BIS Quarterly Review, June 2012
The BIS Quarterly Review for June 2012: returning doubts drive up financial market volatility. The June issue also provides highlights from the latest BIS data on international banking and financial activity.
Statistical tables:
- Summary tables (PDF, 18 pages, 172 kb)
- Detailed tables (PDF, 147 pages, 1,088 kb)
International banking and financial market developments
Special features
Emerging market economies (EMEs) have historically faced challenges in implementing countercyclical policies. However, the policy environment has changed. This paper finds evidence that EMEs were able to conduct countercyclical monetary and fiscal policies over the past decade. Indeed, the EMEs that have leaned more heavily against the business cycle have generally used both monetary and fiscal tools to do so.
More...It is widely held that currencies of surplus countries, such as China, cannot enjoy wide international use. We argue that the eurodollar market has had little to do with the direction of net capital flows or the US current account balance. It has played different roles over the past 38 years, most of all intermediation among non-US residents. Looking at the eurodollar market could help predict the evolution of the offshore renminbi market. Even if it now mainly serves as a conduit of funds to mainland China from abroad, in the future this market, too, could mainly intermediate between non-Chinese residents.
More...Central bank balance sheets in emerging Asia expanded rapidly over the past decade because of the unprecedented rise in foreign reserve assets. The corresponding expansion of the central banks' liabilities has created dangers - risks of inflation and financial instability and financial market distortions - that require attention.
More...