +41 61 280 8188

press@bis.org

www.bis.org

Ref no: 26/2009

18 June 2009

Basel Committee and IADI issue Core Principles for Effective Deposit Insurance Systems

"WORLD ECONOMICS"

World Economics: Content Alert – Volume 10 No 1

World Economics

Content alert

WORLD ECONOMICS

Volume 10 • Number 1, 2009

Thu 6/18/09

These papers are from the latest issue. Click the titles to go to the journal’s website for the full-text articles. At the website use Search or browse Previous issues to check your areas of interest.

Sweden’s Bank Nationalisations

Are there lessons for today?

Fredrik Erixon

Many banks are on the verge of bankruptcy and have received support from the government to stay afloat. Measures taken have not sufficed, and an increasing number of economists and commentators are calling for the nationalisation of banks in the United Kingdom and United States. In their advocacy, they use Sweden as an exemplar, suggesting that massive bank nationalisation was the way it fixed its collapsing banking sector in the early 1990s. This account of Sweden’s resolution policy is erroneous and exaggerates the role of nationalisation. Sweden successfully combated a banking crisis, and two banks received full government ownership. The main example of nationalisation, however, was a financial reconstruction of a bank already controlled by the government. The only real example of nationalisation of a privately owned bank hardly offers lessons for ways to resolve the current banking crisis.

The Oil-producing Gulf States, the IMF and the International Financial Crisis

Bessma Momani

As the finance-strapped International Monetary Fund (IMF) was placed at the centre of coordinating funding and offering ideas to navigate out of the international financial crisis, it became clear that the international community needed to reinvigorate the emerging market economies’ role in the organisation and in the broader international financial architecture. At the time of the Group of 20 (G20) meetings, the Gulf states were viewed as likely contributors to IMF liquidity. Despite the UK’s Prime Minister Gordon Brown’s visit to the Gulf in November 2008, and his claim that the Gulf would assist in an injection of liquidity into the IMF, the Saudi rulers decided to go empty-handed to the G20 meetings in Washington. Unlike the 1970s, when the Gulf came to the rescue of the western and international banking system, today Gulf rulers are more responsive to a new class that is more scrutinising of petrodollar recycling.

The Institutional Framework of the Gulf Central Bank

Nasser H. Saidi & Fabio Scacciavillani

This paper discusses the viable alternatives for a suitable institutional and governance framework for the policymaking body presiding over the GMU. The authors review a series of alternatives, from the simplest one (i.e. a governors’ council formed by the governors of the national central banks and monetary authorities, each endowed with a single equal vote), to the more elaborate ones, involving the set-up of a supranational institution, a Gulf Central Bank (GCB) with permanent staff, an appointed president and an executive board, which together with the national governors would form a monetary policy council (MPC) responsible for the setting of monetary policy instruments and taking decisions in all the main areas of monetary policy. The members of the MPC could be given equal voting rights, or voting power weighted according to the economic and financial size of each country, with some corrective counterweight mechanisms, such as a specific voting weight for the president and/or the executive board to provide checks and balances. The solution the authors feel markets (and the public) would find more credible and suitable would be one involving the creation of a new GCB with its own staff and an independent executive board, because it would strengthen the authority and sustainability of the institutional arrangement, and create an organisation that is an effective counterpart of the other major international central banks and financial markets.

The World Financial Crisis

New economy, globalisation and old-fashioned philosophy

F. Gerard Adams

The world financial crisis of 2008 is a consequence of new financial technologies, new accounting methods and new international linkages. These developments have come at a time when governments have returned to an old-fashioned free market philosophy. This paper links the systemic financial/economic crisis of 2008 to the new economy developments, globalisation and policy philosophy perspectives of recent decades. It raises the question of how to re-establish confidence once traditional thinking has been questioned.

Economists and Climate Science: A Critique

David Henderson

This paper presents a critique of the characteristic treatment by economists of climate science, which appears as over-presumptive and uncritical. While the paper draws on a range of illustrative cases, the main focus is on six recent and important contributions. The present author argues that the authors and sources concerned, along with a good many others not quoted, have accepted too uncritically the received view as to the current significance of anthropogenic global warming and its possible dangers. They have placed undue trust in the official advisory process that governments have created and rely on, and disregarded evidence that puts that process in question. Hence there is a missing dimension in their treatment of policy aspects: they have not caught on to the need to strengthen the basis of policy by making the advisory process more objective and professionally watertight.

