Monetary Policy
IMF paper on cb losses in selected countries
The IMF Working Paper "Central bank losses and experiences in selected countries" April 2005 says that under normal circumstances, a central bank should be able to operate at a profit with a core level of earnings derived from seigniorage. However,…
Fed's Kohn on imbalances in the US economy
In a speech on 'Imbalances in the US economy' given on 22 April, Donald Kohn of the Federal Reserve said the central bank would likely keep pushing US interest rates up at a "measured pace" to keep inflation under control.
SARB Financial Stability Review, March 2005
The South African Reserve Bank has published the March 2005 edition of its Financial Stability Review. In its latest report the SARB says the resilience of the global financial system improved further during the second half of 2004, mainly as a result of…
Chicago Fed National Activity Index, Mar 2005
The Chicago Fed National Activity Index for March 2005 was +0.11, down from +0.22 in February. Three of the four broad categories of indicators that comprise the index made positive contributions last month, according to the CFNAI.
Fed's Fisher says tariffs hurt inflation fight
Imposing tariffs on imports to the United States would hurt consumers and hamper attempts to control inflation, the president of the Federal Reserve Bank of Dallas said in a column in The Wall Street Journal on Monday 25 April.
PBOC's Zhou suggests faster yuan shift
Zhou Xiaochuan, governor of the People's Bank of China, said at the weekend that the government was still working on the "sequencing" of a potential move to a more flexible exchange rate but acknowledged that encouragement from abroad could result in a…
Bundesbank may cut further 1,100 staff
According to the Bundesbank's works council the German central bank is planning to cut a further 1,100 jobs to add to the 5,000 redundancies already announced.
Deputy BoB governor explains his departure
The deputy governor of the Bank of Botswana, Dr Keith Jefferis, resigned from the bank earlier this month after five years of service. In this article he explains the reasons for his departure, saying that he chose to leave because he wanted to set up…
After Greenspan: Ben Bernanke?
Despite strong support from the likes of Alan Blinder, Ben Bernanke is still seen as a dark-horse candidate for chairman of the Federal Reserve, according to this article. While Bernanke's move to the CEA has prompted talk that he is "one step closer" to…
Bini Smaghi wins MEPs' backing for ECB post
The Economic and Monetary Affairs Committee has approved the nomination of Lorenzo Bini Smaghi to the Executive Board of the European Central Bank. At the end of a confirmation hearing on 19 April, committee members voted by 16 in favour to 2 against…
Clarida tipped as new Fed governor
According to several reports this week, the White House is considering former US Treasury official Richard Clarida for the Federal Reserve seat that would be free if Fed Governor Ben Bernanke is confirmed to the CEA.
BSP deputy governor Reyes retires
Bangko Sentral ng Pilipinas deputy governor Alberto V. Reyes retired from his post as head of the Supervision and Examination Sector this week, a post he had held for ten years.
Link between central bank independence & inflation
This IMF Working Paper published on 21 April reviews central bank legislation in 24 countries in Latin America and the Caribbean during the 1990s. Using panel regressions, the authors find a negative relationship between legal central bank independence …
Fed's Gramlich on growing retirement costs
In the speech 'A first step in dealing with growing retirement costs' given on 21 April, Edward Gramlich of the Federal Reserve said the United States should remove a cap on wages subject to the Social Security payroll tax and raise the retirement age to…
Sweden's Srejber on market rate developments
In a speech on 14 April, Sveriges Riksbank deputy governor Eva Srejber said that despite a gradual rise in growth since 2001 in Sweden and abroad, long-term interest rates have fallen to low levels in many OECD countries.
Canada's Dodge on the state of the economy
In a speech to the Standing Senate Committee on Banking, Trade and Commerce given on 20 April, David Dodge of the Bank of Canada said the bank expects Canada's economy to grow by about 2.5% in 2005 and 3.25% in 2006, with growth this year and next coming…
Cleveland's Pianalto says hikes on way to neutral
Speaking on Thursday 21 April, Sandra Pianalto, President of the Cleveland Fed said the Federal Reserve will continue its measured pace of interest rate hikes to bring rates back to neutral and preserve price stability, its most important task.
World Bank says China exchange rate move welcome
The World Bank has said it supports China's plan to move towards a more flexible exchange rate system as it would help the government with the conduct of its domestic monetary policy.
Fed chief says China rate move should come soon
Fed chairman Alan Greenspan told the US senate on Thursday 21 April that growing economic pressure will force China to change its policy of pegging its currency to the dollar at some point, and the sooner it happens the better.
Tanigaki says inflation targeting debate important
Japanese Finance Minister Sadakazu Tanigaki said Friday 22 April that it would be important for the Bank of Japan to consider inflation targeting as a monetary policy option once the country overcomes deflation.
Richmond Fed's Lacker on consumer finance
In a speech given on 7 April Jeffrey Lacker of the Federal Reserve Bank of Richmond said one of the primary functions of financial markets is to allocate risk. In consumer finance, borrowing and saving are important tools in households' efforts to…
NY Fed's Geithner on financial integration
In a speechon 'Financial integration and its implications for international cooperation' given on 19 April, Timothy Geithner of the Federal Reserve Bank of New York said financial integration offers great benefits but requires stronger national…
Sweden's Persson: Employment in a globalised world
In a speech on 11 April, Sveriges Riksbank deputy governor Kristina Persson said as a small open economy that produces high value added goods and services, Sweden should be well capable of meeting restructuring pressures in the future.
Federal Reserve Board - Beige Book, April 2005
The Federal Reserve published its April 2005 Beige Book survey on Wednesday 20 April. The report said US business activity continued to expand through early April, but price pressures from rising energy costs have intensified in some areas.