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Dan Hinge @danhinge.bsky.social · 6d

Tim Harford v good on digital ID www.ft.com/content/b7c2...

In defence of digital ID

Well-designed, it could strengthen the protection of important liberties

www.ft.com

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Dan Hinge @danhinge.bsky.social · 8d

*important caveat to the above: the US dollar is very much dominant still in both the exchange-traded rate derivative market (bigger than OTC) and the FX market.

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Dan Hinge @danhinge.bsky.social · 8d

Also quite interesting, the euro is now top dog in the OTC interest rate derivatives market, overtaking the US dollar. The market as a whole has taken a big pivot away from the US and also grew 59%, with sterling and yen also registering massive rises.*

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Dan Hinge @danhinge.bsky.social · 8d

This may have been a tiny bit influenced by the fact that the BIS collected the data in the middle of April's 'liberation day' fun and games. We'll have to wait until December for the BIS to publish their full assessment of what's driving the numbers.

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Dan Hinge @danhinge.bsky.social · 8d

Pleased to confirm that the gobsmackingly huge number is $9.6 trillion daily FX turnover www.centralbanking.com/central-bank...

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Dan Hinge @danhinge.bsky.social · 8d

@lkoro.es spoke to the ECB’s Evelien Witlox about the digital euro. Lots of really interesting detail in here about the sorts of design choices that are now getting close to being finalised www.centralbanking.com/fintech/cbdc...

ECB’s Evelien Witlox on design choices for the digital euro - Central Banking

The digital euro’s program director speaks about holding limits, waterfall arrangements, programmability, blockchain usage and offline ‘secure elements’ for

www.centralbanking.com

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Reposted by Dan Hinge

Central Banking @centralbanking.bsky.social · 9d

ECB publishes report on use cases for digital euro www.centralbanking.com/fintech/cbdc...

ECB sheds light on uses for a digital euro - Central Banking

‘Sandbox’ participants speak of largely positive experiences with prototype CBDC

www.centralbanking.com

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Dan Hinge @danhinge.bsky.social · 9d

I usually roll my eyes when someone says the word 'blockchain' but Swift has a huge network so this is worth keeping an eye on www.centralbanking.com/central-bank...

Swift to build blockchain-based global payments infrastructure - Central Banking

Partnership with 30 banks will be ‘pivotal’ for global finance, payments messaging network says

www.centralbanking.com

Dan Hinge @danhinge.bsky.social · 9d

Turkey has tied itself in knots trying to avoid having to do standard inflation targeting. The result has been some very innovative (and equally foolhardy) policies... www.nber.org/papers/w34287

Türkiye's Homemade Crises

Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, an...

www.nber.org

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Dan Hinge @danhinge.bsky.social · 9d

Interesting idea from Logan here - target the triparty GC repo rate rather than the federal funds rate www.centralbanking.com/central-bank...

Logan says FOMC should cut ties with federal funds rate - Central Banking

Dallas Fed chief says repo markets are better alternative to ‘outdated’ target

www.centralbanking.com

Dan Hinge @danhinge.bsky.social · 11d

Love Louise Hayward's etchings of London. Here's one we have of scaffolding on Trellick Tower

Scaffolding on Trellick Tower, a print by Louise Hayward, framed and on the wall of my flat.

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Dan Hinge @danhinge.bsky.social · 14d

Given that a lack of transparency was a big part of the spectacular screw-up that just took place, the appointment of a top official from one of the world's most transparent central banks is probably not an accident. The RBNZ has some serious reputational damage to repair.

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Dan Hinge @danhinge.bsky.social · 14d

Fun pullquote in this story on central bankers' legal immunity www.centralbanking.com/benchmarking...

Pullquote with the text "It's bloody difficult to sue the Bank of England for anything", a quote from John Gieve, former BoE deputy governor

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Dan Hinge @danhinge.bsky.social · 14d

Riksbank's Anna Breman is the new governor of the RBNZ, the first time a woman has held the role: www.centralbanking.com/central-bank...

Riksbank’s Breman chosen to head RBNZ - Central Banking

New Zealand central bank’s first female governor recruited from Sweden following Orr debacle

www.centralbanking.com

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Dan Hinge @danhinge.bsky.social · 22d

Original article here: www.bis.org/publ/qtrpdf/...

Monetary policy operational frameworks - a new taxonomy

A new BIS taxonomy explores how central banks' operational frameworks influence banks' incentives, liquidity management and financial system outcomes.

www.bis.org

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Dan Hinge @danhinge.bsky.social · 22d

For example, what links the operating frameworks of Riksbank, RBA and Bank of Canada? Well, they all have moderate levels of reserves in the system and also moderate marginal cost of reserves, which puts them kind of in the middle between floor and corridor systems.

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Dan Hinge @danhinge.bsky.social · 22d

One for the monetary operating framework nerds - the BIS has built a new taxonomy and finds some "surprising similarities" in apparently different models www.centralbanking.com/central-bank...

New taxonomy of operating frameworks from BIS economists - Central Banking

Two-dimensional approach captures “surprising similarities” between different methods

www.centralbanking.com

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Reposted by Dan Hinge

Robert Armstrong @robarmstrong.bsky.social · 25d

Unhedged chart of the week; Pity the poor Fed
via @hakyungkim.bsky.social
Sign up for COTW here: ep.ft.com/newsletters/...

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Reposted by Dan Hinge

Tony Tassell @tonytassell.bsky.social · 25d

On the Lisa Cook allegations www.ft.com/content/e32d...

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Dan Hinge @danhinge.bsky.social · 29d

I know I know, late to the party

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Dan Hinge @danhinge.bsky.social · 29d

Gah, why did the BoE have to publish its proposals for the gilt repo market when Thomas and I were both on leave? www.bankofengland.co.uk/paper/2025/d...

Enhancing the resilience of the gilt repo market

Discussion paper

www.bankofengland.co.uk

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Dan Hinge @danhinge.bsky.social · Sep 8

I may have mentioned once or twice that I'm fairly sceptical of AI, but this paper by Anton Korinek challenged me on that. Some pretty powerful tools available to economists on his telling www.centralbanking.com/central-bank...

AI agents are ‘transformative’ for economic research – NBER paper - Central Banking

‘Capability spiral’ is leading to rapid improvements, author says, though risks remain

www.centralbanking.com

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Dan Hinge @danhinge.bsky.social · Sep 8

Project Nexus looks like one of the most promising ways of improving cross-border payments. My colleague Jono spoke to the new CEO - full interview to follow in the coming days www.centralbanking.com/central-bank...

Nexus will connect at least three Asian countries by 2027 – CEO - Central Banking

Company expects to announce winning bidder for contract to build payments platform by year’s end

www.centralbanking.com

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Reposted by Dan Hinge

Hetan Shah @hetanshah.bsky.social · Aug 30

‘So if there is flight from the dollar… we would… be in a world where there's not enough liquidity to go around to finance global transactions as we know them. And that's a 1930s style scenario.’ @b-eichengreen.bsky.social talks to @pkrugman.bsky.social
paulkrugman.substack.com/p/talking-wi...

Talking With Barry Eichengreen

Crises, the dollar and more

paulkrugman.substack.com

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Dan Hinge @danhinge.bsky.social · Aug 27

I can see uses, e.g. a chatbot helping people access information about workplace disputes. But the idea of settling those disputes with AI ... argh