Monetary Policy
Fed behaviour matches optimal target rule
A discussion paper on the Fed and monetary policy rules argues that an optimal target rule, rather than the Taylor rule, best explains the central bank’s policy behaviour
US and UK too slow in tackling bubble: BoJ’s Yamaguchi
The Bank of Japan deputy governor says authorities’ task was complicated by the expansion of the shadow banking industry
IMF backs HK peg weeks after bubble warning
International Monetary Fund says it supports peg; support comes after research paper cites risk of bubbles from currency strategy
Turkish credit conditions improving
Central Bank of Turkey’s policy minutes show strains in the country’s credit markets are easing
BoE should keep close eye on bubbles: Dale
Bank of England’s Spencer Dale says the central bank’s current policy stance increases the likelihood that asset prices may move out of line with their fundamental values
Unconventional policy affects both sides of balance sheets
Bank of Japan looks at the size and composition of its balance sheet during its quantitative-easing period
Journal of Economic Review – Riksbank
Riksbank’s third-quarter journal contains articles on the similarities between fiscal and monetary policy, and Swedish money-market premiums
BoJ rate-setter hints at further loosening
Bank of Japan MPC member says the central bank is open to further monetary easing, depending on the situation in markets
BoJ loosens in bid to appease government
Bank of Japan loosens monetary policy at unscheduled meeting to ease tensions between central bank and government
BoE’s Posen wants housing “stabilisers” to control bubbles
Monetary Policy Committee’s Adam Posen calls for existing taxes to work as automatic stabilisers for house prices; argues against leaning against the wind with rates
Fed tiptoes further towards exit
New York Federal Reserve says it will make small-scale reverse repurchase operations in order to test strand of exit strategy
Fiscal stimulus crucial for recovery
Centre for Economic Policy Research (CEPR) compares the Great Depression with the global credit crisis
Aussies hike for third straight month
Reserve Bank of Australia raises rates by a quarter point but hints at hold in coming months
Bank data revives doubts over QE
Bank of England’s key broad money aggregate and lending figures decline
Eurozone inflation turns positive
Official flash estimate puts November annual inflation at 0.6%; turns positive for first time since April
Yuan appreciation calls “unfair”: Chinese premier
Wen Jiabao, the Chinese head of state, accuses critics of the undervalued yuan of hypocrisy
Economic and Financial Developments (November) – Bank of Japan
November instalment of the monthly report finds that the ongoing recovery is fragile and not a result of self-sustaining factors
Korea widens inflation target range
Central bank widens inflation band by 0.5% each way, giving it room to manoeuvre against volatility
Cyprus governor says 2009 GDP will shrink
Prognosis contradicts European Commission's optimism about growth
Brazilian economy on the up, minutes show
Central Bank of Brazil’s policy meeting minutes also show inflation is under control
BoJ minutes reveal growing rift with government
Minutes of the Bank of Japan’s October policy meeting show senior minister questioning policy decisions and stance
The relationship between money, credit and policy
A new paper finds evidence that the relationship between money and credit changed after the second world war
Bank of Canada – Autumn Review
Bank of Canada publishes the latest issue of its economic review
IMF to Hong Kong: beware of bubbles
International Monetary Fund looks at the potential macroeconomic implications for Hong Kong of accommodative monetary policy in the United States