Archive for March 7th, 2019

First Trust bank to stop printing its own banknotes from 30 June 2022 onwards

March 7, 2019

In UK and related territories, banknotes are issued by players other than Bank of England. They are issued in Sterling Pounds and have same value as  BoE notes but the issuer is different.

Thus in Northern Ireland, there are 4 such banks that issue their own banknotes:

  • Bank of Ireland
  • First Trust Bank
  • Danske Bank
  • Ulster Bank

First Trust Bank has announced it will stop issuing its own banknotes from 30 Jun 2022 onwards. Its ATMs will issue BoE notes:


First conference on women in macroeconomics

March 7, 2019

The conference on women in macroeconomics was organised last year.

Twenty-five women economists met May 17-18 at the University of California, Santa Barbara, for the First Women in Macroeconomics ConferenceAlessandra Fogli, senior research economist at the Minneapolis Fed, was a conference co-organizer. Doireann Fitzgerald, also a Minneapolis Fed senior research economist, presented her research on “How Exporters Grow.” And Minneapolis Fed monetary advisor Cristina Arellano was a discussant on international macro. We sat down with these three Minneapolis Fed economists to learn more about this groundbreaking meeting. Comments have been edited for length and clarity.

Doireann Fitzgerald says:

Male economists rarely walk into the room and think, “Oh, I’m in a minority here.” Most of us have that experience every single time we go to a conference, and other sorts of minorities have that experience too. Maybe it doesn’t stop you from doing your job, but it’s kind of an eye-opening moment to walk into the room and see and feel that you are actually in the majority. This looks different. I was involved in organizing a conference several years ago, and when we realized it was 50/50, that was also sort of an eye-opening moment because it is not the norm.


China’s Quiet Revolution in Central Banking…

March 7, 2019

Nice article by Miao Yanliang, member of China Finance 40, a Beijing think tank. He points how People’s Bank of China is undergoing changes under their new chief Yi Gang.

…the People’s Bank of China (PBOC) is undergoing its own quiet revolution. Like the Fed before it, China’s central bank is becoming more communicative. But the real revolution in Beijing concerns exchange-rate policy, with the PBOC increasingly allowing market forces to determine the renminbi’s value. Both developments are welcome.

The PBOC’s communication offensive has much to do with its new governor, Yi Gang, who was appointed in March 2018. Last month, the bank hosted its first-ever briefing to explain the latest economic and monetary data. And Yi himself has taken the initiative to explain policy decisions, notably his “three arrows” to support funding for small and medium-size enterprises. The governor also occasionally weighs in about stock-market volatility, even though such interventions may raise eyebrows among central-banking traditionalists.

Another significant move came in January, when the PBOC unveiled a new version of its English-language website. Previously, only about 2% of the Chinese site’s content was available in English, prompting foreign investors to complain about an uneven playing field. But the bank’s new English site covers almost every major aspect of policy, from open-market operations and decisions to the governor’s speeches and activities. For example, it features Yi’s speech last December at Tsinghua University on China’s monetary policy framework, together with an English version of his original PowerPoint slides, which are not available in Chinese on the PBOC’s site.

Although this open communication is certainly important, the PBOC’s increasingly flexible exchange-rate policy is far more transformative. In 2015-2016, the PBOC spent about $1 trillion of China’s foreign-exchange reserves to prop up the depreciating renminbi. These days, the PBOC no longer intervenes regularly in the currency market, and does not have an exchange-rate target.

I just checked PBOC’s new website in English. A big improvement indeed. Lots of interesting stuff to explore..


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