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Paper: monetary policy rules with uncertainty
What happens to Taylor rules when uncertainty in the economy increases? A recent paper by Gabriel Srour of the Bank of Canada addresses this question and analyses how the rule changes when uncertainty and time lags increase.
Indian economy on the mend, says Jalan
Outgoing governor of India's central bank, Bimal Jalan, believes that strong economic fundamentals will clear the way for a higher growth rate and ease the way to full convertibility of the rupee, according to Asia Pulse.
Nigerian cb branded reckless and inefficient
The central bank in Nigeria has been denounced for its "recklessness and managerial inefficiency" by a member of the House of Representatives, which he says explains the sorry state of the banking sector, according to a report in the Daily Champion,…
Arminio Fraga hedges his bets
Investors have been scrumming to get a piece of the action as Arminio Fraga, Brazil's ex-central bank governor and former employee of George Soros, is starting his own hedge fund. "It's going well," says Fraga, and great things are expected, according to…
Zimbabwe limits currency holdings
Zimbabwe has outlawed of individuals holding cash exceeding five million Zimbabwean dollars (US$6,250) in another attempt to halt the cash crisis, reports the Sunday Times in South Africa.
Serbian National Bank loan to boost govt budget
Bozidar Djelic, Serbian finance minister, today announced in an interview with the Belgrade financial daily Pregled that the government will take out a loan with the Serbian National Bank in September to boost the budget reports B92. The announcements…
Buenaventura wins president's support to appeal
Philippine central bank chief Rafael Buenaventura has won the support of President Gloria Macapagal-Arroyo following a court ruling to suspend him for a year, according to Agence France-Presse. Although Buenaventura should be able to appeal, she does not…
What is a central bank governor worth?
CentralBankNet's Monday Special reveals the going rate for the job of central bank governor.
The ECB's mission statement
Five years after its creation the ECB has decided it needs a mission statement. Its main objective is, of course, price stability, with "integrity, competence, efficiency and transparency" as its watchwords. But there is no place in the two paragraphs,…
Guillermo Ortiz on financial reform
The governor of Mexico's central bank discusses the disappointing results of the "first-generation" reforms of the Washington consensus and emphasizes the importance of "second-generation reforms", concentrating on constructing the the right…
Jalan on exchange rate policy
In a speech given at the 14th National Assembly of Forex Association, the governor of the Reserve Bank of India, Dr Bimal Jalan, mused on the central bank's exchange rate policy. The present system is by no means an ideal one. However, like the old…
UAE central bank profit falls by 50%
The net profit of the central bank of the United Arab Emirates fell by over 50%for the year 2002 to Dh528 million from Dh1.1 billion in 2001, according to a report by Menaf.com. The central bank cited a sharp fall in the bank's treasury operations,…
SARB cuts interest rate by one percentage point
Tito Mboweni, South African Reserve Bank governor, said the committee had to strike a "careful balance" in determining monetary policy, according to allafrica.com, as he explained yesterday's one percentage point cut in interest rates.
MAS to push ahead with bond issue
Despite concerns from some investors that the market is saturated,the Monetary Authority of Singapore announced that it intends to go ahead with plans to issue a new 15-year government bond, reports ChannelNewsAsia.
RBI cautious over foreign borrowing
The Reserve Bank of India sounded a note of caution over unlimited access to short-term external commercial borrowings by businesses to fund working capital and other domestic requirements, according to a report by rediff.com.
No intervention to halt peso slide
The central bank of the Philippines did not intervene in the currency markets on Friday morning, August 15, despite the peso's dipping below the level of 55 to the dollar, said Amando Tetangco Jr, a deputy governor, according to INQ7.net.
Russian state eyes central bank profits
Russia's 2004 draft budget proposes to let the central bank keep 20 percent of its profits, down from the current level of 50 percent, according to The Moscow Times. However First Deputy Central Bank Chairman Oleg Vyugin said in an interview "We do not…
Mboweni remains upbeat on inflation
Speaking at a press conference following the South African Reserve Bank's two-day Monetary Policy Committee meeting on Thursday 14 August, Tito Mboweni said that not only did the inflation outcome improve over the past two months, but the inflation…
India may ease some rules on rupee trading
Reserve Bank of India governor Bimal Jalan, speaking at the Forex Association of India. said that the RBA could loosen rules on currency trading, according to Bloomberg. He also said that "Convertibility continues to be a desirable objective for all…
Persson tells Swedes euro won't hit welfare scheme
With the September referendum on the euro fast approaching, the Financial Times reports that Swedish prime minister Goran Persson has moved to reassure Swede's that their generous welfare programmes would not be damaged by euro membership.
Germany in recession as Eurozone stagnates
The German economy fell into a technical recession after data showed a second successive quarter of negative growth in the three months to the end of June, Reuters reports.
Philippine court suspends central bank chief
Rafael Buenaventura, governor of the Philippines central bank, has been suspended from the bank for a year, according to a report by Channel1NewsAsia. The Court of Appeals on Wednesday 13 April found Mr Buenaventura and four other central bank officials …
BSP comments on suspension reports
Press release from the Philippines central bank, Bangko Sentral ng Pilipinas (BSP), 14 August, on media reports that court of appeals ordered suspension of central bank officials.
The role of central bank money in payment systems
The role of central bank money in payment systems raises a number of questions this CPSS Paper says. For example, which institutions should have accounts at the central bank? What services should central banks provide to meet the needs of account holders…