Economics
Chinese ratings agency yanks triple-A ratings from US, UK
China’s Dagong Global saddles developed world safe havens with lower ratings on grounds of inability to repay debt; gives China three notch upgrade to AA+
Richmond Fed raises the curtain on the “Fed Experience”
Richmond Federal Reserve gears up for opening of its new permanent exhibit; features interactive displays and commentary on major economic events from Ben Bernanke, Paul Volcker
SNB: Firms factor in effort when determining wages
Swiss National Bank study shows workers derive a psychological benefit from reciprocating a generous wage offer by the firm with harder work
Taking the credit in eastern Europe
Need for credit higher in eastern, than western, Europe, Swiss National Bank research finds
Four risks to growth: Atlanta Fed’s Lockhart
Atlanta Federal Reserve president Dennis Lockhart counts Gulf of Mexico oil spill and commercial real estate sector risks among imminent threats to growth
Trichet on World Cup: I don't mind who wins
Jean-Claude Trichet refuses to declare favourite as two eurozone members vie to scoop soccer's top prize
BIS: currency collapses benefit output growth
Bank for International Settlements study on currency collapses finds devaluation helps growth in the long run, rather than dampening it
RBA: standard Phillips curve better measure of inflation than New Keynesian version
Reserve Bank of Australia study finds traditional Phillips curve model outperforms New Keynesian version in measuring inflation
RBA: Australia’s employment boom had no impact on joblessness
Reserve Bank of Australia study finds labour growth in the past decade served those outside labour force, but not unemployed skilled workers
Azerbaijan to move to DSGE model
National Bank of Azerbaijan will switch to consolidated DSGE framework by year-end; deputy research director says model valued for overall coherence and ability to factor in irrational behaviour
Microfinance not a silver bullet for Africa: Nigeria, Ghana governors
Nigerian governor Sanusi Lamido Sanusi and Ghanaian chief Kwesi Bekoe Amissah-Arthur say credit issuance is constrained by factors other than just access; requires deeper change
Faith in Fed's omnipotence must be challenged, says Rajan
University of Chicago professor and former IMF chief economist Raghuram Rajan slams view that Federal Reserve can “wave a magic wand” to cure United States’ economic ills
Expectations drive house prices
Bank of Spain research finds expectations on both monetary policy and future productivity influence house prices
EXCLUSIVE: We must review how monetary policy impacts prices, says Plosser
President of Philadelphia Fed says central bankers need to rekindle research into monetary transmission in order to better understand relationship between monetary policy and inflation
Interview: Charles Plosser
President of the Philadelphia Federal Reserve tells Central Banking Publications why central banks must review how monetary policy translates into inflation; warns against viewing monetary institutions as omnipotent
Boston Fed on expectations, output and inflation
Research from Boston Federal Reserve shows low marginal cost presses down on inflation even when central bank’s explicit inflation target is clearly communicated and understood
Fed’s Warsh: market panic a signpost, not source of global economic woes
Market volatility merely a signal of how far we are away from the new normal; warns against expecting monetary and fiscal policy to do too much
IMF: Structural reforms will strengthen Mauritius’ balance sheets
IMF study of Mauritian economy shows economic fundamentals are strong but economy continues to remain vulnerable to global developments
Italy’s Draghi warns against protectionist measures
Bank of Italy governor Mario Draghi says trade relations have been set back due to financial crisis, leading to more protectionism
St Louis Federal Reserve: African Americans have endured economic disadvantage
A St Louis Federal Reserve study compares the economic progress of African Americans against white Americans and finds significant differences in access to labour markets
Bank of Japan details direct lending programme
Central bank outlines $33 billion quasi-fiscal programme to support economic growth; analysts say measure is a political gesture
Low savings widened Southern Europe's fiscal gap: IMF paper
Fund study finds lack of savings in Southern European countries caused large current account deficits to form in the run-up to the global financial crisis
External debt could prove perilous: NZ’s Bollard
Reserve Bank of New Zealand governor Alan Bollard cautions that the country faces external debt imbalances; calls for deficits to be slashed below 5% of GDP
RBA: Australian bond market weathered financial crisis very well
Reserve Bank of Australia study shows Australia’s bond markets functioned well during the financial crisis