Monetary Policy
King on QE: we’ve filled a hole
Bank of England governor says pumping £200 billion into economy averted “very serious contraction” in money supply; flags concerns over eurozone’s stuttering recovery
Bank’s Tucker: show me the money numbers
Bank of England’s deputy governor says monetary authorities must remain attentive to money and credit developments post crisis
Bank of Japan – Minutes (25 and 26 Jan)
Minutes of the Japanese central bank’s most recent policy meeting show members felt December measures had heightened effectiveness of policy easing, cabinet representatives emphasises achieving positive inflation as soon as possible
Fiscal cuts must precede monetary tightening: IMF
International Monetary Fund notes fiscal consolidation is by far the biggest concern; suggests central banks maintain large balance sheets for time being
Bank had different objectives with corporate bond purchases: Fisher
Bank of England’s executive director for markets Paul Fisher says the central bank’s asset purchase facility has achieved what it set out to do
Uganda’s Kaskende: help us prepare for reform
Bank of Uganda deputy says firms must pave way for change with new reporting standards
Bank of Canada Review (Winter)
Winter edition of bulletin contains articles on inflation persistence, capital flows in emerging markets and the accessibility of banknotes
Fed presidents play down discount hike
Regional Fed presidents William Dudley, Dennis Lockhart and Janet Yellen deny that rise in discount rate equates to the end of accommodative policy
Hungarian rate falls to record low
National Bank of Hungary rate-setters slice a quarter point off key rate, now at all-time low
Jordan cuts to boost growth
Jordanian central bank shears half a percentage point off its key overnight deposit rate to stimulate the flagging domestic economy
Fed’s discount rate hike jolts markets
Federal Reserve firms exit strategy by lifting the rate at which it lends to banks by a quarter percentage point, markets teeter
Towards a new framework for monetary policy
Jacques de Larosière argues that monetary policy played a major role in the run-up to the financial crisis and that a new operational framework is needed
Real-estate poses threat to recovery: Minneapolis Fed’s Kocherlakota
Minneapolis Fed president Narayana Kocherlakota echoes recent comments from other regional Fed leaders in his first speech, says recovery will be slow
Bank of Uganda – Financial Stability Report
Ugandan central bank publishes inaugural report detailing the health of the financial sector and documenting policy moves taken to combat the crisis
Balance sheet policy and money market liquidity: SARB paper
South African Reserve Bank paper says balance sheet policy must be thought of in the same way that interest rates are regarded
Russia cuts on carry trade concerns
Bank of Russia chops a further 0.25% off its key refinancing rate and intervenes in currency markets on worries of rouble strength
When to exit?
In Central Banking’s second webinar, sponsored by BNP Paribas Securities Services, Charles Goodhart, Lucrezia Reichlin, Paul Mortimer-Lee and Gabriel Stein discussed when central banks should raise rates
Has Bernanke broken his promise to Friedman?
The monetary policies of the Federal Reserve have helped to avoid a second Great Depression, but Bernanke’s emphasis on credit has been misguided, says Tim Congdon
SA finance minister flip flops on inflation targeting
South Africa’s Pravin Gordhan says inflation-fighting approach to be “totally different” days after pledging to keep Reserve Bank’s monetary-policy mandate unchanged
Monetary-policy transmission in Mauritius
Paper examines mechanism over the past decade
A model for rate setting in Israel
Paper finds incorporating capital-market inflation expectations improves model
Plosser defends regional Feds’ rate-setting role
Regional Fed presidents’ votes help link monetary policy with Main Street
Fed’s Hoenig flags independence threat from fiscal burden
Sole dissenter points to German hyperinflation and Fed’s kowtowing to Congress over Vietnam and Great Society as signs central bank could act on political pressure
Argument for QE hold “finely balanced”: Bank
Bank of England’s Monetary Policy Committee all backed decision to pause on QE, but for some vote a close call