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EU bends budget rules for Germany, France
A proposal to suspend the sanctions mechanism of the stability and growth pact for France and Germany was agreed on Tuesday 25 November by eurozone finance ministers, acording to Reuters. A declaration by the Ecofin council, meeting in Brussels, agreed…
Olson on functional regulation, modernisation
In a speech on 'Functional Regulation and Financial Modernization' given on 22 November, Mark Olson of the Federal Reserve said the American economy's torrid third-quarter growth was spurred by the biggest monetary and fiscal stimulus jolt since World…
Bundesbank's Welteke on reforming Europe
In the speech 'Reforming Europe' given on 21 November, Ernst Welteke of the Deutsche Bundesbank said at present, low interest rates and ample liquidity are highly conducive to growth in the euro area. In the ECB Governing Council, Welteke stressed, we…
Central bankers: Smarter or better informed?
"I have always admired the unique role of central bankers. As we reflect from time to time upon reincarnation as a possible next step, I lean towards that option", writes OECD secretary-general, Donald J. Johnston in this article published by the OECD…
Russian Duma adopts new law on currency controls
The Russian State Duma adopted a draft law "On currency regulation and currency control" on 21 November, according to ITAR-TASS. Under the law precious metals and stones will no longer be treated as currency assets and Russian citizens will be allowed to…
Minister explains Slovenia's decision on EMU
Slovenian Finance Minister Dusan Mramor told a business conference that the decision to enter the European Exchange Rate Mechanism ERM II and the European Monetary Union (EMU) as soon as possible has been risky, but well thought through, according to the…
BSP printing plant: More than just about money
This article in the Philippine Daily Inquirerlooks at the Bangko Sentral ng Pilipinas (BSP) bank note printing operations. The BSP owns the printing, minting and refining facility it calls the Security Plant Complex (SPC), an imposing structure…
MAS to carry out monetary policy review
Chairman of the Monetary Authority of Singapore, Lee Hsien Loong, said at the bank's staff seminar last week that the MAS would be undertaking a comprehensive review of how it conducts monetary policy to take into account structural changes in the…
New Vice Governor at BEAC
The Bank of Central African States, the central bank for Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea and Gabon has appointed Pacifique Issoibeka as its new Vice Governor. Issoibeka joined the BEAC in 1973.
Central bank finest go East
After retiring from the Bank of England Sir Edward George joined the boards of NM Rothschild, Grosvenor, the Duke of Westminster's property group and Swiss confectioner Nestle, swapping gold bars for chocolate bars in the process. But now Sir Eddie, and…
St Louis Fed to lose over 130 staff
President of the St Louis Fed, William Poole, has said that the bank plans to close its Louisville branch next year, according to The Courier Journa, with staff numbers of 140 reduced to less than ten. The branch will maintain a board of directors in…
IMF eyes replacement for Geithner
Speaking last Friday, 21 November, IMF chief Horst Koehler that said he would appoint Mark Allen to replace Tim Geithner, who is now President of the Federal Reserve Bank of New York, according to Reuters. If approved by the IMF's executive board Allen…
Trichet's home sweet home
After stepping into Wim Duisenberg's shoes at the start of November as President of the European Central Bank, it now transpires that Jean-Claude Trichet has also moved into Duisenberg's old house.
Does Greenspan deserve another term?
Posing the question, "Does Greenspan deserve another term?" Joseph Salerno, who teaches economics at Pace University, answers with a resounding NO! Not only had the Fed's performance been "outstandingly bad" during the Greenspan years, it says, but the…
Interview with BNB's Tsvetan Manchev
In an extensive interview published by Capital weekly, the National Bank of Bulgaria's deputy governor Tsvetan Manchev said that the BNB plans to carry out vocational training of its staff in preparation to take an active part in the banking system of…
IMF, EU back ECOWAS currency
Dr Michael Ojo, of the West African Monetary Institution (WAMI) told a press briefing at the weekend in Abuja that the IMF, European Union, ECB and the Bank of England are partners with WAMI in implementing the West African common currency.
Fed's Stern sees no pick-up in inflation
Minneapolis Fed President Gary Stern said on Friday 21 November that if US inflation remains low, which he thinks it will, interest rates can also remain low, according to a Reuters report. "I don't expect to see any material acceleration of inflation…
Fed's Ferguson hints no U.S. rate hike soon
Federal Reserve Vice-Chairman Roger Ferguson said in remarks to the Executives' Club of Chicago on Friday 21 November, and reported by Reuters, "Although the recovery now appears to have turned the corner, much additional progress remains to be made…
Fed to issue Beige Book 2 hours early
Due to the early closure of some financial markets for the Thanksgiving holiday, the Federal Reserve has said it will issue its Beige Book two hours early on 26 November, according to Reuters.
Fed's Poole says not worried on money supply drop
William Poole, President of the St Louis Fed, said on Friday 21 November that "If something happens that calls for policy to change then policy will change,", but until then interest rates would at their current record low levels, Reuters reports.
Survey of Professional Forecasters
The Federal Reserve Bank of Philadelphia published its Fourth Quarter 2003 Survey of Professional Forecasters on 24 November. Forecasters gain optimism about 2004 - The outlook for growth over the next few quarters looks stronger now than it did just…
Germany's Welteke warns on EU draft constitution
The chief of the Deutsche Bundesbank warned on Friday 21 November that unless changes are made to the EU's draft constitution it could jeopardise monetary stability in the eurozone, reports AFP. "In my view, redrafting the convention's proposal is…
Fed's Parry says US rates appropriate
The chances of inflation becoming a problem in the US economy are low, San Francisco Fed President and CEO Robert Parry has said, according to an AAP report. Speaking in Sydney via satellite, he commented "In the current low-inflation environment, upside…
Zimbabwe's inflation set to top 700 per cent
Presenting the National Budget last week, Zimbabwe's Finance and Economic Development Minister said inflation was likely to hit 700 percent by the end of March 2004, according to the Financial gazette. "However, it is my projection that inflation will…