Archive for July 10th, 2019

Bank of England completes 325 years: An anniversary exhibition showing 325 objects

July 10, 2019

Bank of England formed on 27 July 1694, will soon be celebrating its 325 years!

Jennifer Adam, Curator of the Bank of England Museum in this article points how the museum plans to celebrate the event:

The Bank of England officially came into being on the 27 July 1694, with the signing of its Royal Charter. Over 300 years later the Bank of England is the United Kingdom’s central bank, at the centre of a complex financial system, with well‑established roles in maintaining financial and monetary stability and regulating other parts of the banking system. It is also an employer, a body of staff, a workplace, and a building that has evolved through periods of industrial, technological and social revolution.

In July 2019, the Bank of England Museum will mark this anniversary with a new temporary exhibition, 325 years, 325 objects. Each section of the exhibition will provide a glimpse into an era of the Bank’s work and its social history, featuring many objects that haven’t been displayed before. At the centre of the exhibition is a new and unique artwork commission, which will become a permanent part of the Bank of England’s collections.

This article looks at some of the exhibition’s key themes, including changes in the way payments are made and aspects of life at the Bank. It is not a comprehensive catalogue of what is on display but a selection of highlights from the social history of the Bank since its foundation.

One of the key aims for this exhibition was to show a more diverse cast of characters from the Bank’s history. In particular, we wanted to include stories that reflected the presence of women at the Bank as both investors and, later, as staff. Developing this exhibition has revealed some lesser known stories within our collections and has highlighted gaps that we hope to address in future.

Those in London, should make visiting BoE museum part of the itinerary…

SEBI employees oppose government’s involvement in its finances

July 10, 2019

I wrote about how the Budget has proposed that SEBI should transfer 75% of its surplus each year to the Government.

Hindu Business Line reports that SEBI’s employees are opposing the move:

SEBI employees are up in the arms against Finance Minister Nirmala Sitharaman. In a strongly worded letter to FM, the association of SEBI employees have opposed a proposal in the Budget that seeks to transfer 75 per cent of the regulator’s surplus funds to government coffers by terming it as additional tax on market participants.

Also, the letter calls FM’s proposal to subject Securities and Exchange Board of India (SEBI) to seek government approval for its annual expenditure as regressive. BusinessLine has the copy of the letter.


ECB’s new chief economist Philip Lane answers questions on Twitter

July 10, 2019

This is really cool stuff from ECB. Earlier chief economist Peter Praet also engaged in similar Twitter conversation, but I think the new chief economist Philip Lane does better at it.

May be RBI could try this as well…


Lagarde as ECB head: Germans are divided on the appointment..

July 10, 2019

Nice piece by David Marsch in OMFIF:

In the drawn-out annals of Franco-German wrangles over economic and monetary union, last week’s deal over top European posts, including the presidency of the European Central Bank, stands out as a landmark French triumph. President Emmanuel Macron has exploited Chancellor Angela Merkel’s political weakness by pushing through a solution that gives France strong levers of control over European money – and provides Germany with only scant rewards in return.

There are some constructive aspects. The nomination of Christine Lagarde, International Monetary Fund managing director, to succeed Mario Draghi on 1 November has been greeted by some in Germany as providing a much-needed boost to the ECB’s status.

A high-profile policy-maker with a brisk collegiate organisational style brings to Frankfurt a track record in handling crises. In contrast to Draghi, who has kept a low profile on the wider Frankfurt scene, Lagarde will install glamour and a touch of show business in the German financial capital. She will add to the city’s appeal to international financial firms after Britain’s departure from the European Union.

Other interpretations, for the Germans, are less positive. Officials point to the unbalanced nature of last week’s agreement. Lagarde’s appointment, scotching German hopes that the job would go to Bundesbank President Jens Weidmann, looks certain to go through the political approval process. The other important part of the deal, nomination as European Commission president of Ursula von der Leyen, the trouble-plagued German defence minister, is not secure, since she could fall victim to an increasingly strong-willed European Parliament.

Lagarde’s policy stance at the IMF, supporting both quantitative easing through ECB asset purchases and growth-boosting German fiscal activism, will now be enshrined and enhanced at the centre of European decision-making. The view from Frankfurt is that Lagarde will put on hold indefinitely much-heralded monetary ‘normalisation’. So there will be no end to ultra-easy policy and no interest rate rises to alleviate what German economists say are dangerous ECB-induced distortions in the financial system.

Safeguarding the euro in times of crisis: The inside story of the European Stability Mechanism (ESM)

July 10, 2019

In the backdrop of European sovereign debt crisis, the leaders first established European Financial Stability Facility in 2010 followed by European Stability Mechanism in 2012.

ESM has released a book (free pdf available) reflecting on the experiences of establishing the facility and so on:

Global financial leaders and ESM insiders provide a rich stock of perspectives and anecdotes that bring to life the urgency of the euro area crisis as well as the innovative solutions found to resolve it. As Europe strives to further strengthen its financial architecture, this books provides important lessons for future crisis management.
Should be a good read…

From optimal currency areas to digital currency areas..

July 10, 2019

Markus K Brunnermeier, Harold James and Jean-Pierre Landau envisage that we will have digital currency areas in future:

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