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Monetary Policy

Mervyn King - a governor in distress

No governor of the Bank of England in living memory - and very few governors of any industrial country - has come in for such an avalanche of media criticism as Mervyn King has suffered in recent days.

Latvia leaves rates unchanged

The Bank of Latvia decided on 13 September to leave key interest rates unchanged, with the refinancing rate remaining at 6%, overnight loans at 7.5% and the overnight deposit rate at 2%.

Fed looks set to lower interest rates

Ben Bernanke, the US Fed chairman, and his central bank colleagues meet on Tuesday to make their next decision on interest rates, and appear set to lower the 5.25% federal funds rate to prevent a housing collapse and credit crunch from forcing the US…

Bank of Korea admits to monetary policy problems

Lee Seong-tae, governor of Bank of Korea, said the central bank has problems in carrying out monetary policy effectively because of cross-border capital transactions that lead to increases in the money supply in spite of rises in key interest rates.

Allan Meltzer dismisses calls for Fed action

The following article by Allan H. Meltzer, university professor of political economy at Carnegie Mellon, and a member of Central Banking's editorial board, was published in the Wall Street Journal on September 15. It provides an incisive analysis of the…

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