Monetary Policy
Central banks should allow governments to fail: Kocherlakota
Minneapolis Federal Reserve president Narayana Kocherlakota says central banks risk losing control of price stability if they don’t allow fiscal authorities to default
Forward guidance not always a positive sum game: Subbarao
Reserve Bank of India governor Duvvuri Subbarao identifies challenges in using monetary policy statements to offer guidance on future policy
Taiwan again defends currency policies
Central Bank of the Republic of China (Taiwan) releases statement defending policies; second time this month public defence is issued
MPC member Broadbent discusses sterling depreciation
Ben Broadbent analyses the cause and consequences of the sterling’s depreciation between 2007 and 2008
Gonzalez-Paramo urges speedy action in Europe
ECB executive board member pushes for more haste from European leaders to stem the crisis; says ECB has not decided when to end bond-buying programme
G-20 commits to ‘strong and co-ordinated’ response to challenges
G-20 answers calls for united action; countries commit to implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth
Bank of Korea holds economic review meeting
Governor Kim Choongsoo meets with heads of institutions and scholars; domestic financial markets ‘overreacting’ to changes in external conditions
Philly Fed paper tests accuracy of Phillips curve in forecasting inflation
Philadelphia Federal Reserve study shows accuracy of Phillips curve models in forecasting inflation is highest during economic downturns
Long-term yields plunge as Fed initiates Operation Twist
Federal Open Market Committee to buy $400 billion in long-term government bonds in exchange for shorter-dated paper as yields on 10- and 30-year Treasury bills decline
Bank’s Dale explains vote reversal
Bank of England chief economist Spencer Dale says materialisation of risks to UK growth outlook motivated decision to hold rates
Bernstein sounds warning to new Danish government
Governor Bernstein says there is no need for fiscal stimulus; urging government to pull back from election process stimulus promises
Asset Purchase Facility focus of BoE QE discussions
Bank of England minutes reveal Monetary Policy Committee considered changing maturity profile of asset purchase facility
IMF World Economic Outlook piles on the gloom
Latest World Economic Outlook lowers global growth estimates; warns Europe and US policy-makers not to let problems get out of hand
San Francisco Fed paper identifies strong QE signalling channel
San Francisco Federal Reserve study finds strong signalling effect from Federal Reserve’s quantitative easing programme
RBA holds rates as global uncertainty continues
Reserve Bank of Australia minutes shows policy board left rates on hold as international outlook became even more cloudy
Riksbank was ‘wrong’ to raise rates: Svensson
Riksbank deputy governor Lars Svensson says Riksbank miscalculated repo rate path and should have followed Federal Reserve with accommodative stance
Mauritius to investigate interest rate ranking
Mauritius plans to challenge World Economic Forum report on interest rate spread ranking
BoE has 'space' to opt for more quantitative easing: deputy prime minister
Bank of England must independently decide on whether to introduce more quantitative easing, says deputy prime minister Nick Clegg; issues stark global economy warning
Turkey’s Basçı outlines strategy to overcome commodity price volatility
Central Bank of Turkey governor Erdem Basçı says setting targets and forecasts for inflation offers firmer commitment from central bank
BoJ prepared to react to strengthening yen, says Miyao
Bank of Japan policy board member Ryuzo Miyao says central bank stands ready to stem deflationary pressures resulting from rising yen
Fed policy must be state contingent: Bullard
St Louis Federal Reserve president James Bullard calls for FOMC to discard fixed dates for setting policy
BoC paper experiments with price-level targeting
Bank of Canada study finds evidence in support of well-anchored inflation expectations in a price-level targeting regime
HKMA’s Chan happy with pace of renminbi internationalisation
Norman Chan accepting of need to test the offshore market with step by step internationalisation of renminbi; urges banks to get ready for trade using Chinese currency
Posen calls for UK version of Fannie Mae
Bank of England MPC external member Adam Posen says establishment of government-sponsored entities would make up for credit short fall in lending markets; calls for immediate quantitative easing