Monetary Policy
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
Canada announces renewed inflation target range
Canadian government and central bank announce renewal of the inflation-control target for the central bank; goal to remain the 2% mid-point of a 1-3% range
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic
Carney takes aim at shadow banking activity
New Financial Stability Board chairman emphasises fight against shadow banking institutions; says global liquidity fluctuations are damaging financial stability
Philippines re-launches economic and financial learning centre
Central Bank of the Philippines reopens economic and financial learning centre in its Cabanatuan Branch Office; education activities continue throughout the country
Time for timidity has passed, says Lagarde
Christine Lagarde calls for action from developed and emerging economies; tells Russia to rebuild fiscal buffers
Central banks react to eurozone situation
Denmark and Romania lower benchmark rates and Australia lowers growth expectations; all point to continuing eurozone uncertainty as key decision-making factor
Build-up of euro area risks necessitated further stimulus: BoE’s Bean
Bank of England deputy governor Charlie Bean explains Monetary Policy Committee’s decision to restart its quantitative easing programme
Draghi announces rate cut amid fears of mild recession
European Central Bank president Mario Draghi marks inaugural Governing Council press conference with 25 basis point rate cut; ECB reveals details of covered bond scheme
Brazilian politicians take on inflation-targeting mandate
Bill to alter Central Bank of Brazil's inflation target mandate passes Senate Economic Affairs Committee; discussion flares-up as to whether central bank is already employing a mulit-target mandate
Risk USA: US regulators “scared to death” by eurozone debt crisis
The sovereign debt crisis is a concern, but direct US bank exposure is manageable, says senior OCC official
Bernanke faces tough questions at press conference
Federal Reserve chairman tackles queries on monetary policy impact, Europe and political pressure; only recently started holding post-FOMC press conferences