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Indonesian governor questioned

Burhanuddin Abdullah, the governor of Bank Indonesia has been questioned over an alleged corruption case which the country's powerful Corruption Eradication Commission believes involves the central bank.

China's inflation rises steeply

China's inflation rose at the quickest rate for over 11 years after the worst blizzard in half a century disrupted the country's food supplies, paralysing transport and destroying crops.

EU rules may scupper Northern Rock plan

A European Commission official said that if the British government continues to provide support for Northern Rock beyond 17 March, which under the plans for the nationalisation of the bank announced this week seems inevitable, it will have to prove that…

Carney point finger at China in first speech

Mark Carney, in his first speech as governor of the Bank of Canada, said that China is partly responsible for the subprime disaster that has dragged North America into a slump and disturbed financial markets around the world.

Australia considered bigger rise

Minutes from the February board meeting of the Reserve Bank of Australia show that the central bank considered raising its cash target by a bigger margin than the quarter percentage point rise announced on 5 February.

Mixed results for inflation targeting

A study by the Bank of Canada finds that the ability of inflation-targeting central banks to hit their targets varies considerably. The study, published in the Bank of Canada's Winter Review, looked at 21 countries over the period 1990 to 2007.

Fed's Evans sees pause in rate cuts

Charles Evans, the president of the Chicago Federal Reserve Bank, said that the recent interest rate reductions taken by the Fed should be sufficient to help promote moderate growth over time and mitigate the risks to economic activity.

Dynamic pricing and imperfect common knowledge

This paper by Kristoffer Nimark of the Reserve Bank of Australia introduces private information into the dynamic pricing decision of firms in an otherwise standard new Keynesian model by adding an idiosyncratic component to firms' marginal costs.

Mishkin on Fed flexibility

In a speech on 15 February, Fed governor Frederic Mishkin explained how the Federal Reserve has used four different tools to accomplish its objectives of achieving price stability and maximum employment in recent months.

Poland targets ERM-2 by 2011

Marian Noga, a member of the ten-strong council of the Polish central bank, said on Monday that Poland should join the ERM-2 exchange rate mechanism in 2011.

Reserve managers look to derivatives

A survey by Central Banking Publications, sponsored by the Royal Bank of Scotland, has found that central bank reserve managers are still searching for yield after the recent credit turmoil, and that over half of those surveyed see derivatives as an…

Northern Rock to be nationalised

Alistair Darling, the British chancellor of the exchequer, has announced that Northern Rock will be put into public ownership - the first nationalisation of a sizeable British bank for 25 years.

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