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Macroprudential policy, monetary policy and non-bank financial intermediation

10/02/2025 European Central Bank Central banks

This paper examines the interplay between macroprudential policy, monetary policy and the non-bank financial intermediation (NBFI) sector, drawing on recent research and zooming in particularly on evidence from the euro area2. It documents the growth in the NBFI sector over the past two decades and its particular role in financing the real economy, assesses systemic risks that can emanate from the sector, considers how it interacts with monetary policy, and discusses the implications for macroprudential regulation.

Is China’s reported ban on BHP a bluff, or a glimpse of the future?

10/02/2025 The Conversation News & Comments

Auscape/GettyThough they still haven’t been officially confirmed, reports China’s state-owned buyer told steelmakers to stop purchasing iron ore from Australian mining giant BHP have rattled both markets and Canberra.

Spencer Pratt Lost His House in the Palisades Fire and Thinks Gavin Newsom Should Take the Blame

10/01/2025 New York Times USA

After losing his house in the Palisades fire, Spencer Pratt has gone from the archetype of celebrity emptiness to community activist — and become a magnet for Republican politicians.

The UK has a regional inequality problem – levelling the playing field for entrepreneurs could help

10/01/2025 The Conversation UK

Monster Ztudio/ShutterstockRegional inequality is a long-standing problem in the UK that successive governments haven’t been able to get to grips with. The Labour government is aiming for economic growth, but this will only happen by boosting the UK’s regions and nations along with London and south-east England.

A Tech Expo Shows What China Can Make, but Not Who’ll Buy It All

10/01/2025 New York Times USA

The vast Global Digital Trade Expo in Hangzhou stood as a rebuke to U.S. efforts to hem in China’s technology. But the real competition is internal, and profits are hard to find.

Tariffs may bring a US$50 billion monthly boost to the US government. But ordinary Americans won’t feel the benefit

10/01/2025 The Conversation UK

Sundry Photography/ShutterstockDonald Trump’s recent state visit to the UK ended without the removal of steel tariffs, which the host nation had been hoping for. For months, the US president’s array of “liberation day” tariffs have sparked controversy and caused chaos for America’s trading partners.

Conventional anti-corruption tools often fail to address root causes – but loss of US leadership could still spell trouble for efforts abroad

10/01/2025 The Conversation USA

President Donald Trump signs a series of executive orders on Feb. 10, 2025, including an order relating to the Foreign Corrupt Practices Act. Andrew Harnik/Getty ImagesFor nearly half a century, the Foreign Corrupt Practices Act has made it illegal for U.S. citizens and companies to bribe foreign officials.

Government faces pushback on labour law amid lukewarm response to tax cuts

10/01/2025 Macropolis European Union

Unions are calling on the government to come to the negotiating table over controversial labour reforms, including a 13-hour working day, which they claim will endanger workers.

The impact of capital requirements on bank capital

10/01/2025 European Central Bank Central banks

This paper presents the first causal evidence on how banks adjust their voluntary capital buffers (the capital headroom above the required level) in response to changes in capital requirements. Using granular euro area data and exploiting the threshold-based assignment of Other Systemically Important Institution (O-SII) buffers within a regression discontinuity design, we study the liability side of banks’ balance sheets, complementing the asset-focused literature on lending and risk-taking.

Durability, essentiality, and the transmission of monetary policy to household consumption

10/01/2025 European Central Bank Central banks

In this paper, we examine how different household consumption items respond to monetary policy shocks in the euro area. Specifically, we classify household consumption along two key dimensions: durability and essentiality. Our findings reveal pronounced heterogeneity in responses across these dimensions. First, durable items are highly sensitive to monetary policy shocks, whereas non-durable items exhibit weaker responses. Second, non-essential items react more strongly than essential items.

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