A Question of Fudge

Professor Nordhaus on climate change and mitigation policy

Mohammed H.I. Dore

This paper is an outline and critique of William Nordhaus’ book A Question of Balance (2008), in which he proposes his optimal policy for dealing with global climate change. Nordhaus finds that the proposals of the Stern Review and that of Al Gore are inefficient and costly. The critique of Nordhaus is focused on (1) the structure of his model, which requires marginal costs be equal to marginal benefits everywhere and at all time periods, and that (2) the rate of discount be based on the opportunity cost of private capital, and (3) his failure to treat climate change as a global public good.

How Much Would it Cost to Avoid Climate Change?

Bryan Buckley & Sergey Mityakov

This paper summarises various estimates of the costs of mitigation of the adverse impact of climate change. It finds that the differences in the estimated impacts on gross domestic product, consumption, employment, and gasoline, electricity and natural gas prices are driven mainly by the following factors: the time frame of new technology development, the growth potential of existing clean sources of energy, the availability of offsets (domestic, international), and the banking of allowances.

However, its main finding is that, even for more optimistic estimates, the mitigation costs are likely to amount to as much as a 1% drop in consumption, starting today and going into the future, which, as is argued in this paper, constitutes an enormous impact on social welfare. Thus, it is important to carefully assess the costs of global warming to see whether they justify such drastic measures.

The Banking Crisis and Inequality

Tim Lankester

The Dangers of Déjà Vu Economics

Graham Bird

The Great Moderation and the New Business Cycle

Ann Spehar

Charles Goodhart on Jean-Charles Rochet, Why Are There So Many Banking Crises?

The Politics and Policy of Bank Regulation

WORLD ECONOMICS

Published quarterly

www.world-economics-journal.com

Please feel free to forward this alert to your colleagues.

World Economics: Content Alert – Volume 10 No 1

World Economics

Content alert

WORLD ECONOMICS

Volume 10 • Number 1, 2009

Thu 6/18/09

CREDIT RATINGS: JOINT FORUM

Press release:

Joint Forum releases its final paper

“Stocktaking on the use of credit ratings”

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Mon 6/15/09

The Joint Forum today released the final version of its paper entitled Stocktaking on the use of credit ratings.

The paper was developed in response to a request from the Financial Stability Forum (FSF) for the Joint Forum to conduct a stocktaking of the uses of external credit ratings by its member regulatory authorities in the banking, securities and insurance sectors. The Joint Forum prepared and circulated to member authorities a questionnaire on the use of credit ratings in their jurisdictions. The questionnaire was designed to elicit information regarding member authorities’ use of credit ratings in legislation (statutes), regulations (rules), and/or supervisory policies (guidance) governing, generated by, or affecting such authorities. The report focuses on the responses concerning the usage of credit ratings. It also describes respondents’ assessments regarding the impact of their use of credit ratings.

John C Dugan, Chair of the Joint Forum and Comptroller of the Currency in the United States, said today: “This paper provides valuable information on the regulatory use of credit ratings by a broad range of regulatory authorities, including banking, securities, and insurance supervisors across 12 countries. Policymakers and others will find the report a useful reference when considering the extent to which credit ratings should be relied on in regulation and supervision going forward.”

This paper has already been released to the FSF in December 2008 as part of the process associated with the G7 – Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience[1].

The paper is available on the websites of the Bank for International Settlements (http://www.bis.org), IOSCO (http://www.iosco.org) and the IAIS (http://www.iaisweb.org).

The Joint Forum was established in 1996 under the aegis of the Basel Committee on Banking Supervision, IOSCO, and the IAIS to deal with issues common to the banking, securities and insurance sectors, including the supervision of financial conglomerates.

[1] See http://www.fsforum.org/publications/r_0804.pdf

Communications,

Bank for International Settlements

E-mail: press@bis.org

Website: www.bis.org

Phone: +41 61 280 8188

[1] See http://www.fsforum.org/publications/r_0804.pdf.

