Monetary Policy
FOMC disagrees over monetary policy strategy
Federal Open Market Committee discusses alternative monetary policy strategies; committee disagrees over setting a “longer-run inflation goal”
Monetary and financial stability policy are distinct: Riksbank’s Svensson
Riksbank deputy governor Lars Svensson says financial stability policy should not be confused with monetary policy
Sarb’s Marcus laments ‘new phase’ in eurozone crisis
Latest South African Reserve Bank Monetary Policy Review shows rising inflation and hesitant domestic economic recovery; governor Gill Marcus shares concerns as eurozone crisis rumbles on
RBI’s Subbarao calls on government to address rising food prices
Reserve Bank of India governor Duvvuri Subbarao says monetary policy response to elevated food inflation is limited and improvements in supply chain management are needed
Accommodative policies risk triggering interest rate traps: Norges Bank paper
Norges Bank study says low interest rate environments provide banks with incentive to rely on public provisions for liquidity
Monetary policy should be recalibrated: BoE’s Miles
Bank of England’s Monetary Policy Committee external member David Miles says shift in housing market may require changes to the way monetary policy is formulated
Dovish Miyao wants more QE for Japan
Bank of Japan minutes show policy board member Ryuzo Miyao voted for a ¥10 trillion monetary injection at the last meeting
Liikanen predicts emerging market over-take in 2013
Bank of Finland governor sees emerging economies overtaking developed as soon as 2013; Bank of Finland renews terms of two key central bank figures
SF Fed says mortgage market reforms can aid monetary policy
San Francisco Federal Reserve president John Williams says fiscal policy must work in tandem with monetary policy to stimulate US economy
Central bank intervention in credit markets threatens independence, says Fed's Lacker
Richmond Federal Reserve president Jeffrey Lacker says intervention in credit markets diminishes central bank autonomy; CentralBanking.com poll suggests otherwise
Blanchflower blasts BoE’s forecasting record
Former Bank of England Monetary Policy Committee member David Blanchflower says central bank will continue to miss projections until outdated models are replaced
Quantitative easing proved effective in Japan: IMF paper
Fund study shows the Bank of Japan’s asset purchase programme helped lower bond yields and raised equity prices in the country
BoE revises downward UK growth forecast
Bank of England November Inflation Report expects sluggish growth in 2012 on back of weak global demand and eurozone crisis
BIS paper finds tightening bias in reserve requirements
Bank for International Settlements study says reserve requirements impose tax burden on Chinese banks, which is passed on to depositors and SMEs
King sees sharper decline in inflation ahead for UK
Inflation in the UK falls to 5% in October, but Bank of England governor Mervyn King says inflation could drop more “sharply” in the next six months
Chile’s De Gregorio discusses how to tackle asset-price bubbles
Central Bank of Chile governor José De Gregorio says distortions in asset markets are often best addressed using foreign exchange interventions
Netherlands Bank paper identifies determinants of inflation-targeting adoption
Netherlands Bank study discusses common characteristics of countries that implement inflation-targeting regimes
High 'euro-isation' poses challenges to monetary policy: IMF paper
Fund study says monetary policy channels in Hungary operated efficiently despite large exchange rate volatility
The gathering storm
Solving the financial crisis increasingly looks beyond the reach of monetary and financial policies, writes Ludek Niedermayer. Worse could follow in 2012 for central bank balance sheets, he warns.
The case for a real SDR currency board
An enhanced special drawing right, backed by a basket of goods, would provide the global currency the global economy craves, argues Warren Coats.
National Bank of Austria to invest in renminbi-denominated assets
People’s Bank of China and National Bank of Austria sign agreement enabling the Austrian central bank to invest in renminbi-denominated assets
Eurozone fears spread worldwide
Indonesia drops rate in surprise move, Lithuania and Mexico slash growth forecasts as the UK prepares for “Armageddon”
Negative monetary policy effects from declines in pledgable collateral: IMF paper
Fund study says reuse of pledgable collateral by banks and dealers contributed to dry-up of liquidity during global financial crisis