Monetary Policy
Norway's Olsen: price stability remains central bank's priority
Norges Bank governor Øystein Olsen says price stability will remain primary monetary policy objective despite low inflation experienced in Norway over recent years
Monetary policy effects on housing bubble: Bank paper
Bank of England study measures impact of monetary policy and capital inflows on housing activity
Central banks should consider price-level targeting: CentralBanking.com poll
Fifty-three percent of voters in CentralBanking.com poll think central banks should mull switch to price-level targeting framework
Mortgage discounting slows monetary policy pass through: Bank of Canada
Bank of Canada Winter Review 2010–2011 says mortgage-rate discounting slows monetary policy pass-through to lending rates
The inflation targeting debate: a case study in FOMC deliberation
Discussions among Federal Open Market Committee members in the mid1990s highlight two important lessons for central bankers, Marvin Goodfriend shows
Financial reform, Fed independence and the political economy of monetary policy
The 2010 Financial Reform Act will weaken the independence of the Federal Reserve. Looking at the central bank’s history and its political economy allows us to appreciate why, Thomas F. Cargill argues
FOMC minutes on why yield curve is steepening
Federal Open Market Committee meeting minutes explain steep rise in long-term Treasury yields
ECB overnight lending rockets to 19-month high
Banks’ borrowing from the European Central Bank’s marginal lending facility climbs to $21 billion on Wednesday; sudden move has sparked speculation on bank troubles, analysts say
RBA minutes: rates on hold as flood damage assessed
Minutes of Reserve Bank of Australia rate-setting meeting relay concerns over impact of floods on economic outlook; cautious over rising commodity prices
Buba study on robustness of monetary policy
Bundesbank research examines whether misspecification may have consequences on robustness of monetary policy decisions
Inflation may hit 5%, but we couldn’t have done it different: King
Bank of England’s Inflation Report says inflation will likely soar further; medium term outlook shifts slightly as spare capacity margin revised downwards
PBoC to lend to drought-wracked agricultural sector
People’s Bank of China says it will lend for agricultural purchases and drought relief to stymie effects of continuing drought
Inflation benefits poor, hurts rich: Central Bank of Chile paper
Central Bank of Chile study shows contrary to conventional wisdom inflation has negative affects on welfare of rich but benefits the poor
King acknowledges risk of wage-price spiral as inflation climbs to double Bank’s target
Inflation of 4% in January prompts Bank of England governor Mervyn King to pen another letter to the chancellor; letter acknowledges mounting inflationary pressures
Kansas City Fed paper on search frictions in monetary policy
Kansas City Federal Reserve paper finds evidence of indeterminacy in monetary policy in models with labour markets search frictions
Spanish banks’ ECB reliance drops
Spanish banks’ borrowing from European Central Bank declines just over 20% compared to December
Bank amends collateral rules for sovereign debt
Revisions adjust ‘narrow’ and ‘wide’ bands for eligible collateral; change is for liquidity reasons
NY Fed’s Sack: rise in long-term yields not down to inflation
New York Federal Reserve executive vice president Brian Sack says rise in longer-term interest rate reflects better growth outlook rather than rising inflationary pressures
Inflation often misunderstood: Atlanta Fed’s Lockhart
Atlanta Federal Reserve president Dennis Lockhart discusses common misuse of the term “inflation” in news reports
Bank’s inflation argument ‘fanciful’: ex-MPC’s Julius
Former Bank of England rate-setter DeAnne Julius says inflation expectations risk becoming unmoored; monetary policy acting for financial stability, ex rate-setter Tim Besley adds
Ex-Bank economists parry fears of wage-price spiral
Upsurge in inflation will not pass through into wages, economists at Fathom Consulting believe
Southern Sudan should adopt currency board: IMF mission chief
Fund’s Sudan mission chief Edward Gemayel says simplicity of currency board system advantageous for soon-to-be country; South preparing to adopt new currency
Norges Bank’s Nicolaisen gives advice on rate-setting in turbulent times
Norges Bank director of monetary policy Jon Nicolaisen on setting monetary policy in volatile economic times
Monetary policy not responsible for land price bubbles: Minneapolis Fed’s Kocherlakota
Minneapolis Federal Reserve president Narayana Kocherlakota disputed claims that land price bubbles are a consequence of loose monetary policy