FINANCIAL STABILITY FORUM

FINANCIAL STABILITY FORUM

FSF E-Mail Alert

www.fsforum.org

fsforum@bis.org

Wed 6/17/09

FSF e-mail alert on 17.06.2009 06:09 (GMT)

financial stability international

5 new document(s) found since 16.06.2009.

1. Financial Stability Forum Recommends Actions to Enhance Market and … (02.04.2009 17:00) – PDF, 63696 bytes

Press Release

FINANCIAL STABILITY FORUM

Centralbahnplatz 2 · CH-4002 Basel · Switzerland · Telephone: (+41 61) 280 8080 · Fax: (+41 61) 280 9100 www.fsforum.org

Press release Press enquiries: +41 76 350 8430 fsforum@bis.org Ref no:13/2009 2 April 2009

http://www.fsforum.org/press/pr_090402a.pdf

2. Report of the Financial Stability Forum on Addressing Procyclicality in the … (02.04.2009 12:37) – PDF, 159466 bytes

Report of the Financial Stability Forum on Addressing Procyclicality in the…

…of the Financial Stability Forum on Addressing Procyclicality in the Financial System 2 April 2009

F I N A N C I A L S T A B I L I T Y F O R U M Report of the Financial Stability Forum on Addressing Procyclicality in

http://www.fsforum.org/publications/r_0904a.pdf

3. FSF Principles for Sound Compensation Practices (02.04.2009 12:37) – PDF, 88849 bytes

FSF Principles for Sound Compensation Practices

…FINANCIAL S T A B I L I T Y F O R U M 1 Introduction1 Compensation practices at large financial institutions are one factor among many that contributed to the financial crisis that began in 2007. High short-term profits led to generous bonus…

http://www.fsforum.org/publications/r_0904b.pdf

4. FSF Principles for Cross-border Cooperation on Crisis Management (02.04.2009 12:37) – PDF, 32266 bytes

FSF Principles for Cross-border Cooperation on Crisis Management

…the Financial Stability Forum and include a commitment to cooperation between relevant authorities, including supervisory agencies, central banks and finance ministries, both in making advanced preparations for dealing with financial</

http://www.fsforum.org/publications/r_0904c.pdf

5. Report of the Financial Stability Forum on Enhancing Market and … (02.04.2009 12:37) – PDF, 82322 bytes

Update on Implementation

… Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience Update on Implementation 2 April 2009

F I N A N C I A L S T A B I L I T Y F O R U M

Report of the Financial Stability Forum on

http://www.fsforum.org/publications/r_0904d.pdf

FINANCIAL STABILITY FORUM

FSF E-Mail Alert

www.fsforum.org

fsforum@bis.org

Wed 6/17/09

BANK FOR INTERNATIONAL SETTLEMENTS BIS REVIEW NO. 74: FINANCIAL SYSTEM STABILITY

BIS Review

Bank for International Settlements

BIS Review No 74 available

Press, Service (press@bis.org)

Publications, Service (Publications@bis.or

Wed 6/17/09

Please find BIS Review No 74 attached as an Adobe Acrobat (PDF) file.

Alternatively, you can access this BIS Review on the Bank for International Settlements’ website by clicking on http://www.bis.org/review/index.htm.

What’s included?

BIS Review No 74 (17 June 2009)

Christian Noyer: The macroeconomy and financial systems in normal times and in times of stress

Jean-Claude Trichet: The financial crisis and the response of the ECB

Kiyohiko G Nishimura: Financial system stability and market confidence

Daniel K Tarullo: Large banks and small banks in an era of systemic risk regulation

Gertrude Tumpel-Gugerell: Beyond the turmoil – rules, supervision and infrastructures

please e-mail press@bis.org.

BIS Review

Bank for International Settlements

BIS Review No 74 available

http://www.bis.org/review/index.htm

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Wed 6/17/09

BANK FOR INTERNATIONAL SETTLEMENTS BIS REVIEW NO. 73: REBALANCING THE GLOBAL ECONOMY

BIS Review

Bank for International Settlements

BIS Review No 73 available

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Tue 6/16/09

Please find BIS Review No 73 attached as an Adobe Acrobat (PDF) file.

