Monetary Policy
A century of financial crises in New Zealand
Recent analysis from the Reserve Bank of New Zealand suggests that improvements in policy will reduce the risk of a currency crisis going forward
Cut expenditure as soon as recovery firms: RBI’s Gopinath
Reserve Bank of India deputy governor Shyamala Gopinath says spending will have to be reined in to protect and foster the country’s economic growth
Let the yuan appreciate: leading Chinese think tank
Chinese Academy of Social Sciences argues for a one-off 10% appreciation of the yuan as international calls intensify
Turkish cuts beginning to ease credit markets
Central Bank of Turkey says loosening has started to produce improvements in financial sector
Taylor-rule author blasts Bernanke’s argument
Economist John Taylor says Bernanke was wrong to argue that low interest rates were not a factor in the housing bubble that led to the financial crisis
Bundesbank – Monthly report (Nov 2009)
German central bank’s monthly report documents the manufacturing-led recovery in global trade and stresses the need for fiscal consolidation in 2010
Inflation targeting insufficient: China’s Zhou
People’s Bank of China’s Zhou Xiaochuan says targeting low inflation alone is inadequate, particularly in light of the financial crisis
Romania cuts by half point
National Bank of Romania reduces key rate in bid to meet inflation target
Bernanke: low rates didn’t spur housing bubble
Federal Reserve’s Ben Bernanke says direct linkages between low federal funds rate and rise in house prices weak; fix regulation not monetary policy
Israeli rates rise as Fischer enforces third hike
Bank of Israel’s Stanley Fischer hikes prime rate to 1.25%
Botswana slashes a point off rates
Bank of Botswana cuts key rate to 10% - a record low
Jordan cuts by half a point
Central Bank of Jordan knocks 50 basis points off key rate as deflation strikes
BoJ partly to blame for lost decade: CEPR paper
CEPR looks at the contribution of the stock of money to the macroeconomic outcomes of the 1990s http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=7608
BoE’s Miles calls for smaller banking sector
Bank of England’s David Miles says the enormous size of the banking sector is no longer justified
Fed reiterates plans for February exit
Federal Open Market Committee and governors expect to exit most crisis-fighting facilities early next year; committee keeps “extended period” pledge
Czechs surprise with rate cut
Czech National Bank opts to shave a quarter point off key rate
Norway hikes for second time
Norges Bank raises key rate to 1.75% citing pick-up in economic activity
Oil-price forecasts inaccurate
Bundesbank looks at the expectation-formation process of forecasters in the crude oil market
East Asia will take its cue from Fed: Indonesia deputy
Budi Mulya, the deputy governor of Bank Indonesia, says it is crucial the Fed err on the side of caution in withdrawing accommodative measures; East Asia-Pacific region will watch it closely
Cutting interest rates the best solution: ECB paper
A European Central Bank working paper argues that interest rate cuts and controlled inflation help adverse financial conditions, while simplistic interpretation of Taylor rule does not
Crisis down to global imbalances: Obstfeld, Rogoff
Maurice Obstfeld and Kenneth Rogoff say global imbalances key source of crisis
Bank of England – Quarterly Bulletin
Bank of England says secondary corporate bond market needs more support
Biggest exit barriers political: Buiter
Willem Buiter says main obstacles to exiting unconventional policies
ECB – Monthly Bulletin (December)
European Central Bank justifies decision to wind down crisis-fighting operations