Monetary Policy
New Zealand’s McDermott emphasises inflation targeting success
Reserve Bank of New Zealand assistant governor highlights success of central bank’s inflation targeting policy; says there is still room for improvement
Robert Pringle's Viewpoint: Fatal flaws in inflation targeting
Central bankers face a ‘lose-lose situation’ by accepting dual price and financial stability mandates when even their ability to achieve price stability via inflation targeting is in question
RBI holds rates fearing impact of further QE abroad
Reserve Bank of India says another round of quantitative easing in advanced countries would have an adverse impact on growth and inflation; keeps rates on hold in anticipation
UK credit and liquidity schemes met with uncertainty
BoE and government announce plans to improve credit and liquidity picture in UK; banks’ shares rise but questions remain on effectiveness of plans
Japan paying ‘particular attention’ to Europe but holds rates
Bank of Japan watching situation in Europe closely; keeps monetary policy steady ahead of key developments in the region
Draghi defends sovereignty in an economic union
President of the European Central Bank discusses future of economic union in the eurozone; hints at more stimulus
Bank of Canada paper compares price-level and inflation targets
Working paper considers effect of global commodity price shocks on choice of monetary policy regime; finds important impact of energy supply and demand
UK plans joint BoE-government funding scheme
Mervyn King announces 'funding for lending' scheme for banks; stresses full support from government is necessary
Bank of Korea governor on adaptation to global environment
Choongsoo Kim delivers speech arguing that central bank must adapt to global economic environment; highlights importance of growing policy interdependence
Sarb governor discusses response to economic risks
Gill Marcus examines economic risks facing South African economy; says employment target should not be included in bank’s mandate
Posen calls on BoE to go beyond gilt purchases
External MPC member urges purchase of assets other than government bonds; suggests creation of a Fannie Mae-type entity in the UK
BoJ paper explains central bank’s money market operations
Paper examines Bank of Japan money market operations in fiscal 2011; says bank’s provision of funds maintained market confidence throughout year
Central Bank of Colombia paper models transparency incentives
Working paper evaluates central bank incentives to misrepresent private information; finds central banks cannot credibly commit to truth-telling
PBoC cuts rates and moves to address ‘informal lending’
People’s Bank of China surprises many observers with 25bp cut in benchmark rates; moves to ease banking restrictions on lending in China
Albanian governor discusses monetary policy decision
Bank of Albania governor Ardian Fullani describes mixed economic outlook; central bank keeps rates unchanged at 4.25%
Fed policy-makers consider further QE
Janet Yellen “convinced” of scope for further expansion of Fed balance sheet; Bernanke says rapid fiscal tightening a “serious threat” to recovery
Reserve Bank of Australia cuts policy rate by 25bp
Australian central bank cuts interest rate by 25 basis points; board says weaker and more uncertain global environment allows for more ‘accommodative’ policy
ECB holds rates and offers no new stimulus
European Central Bank offers no substantive new policies to help tackle eurozone sovereign debt and banking crisis; puts pressure back on law-makers
Shirakawa discusses BoJ monetary policy
Governor of Bank of Japan considers central bank’s monetary policy stance and explains the rationale behind recent policy decisions
Finland board member considers changing role of central banks
Member of the board of the Bank of Finland examines changes in the role of central banks after the financial crisis; highlights greatly expanded demands
Central Bank of Belize publishes annual report
Annual report published by Central Bank of Belize says central bank is “cautiously optimistic” regarding economic outlook
Bank of Canada paper estimates settlement balance demand
Working paper estimates aggregate demand for settlement balances; suggests that the central bank’s supply of $3 billion is reasonable
Swiss central bank board member explains unique situation
Jean-Pierre Danthine examines SNB’s unusual monetary policy situation; says impact of unconventional measures should not be overestimated
Fed to release historical central banking material
Federal Reserve reveals plans to mark centenary; inventory of historical information about central banking in the US to be created