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Turkey to stick with floating lira

The governor of Turkey's central bank said Friday 12 May that the bank would maintain its floating currency system but was closely monitoring foreign currency market developments, the Anatolia news agency reported.

Chinese economists want increased gold reserves

Some Chinese economists are urging the government to increase its gold reserves to 2,500 tons from the current 600 tons because the country's foreign exchange reserves had become the world's largest, an official industry newspaper reported this week.

ECB pledges price stability, oil risks worsen

The article "ECB bankers pledge price stability, oil risks worsen" published Thursday 11 May says that the oil shock threatens to push up core inflation in the eurozone, a danger the European Central Bank ignores at its peril.

RBI's Reddy on global imbalances

In the speech 'Global imbalances - An Indian perspective' given on 11 May Dr.Y.V.Reddy of the Reserve Bank of India said any large adjustments in major currencies and global interest rates would have a significant impact on the economy.

Comment: Flawed convergence criteria?

Willem Buiter and Anne Sibert, two London-based academics, have slammed the Maastricht criteria for entry into the eurozone. They point to a number of inconsistencies in way the conditions are applied and suggest that the current formulation "makes no…

ECB's Trichet on European financial integration

In the speech 'The process of European financial integration' given on 11 May Jean-Claude Trichet of the ECB said European financial integration still lags behind, particularly in retail banking and financial infrastructure services, despite the progress…

Fed's Kohn on investing in payment innovations

In the speech 'Investing in payment innovations: A Federal Reserve perspective' given on 11 May Donald Kohn of the Federal Reserve said changing electronic payment systems benefit both institutions and consumers, but also expose them to new risks,…

National Bank of Belarus - Annual Report 2004

According to the National Bank of the Republic of Belarus's Annual Report 2004, the economic situation in 2004, on the whole, was characterised by a deceleration of inflationary and devaluation processes and higher rates of GDP growth.

China's yuan progress 'far too little'

The US government on Wednesday 10 May did not accuse China of manipulating the value of its currency, but said Beijing had made "far too little progress" in adopting a flexible exchange rate.

Comment: US Treasury diplomacy

In what has been billed as a key moment in American economic diplomacy, the US Treasury this week resisted temptation and political pressure by deciding not to formally accuse China of currency manipulation.

Fed raises rates to 5%

The Federal Open Market Committee decided Wednesday 10 May to raise its target for the federal funds rate by 25 basis points to 5 percent. In its statement the FOMC said "some further policy firming may yet be needed."

SARB Monetary Policy Review, May 2006

The South African Reserve Bank published its Monetary Policy Review for May 2006 on Thursday 11 May. Forecasts suggest that the inflation outlook has improved significantly, and there is evidence that inflation expectations and wage settlements are…

Norges Bank Economic Bulletin, April 2006

Norges Bank has published its April 2006 Economic Bulletin. The latest Bulletin includes: "Economic perspectives" address by Svein Gjedrem, "Projections, uncertainty and choice of interest rate assumption in monetary policy" address by Jarle Bergo, and …

ECB Monthly Bulletin, May 2006

The European Central Bank published its May 2006 Monthly Bulletin on Thursday 11 May. In the report the ECB reiterated its outlook that monetary and credit growth remains very dynamic in the euro area and strong vigilance is needed to ensure price…

The origins of bubbles in laboratory asset markets

The authors of this Atlanta Fed Working Paper, published May 2006, conduct experiments that are designed to investigate individual probability judgment error and speculative behaviour. They find that both factors contribute to the creation of asset price…

The little-noticed 'yet' in the Fed's statement

According to this article by John Berry, published Thursday 11 May, it was in the FOMC's statement explaining what may come next that "yet" appeared, signalling that after boosting the target at 16 consecutive meetings the committee probably will take a…

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