Alternatively, you can access this BIS Review on the Bank for International Settlements’ website by clicking on http://www.bis.org/review/index.htm.

What’s included?

BIS Review No 73 (16 June 2009)

Mark Carney: Rebalancing the global economy

Martín Redrado: What’s wrong with the current framework of global financial architecture?

Caleb M Fundanga: Strengthening Zambia’s financial and private health sector

Barbro Wickman-Parak: The financial crisis – where do we stand today and where are we heading?

José Manuel González-Páramo: Address for the 2008 Bernácer Prize Award Ceremony in honour of Markus Brunnermeier

please e-mail press@bis.org.

BIS Review

Bank for International Settlements

BIS Review No 73 available

http://www.bis.org/review/index.htm

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Tue 6/16/09

DOLLAR VERSUS EURO AS RESERVE CURRENCY

Deutsche Bank Research

DB Research:

Norbert Walter: Are the US dollar’s days as

reserve currency numbered?

mailsystem.dbresearch@db.com

Wed 6/17/09

Dear reader,

We have just issued the following note which is available on our website under the heading “Talking point”:

Norbert Walter: Are the US dollar’s days as reserve currency numbered?

Chinese authorities recently proposed the end to the dollar’s time as a reserve currency. While this might indeed come true, observers should notice that it’s neither SDRs nor the yuan, it is the euro to gain importance for now and the coming decade…

Please find the complete text here:

http://www.dbresearch.com/MAIL/DBR_INTERNET_EN-PROD/PROD0000000000243040.xhtml

DB Research commentaries are now available as podcasts:

http://www.dbresearch.com/podcast_en

If you have any further questions, please do not hesitate to contact us:

Deutsche Bank Research

Marketing

marketing.dbr@db.com

Internet: http://www.dbresearch.en

Deutsche Bank Aktiengesellschaft Frankfurt am Main

DB Research

Norbert Walter:

Are the US dollar’s days as reserve currency numbered?

http://www.dbresearch.com/MAIL/DBR_INTERNET_EN-PROD/PROD0000000000243040.xhtml

mailsystem.dbresearch@db.com

Wed 6/17/09

FED SPEECH: CONTAINING THE CRISIS

Speech by Governor Duke on containing the

crisis and promoting economic recovery

Federal Reserve Board Notification

Mon 6/15/09

Speech by Governor Duke on containing the crisis and promoting economic recovery

At the Women in Housing and Finance Annual Meeting Washington, D.C.

http://www.federalreserve.gov/newsevents/speech/duke20090616a.htm

Released by the Board of Governors of the Federal Reserve System

Schedule of upcoming postings to the Board’s website

List of items posted to the Board’s website over the past two weeks

If you have any questions or problems e-mail support@govdelivery.com for assistance.

Visit us on the web at www.federalreserve.gov.

20th Street and Constitution Avenue NW · Washington DC 20551 · Phone: 202-452-3000

Speech by Governor Duke on containing the crisis and

promoting economic recovery

Federal Reserve Board Notification

Speech by Governor Duke on containing the crisis and promoting economic recovery

Board of Governors of the Federal Reserve System

Mon 6/15/09

BANK FOR INTERNATIONAL SETTLEMENTS BIS REVIEW NO. 72: THE ECONOMIC CRISIS

BIS Review

Bank for International Settlements

BIS Review No 72 available

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Mon 6/15/09

Please find BIS Review No 72 attached as an Adobe Acrobat (PDF) file.

Alternatively, you can access this BIS Review on the Bank for International Settlements’ website by clicking on http://www.bis.org/review/index.htm.

What’s included?

BIS Review No 72 (15 June 2009)

Mario Draghi: Financial stability in the global environment? Learning the lessons from the market crisis

John Hurley: Restoring stability to the banking system

Rakesh Mohan: Emerging contours of financial regulation – challenges and dynamics

Elizabeth A Duke: The systemic importance of consumer protection

Jürgen Stark: The economic crisis and the response of fiscal and monetary policy

please e-mail press@bis.org.

BIS Review

Bank for International Settlements

BIS Review No 72 available

http://www.bis.org/review/index.htm

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Mon 6/15/09