BIS central bankers’ speeches  References Abel, J, Deitz, R and Su, Y (2014), “Are recent college graduates finding goods jobs?”, Federal Reserve Bank of New York Current Issues in Economics and Finance, 20(1). Albanesi, S (2007), “Inflation and inequality”, Journal of Monetary Economics, 54(4), May, pages 1088–114. Alesina, A, Di Tella, R and MacCulloch, R (2004), “Inequality and happiness: are Europeans and Americans different?”, Journal of Public Economics, 88(9-10), pages 2009– 42. Atkinson, A and Morelli, S, (2014), “Chartbook of Economic Inequality”, ECINEQ Working Paper 324. Autor, D, Katz, L and Krueger, A (1998), “Computing inequality: have computers changed the labour market?” Quarterly Journal of Economics, 113(4), pages 1,169–213. Autor, D, Katz, L and Kearney, M (2008), “Trends in US wage inequality: revising the revisionists”, Review of Economics and Statistics, 90(2), May. Baldacci, E, L de Mello, and G Inchauste (2002), “Financial Crises, Poverty, and Income Distribution”, Working Paper 02/4, International Monetary Fund, Washington, DC. Barton, D and Wiseman, M (2014), “Focusing capital on the long term”, Harvard Business Review, January-February. Carney, M (2013), “Rebuilding Trust in Global Banking”, Speech at the Richard Ivey School of Business, 25 February. Available at http://www.bankofcanada.ca/2013/02/rebuilding-trustglobal-banking/ Clark, E (2012), Remarks delivered at the Bank of Canada Annual Economic Conference, “Financial Intermediation and Vulnerabilities,” Ottawa, 2 October 2012. Corak, M (2013), “Income inequality, equality of opportunity, and intergenerational mobility”, Journal of Economic Perspectives, 27(3), Summer. Easterly, W and Fischer, S (2001), “Inflation and the poor”, Journal of Money, Credit and Banking, 33(2), May.
The FSB is developing proposals, for the G20 summit in Brisbane, on total loss absorbing capacity for institutions, so that private creditors stand in front of taxpayers when banks fail. In addition, we are working with industry to change derivative contracts so that all counterparties stay in while resolution of a failing firm is underway. Second, creating fair and effective markets In recent years, a host of scandals in fixed income, currency and commodity markets have been exposed. Merely prosecuting the guilty to the full extent of the law will not be sufficient to address the issues raised. Authorities and market participants must also act to re-create fair and effective markets. In the Bank of England’s view, changes to both the hard and soft infrastructure of markets will be required. Examples of the former include reforming the calculations of benchmarks such as Libor or the daily foreign exchange fixes. The upcoming FSB report on these issues, co-chaired by the Financial Conduct Authority’s (FCA) Martin Wheatley and the Fed’s Jeremy Stein, will be decisive in this regard. Consideration should also be given to increasing pre- and post-trade transparency in a host of fixed income markets and accelerating the G20 pledge to move the trading of all standardised derivatives onto electronic exchanges and platforms. BIS central bankers’ speeches  5  Such changes are vital, but they cannot anticipate every contingency or discipline every miscreant. The scandals highlight a malaise in corners of finance that must be remedied.