Monetary Policy
Perspectives on deflation
In this issue we present a variety of views on the threat of deflation. Here we offer a summary and our own conclusion.
Interview: Martin Feldstein
In conversation, Professor Feldstein discusses his worries for the European Central Bank's future, who is to blame for the bubble, the US payments deficit and the international monetary system.
Why inflation is still the real danger
Policymakers should not be swayed by recent fears of deflationary spirals and policy impotence. History demonstrates that with fiat currencies, inflation will always be the real concern.
Mr Greenspan's record: where do we go from here?
The recent boom showed that policymakers should be wary of apparent economic "paradigm shifts". Now dealing with the inevitable asset price bust they should not ignore the inflation threat.
Towards a better SDDS
The IMF's SDDS is a good idea, but poorly executed argue Steve Hanke and Matt Sekerke. The authors suggest an alternative accounting standard for central banks.
Insiders and outsiders at the Bank of England
The voting behaviour of members of the Bank of England's monetary policy committee is popularly portrayed as just a "hawks versus doves" dichotomy. The reality is complex reveals Petra Gerlach-Kristen.
Bank of Japan Monthly Report, August 2003
The Bank of Japan published the English version of its Monthly Report of Recent Economic and Financial Developments, August 2003, on 12 August. The BOJ kept its assessment of the economy unchanged after slightly upgrading its view the previous month. …
External monetary policy adviser appointed at RBNZ
The Reserve Bank of New Zealand on Tuesday announced the appointment of Malcolm Bailey as one of the Bank's two part-time external monetary policy advisers.
'Time for clarity, Mr Greenspan'
As the Federal Reserve's FOMC meets Tuesday, this article says it's time for the Fed to be clearer about its growth and inflation targets and its plans to achieve them. Now that short-term rates can scarcely fall further, successful communication is a…
Argentina, IMF seen close to loan deal
Argentina and the International Monetary Fund have made progress in negotiations over the preliminary three-year debt rescheduling agreement, Economy Minister Roberto Lavagna told reporters on Monday Reuters said.
UK inflation rises unexpectedly in July
UK inflation rose to 2.9% in July the National Statistics office said Tuesday according to BizWorld. "The largest upward influence came from clothing and footwear, particularly women's outerwear. This year's summer sales for clothing were not as great as…
Fed expected to keep rates steady at 45-year low
The Federal Reserve is expected to hold short-term interest rates steady when it meets Tuesday USA Today reported, amid recent signs - including faster productivity growth and rising factory orders - that the economy is beginning to accelerate at a…
BOJ sets up panel to check accuracy of statistics
The Bank of Japan is to set up a committee to examine the central bank's statistics for accuracy, Japan Today said. The BOJ acknowledged July 25 that its monthly data on the outstanding balance of CP underwritten by banks were incorrect and would be…
Russian and Mongolian central banks sign agreement
The central banks of Russia and Mongolia have signed an agreement on the settlement of accounts in foreign economic relations between the two countries, Gateway2Russia reported.
Contrasting perspectives on deflation
For this weeks CentralBankNet Special Feature we present a variety of views on the threat of deflation. The well known phrase from former Fed Chairman William McChesney Martin that the job of central bankers is "to take away the punch bowl just when the…
Mboweni on Empowerment and the S African economy
In a speech on 'Empowerment and the South African Economy' given on 6 August Tito Mboweni of the South African Reserve Bank said that it is correct to say that ultimately the functions of the Reserve Bank are to make a contribution towards an environment…
Central Bank of Chile - Annual Report 2002
The Central Bank of Chile has published its Annual Report for the year ended 2002. In 2002 the Central Bank continued to analyse and interact with the financial system to modernize the national payments system, developing a draft real time gross…
RBA Statement on Monetary Policy, August 2003
The Reserve Bank of Australia released its August 2003 Statement on Monetary Policy on 11 August. While the Australian economy remains in a position to perform relatively well against a weak international background, the pace of growth of the non-farm…
Norwegian July inflation drop fuels rate cut hopes
Prices fell 0.4% in Norway in the month to July, according to a report by AFP. The drop in inflation fuelled expectations of an interest cut when Norges Bank meets on Wednesday 13 August.
IMF warns Netherlands of risks to a recovery
The IMF has warned that substantial risks remained to economic recovery in the Netherlands, according to a report by Reuters. It forecast the economy could pick up from later this year and grow 1.4 percent in 2004.
Italian economy dips into recession
The Italian statistics agency Istat said gross domestic product in the euro zone's third-largest economy shrank for the second quarter in a row, putting Italy into a recession, according to Reuters.
Argentina's Lavagna sees draft IMF deal this week
Speaking last week on the three-year loan pact to replace a $6.8 billion IMF emergency agreement that expires on 31 August, Argentine Economy Minister Roberto Lavagna told reporters "The IMF is now working in Buenos Aires and probably we'll have…
Undue pessimism is driving the eurozone recession
This article by Paul De Grauwe in the Financial Times says that the ECB was wrong to blame the eurozone recession on structural factors and scold eurozone politicians for doing nothing to liberalise labour markets and modernise welfare systems. "It is…
Central bank transparency - As clear as mud
Being open and being predictable are rather different things, this article in The Economist finds. Using statistics from polls conducted before central banks' policy meetings it says that the Fed's interest rate changes are the most predictable at 95%,…