Monetary Policy
Riksbank’s Nyberg challenges Svensson over monetary policy framework
Riksbank deputy governor Lars Nyberg says monetary policy must support macroprudential policy; comments contrast with Svensson’s calls for monetary policy to focus on price stability
QE3 possible if conditions warrant it, says Bernanke
Federal Reserve chairman Ben Bernanke says a further expansion of Treasury bill purchase programme is possible; stresses worries on unemployment
Central Bank of Turkey – Inflation Report (Q4 2010)
Central Bank of Turkey’s fourth quarter Inflation Report says despite strong domestic demand, weak external demand forced the central bank to keep rates low
Trichet to eurozone governments: take the lead on debt crisis
European Central Bank president Jean-Claude Trichet says debt crisis is within governments’ remit, hinting at support for extension of European Financial Stability Facility
ECB bucks market expectation with silence on further bond purchases
European Central Bank extends liquidity operations but does not commit to more bond purchases; move comes against market anticipation, dividing analysts
BoE paper: capital inflows primary cause of US housing bubble
Bank of England study shows large capital inflows had a greater effect than monetary policy in generating housing bubble in United States
BoJ: a guide to the Tankan
Bank of Japan publishes note outlining ten most frequently used statistics on business conditions in Japan
Fed’s Yellen: QE2 could help emerging markets
Federal Reserve vice chair Janet Yellen makes case for currency appreciation in emerging markets; remarks come on the heels of emerging market criticism of QE2
IMF: inflation targeting reduces dollarisation
Fund study says inflation targeting framework strengthens monetary policy channel in countries with high levels of dollarisation
Taylor calls on Fed to focus on price stability, not employment
Economist John Taylor likens Federal Reserve’s quantitative easing programme to fiscal policy; says central bank should focus on single price stability mandate
Central banks more independent in decentralised states: BIS
Bank for International Settlements study looks at impact of political economy on central bank independence
State Bank of Pakistan blames government for rate hike
Pakistani central bank says 50 basis point interest rate hike made necessary by government’s excessive borrowing
St Louis Fed: central banks must plan credible QE exit
St Louis Federal Reserve study shows success of quantitative easing depends on central bank's ability to credibly plan for stimulus withdrawal
MAS: capital inflows pose serious risks to emerging markets
Monetary Authority of Singapore's Financial Stability Review warns accommodative monetary policies present substantial inflationary risks to emerging economies
ECB's emergency liquidity measures eased credit crunch, says CEPR
Centre for Economic Policy Research study shows European Central Bank's response to financial crisis helped ease liquidity strains in wholesale markets
Shirakawa draws parallels with QE in Japan, US
Bank of Japan governor Masaaki Shirakawa says same aims underlie Japan's monetary easing scheme and Federal Reserve's asset purchase programme
Shirakawa: currency appreciation not panacea for inflows
Bank of Japan governor Masaaki Shirakawa says textbook solution to capital inflows does not apply to emerging economies in low interest rate environment
Posen reveals Bank MPC at odds over fiscal policy
Bank of England rate-setter Adam Posen talks of divide over fiscal retrenchment; accuses majority view of being “excessively political”
Budapest sets sights on Hungary’s rate-setting council
Hungarian government seeks amendment giving a parliamentary committee full control over majority of appointments to central bank’s Monetary Council
Svensson attacks Sweden’s monetary policy framework
Riksbank deputy governor Lars Svensson finds "problem" with use of repo rate to address financial stability; favours sole focus on inflation targeting
Fed officials mooted alternative policy frameworks
Federal Open Market Committee members discussed altering monetary policy communications and targets ahead of November meeting
Fed’s Lacker warns of elevated inflation expectations
Richmond Federal Reserve president Jeffrey Lacker says using monetary policy to address unemployment risks permanently elevating inflation expectations
The People’s Bank of China’s battle on two fronts
Events both at home and abroad have kept China’s central bank busy in recent months. Hui Feng reports.
Fuddy-duddyism without money
Samuel Brittan enjoys Forrest Capie’s epic history of the Bank of England in the third quarter of the 20th century.