News
Bloomberg | EU Banking Plans Asks ECB to Share Power, Documents Show
The U.K. is pressing for the European Central Bank to share power with national regulators as it takes over euro-region bank supervision, according to policy- planning documents obtained by Bloomberg News.
Bloomberg | China Reluctance on Reserve Cut Signals Inflation Concern
China’s slower-than-forecast cuts in banks’ reserve requirements show authorities are reluctant to shake their concern inflation will quicken, three months after Premier Wen Jiabao shifted priorities to boosting growth.
Econ Comments & Analysis
Bloomberg | Fed’s Dudley Backs Overhaul of Money Fund Rules
William C. Dudley, president of the Federal Reserve Bank of New York, said new rules are needed to protect the financial system from a run on money-market mutual funds, lending his support to a regulatory overhaul proposed by U.S. Securities and Exchange Commission Chairman Mary Schapiro.
NBER | The Economics of Options-Implied Inflation Probability Density Functions
Recently a market in options based on CPI inflation (inflation caps and floors) has emerged in the US. This paper uses quotes on these derivatives to construct probability densities for inflation.
