Tuesday, November 26, 2013

Helmut Schmidt and Jean-Claude Trichet discuss the European Crisis (video)

Published on Oct 30, 2012
Watch former German Chancellor Helmut Schmidt discuss the European crisis with former head of the European Central Bank Jean-Claude Trichet. The conversation was moderated by the investor and philanthropist Nicolas Berggruen.

This talk was held at the 'Europa nach der Krise' conference organised by the Nicolas Berggruen Institute on Governance in Berlin on 30th October 2012.

Source: http://www.youtube.com/watch?v=u_mji_h3GXE

ECB - A first assessment of the ECB's management of foreign reserve assets

I Current management OF foreign reserve assets at the ECB
I.1 Amount involved

"At the beginning of 1999, the NCBs participating in the euro area transferred foreign reserves worth approximately EUR 40 billion to the ECB. These foreign reserves are now owned by the ECB and appear on its balance sheet.

More specifically, Article 30.1 of the Statute of the European System of Central Banks and of the European Central Bank provides for transfer from the NCBs to the ECB of foreign reserve assets up to an amount equivalent to EUR 50 billion; in addition, it is envisaged that the conditions and the limits permitting the ECB to make further calls on the NCBs’ foreign reserve assets will be defined in secondary legislation of the European Community. The ECB has put forward a Recommendation in this respect, which is currently being examined.

With regard to the initial transfer of the foreign reserves, the Governing Council decided that it should take place at the very beginning of 1999; the Governing Council also decided that the initial transfer would be for the permitted maximum amount of EUR 50 billion, adjusted downwards by deducting the shares in the ECB’s capital subscription key of those EU central banks that did not participate in the euro area from the outset. The transfer was therefore equal to 78.91% of EUR 50 billion, i.e. approximately EUR 39.46 billion. Fifteen percent of this transfer was effected in gold and 85% in the major foreign currencies, i.e. US dollars and Japanese yen.


Foreign reserves represent a very large share of the asset side of the ECB’s balance sheet. The ECB’s foreign reserves have increased since the initial transfer in euro, primarily as a result of revaluations, but they also reflect the accrual of income from reserve management operations."
...

I.3 Passive management
The currency distribution, i.e. the shares in the ECB’s foreign reserves in the different currencies, expressed as percentages, is kept stable. That currency distribution is defined by the Governing Council of the ECB. While the Governing Council might decide to change the currency distribution if deemed appropriate, there is no active management of the currency distribution in order to avoid any interference with the single monetary policy.

In accordance with the Agreement of 26 September 1999, signed by many of the EU central banks, including the Eurosystem, the ECB (and the entire Eurosystem) will not increase its gold leasing operations and its use of gold futures and options.


Source: http://www.ecu-activities.be/documents/publications/publication/2000_1/rueff.html

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Sunday, November 17, 2013

WGC - The Euro, The Dollar and Gold

Proceedings of the Conference
held in Rome
17th November 2000


CONTENTS
FOREWORD by Haruko Fukuda ........................................................................................... 5
LIST OF SPEAKERS ................................................................................................................ 7
THE EURO, THE DOLLAR AND GOLD
by Antonio Fazio, Governor, Banca d’Italia ........................................................................ 11
English translation ............................................................................................................ 17
THE RELATIONSHIP BETWEEN CURRENCIES AND GOLD
by Robert Mundell .......................................................................................................... 23
BUILDING CONFIDENCE IN CURRENCIES AND THE EXCHANGE RATE SYSTEM
by Theo Waigel ................................................................................................................ 32
LESSONS OF ECONOMIC HISTORY
by Peter Bernholz ............................................................................................................. 38
GOLD BACKING FOR CURRENCIES - THE ROLE OF CURRENCY BOARDS
by Steve Hanke ................................................................................................................ 42
OBSTACLES TO GOLD FULFILLING ITS POTENTIAL - THE PROBLEM OF THE IMF’S ARTICLES
by Dick Ware ................................................................................................................... 46
A VIEW FROM JAPAN
by Yukio Yoshimura ......................................................................................................... 51
Panel Discussion .............................................................................................................. 52
THE ROLE OF GOLD IN EXTERNAL RESERVE MANAGEMENT
Introduction by Giacomo Panizzutti .................................................................................. 55
DOES CENTRAL BANK LENDING AFFECT THE GOLD PRICE?
by Anthony Neuberger ..................................................................................................... 56
A NEW ROLE FOR GOLD
by Hervé Ferhani ............................................................................................................. 61
Panel Discussion .............................................................................................................. 67
THE FUTURE OF GOLD BANKING
Introduction by Antonio Martino ..................................................................................... 69
NEW FRONTIERS IN GOLD BANKING
by Ian McCannah ........................................................................................................... 71
NEW MONEY FOR THE NEW ECONOMY
by Douglas Jackson .......................................................................................................... 82
Panel Discussion .............................................................................................................. 91
THE CASE FOR A GOLD EURO COIN
Chaired by Antonio Martino ............................................................................................ 95
Philippe Sassier ................................................................................................................ 95
Peter Schmidhuber ........................................................................................................... 97
Tom Butler ...................................................................................................................... 98
Edmond Alphandéry ..................................................................................................... 100
Questions and comments ............................................................................................... 104
CLOSING REMARKS by Robert Pringle ............................................................................... 107

Source: http://www.gold.org/search/site/RomeProceedings.pdf

Tuesday, November 5, 2013

BdF - International Symposium of the Banque de France Regulation in the face of global imbalances Programme

Friday 4 March 2011

Global imbalances, in particular the polarisation of current account deficits and surpluses, have increased during the 2000s, until the outbreak of the financial crisis. As underlined by G20 heads of States and Government: “inconsistent and insufficiently coordinated macroeconomic policies, inadequate structural reforms […] led to unsustainable global macroeconomic outcomes.” (summit on financial markets and the world economy, Washington, November 15, 2008). This leads to today’s key question of regulation in the face of global imbalances.

This international symposium, organised by the Banque de France, will bring together a wide group of central bank governors, leading academics from all over the world as well as senior officials of major financial institutions and international organisations. The participants will debate themes that are relevant to the G20 French presidency, such as the reform of the regulation of the international monetary and financial system or the progress in the coordination of economic and financial policies.


Source: http://www.banque-france.fr/en/economics-statistics/research/seminars-and-symposiums/international-symposium-of-the-banque-de-france-regulation-in-the-face-of-global-imbalances/international-symposium-of-the-banque-de-france-regulation-in-the-face-of-global-imbalances-programme.html