Monetary Policy
Tumpel-Gugerell on the euro's success & challenges
In a speech 'Six years after the euro: Success and challenges' given on 5 November, Gertrude Tumpel-Gugerell of the ECB said excessive volatility in the foreign-exchange market is "not beneficial" and can be "painful" for exporters.
Bergstrom: Riksbank to blame for unemployment?
In a speech titled 'Is the Riksbank to blame for unemployment?' given on 4 November Villy Bergstrom of the Sveriges Riksbank said all factual criticism of the Riksbank's forecasts is good, but there's a risk of concentrating the debate on our interest…
The Mussa Theorem & IMF induced moral hazard
Using a simple model of international lending, this IMF Working Paper shows that as long as the IMF lends at an actuarially fair interest rate and debtor governments maximize the welfare of their taxpayers, any changes in policy effort, capital flows, or…
NBU chief downbeat on common currency idea
The acting head of the National Bank of Ukraine, Arsen Yatsenyuk, said in an interview that there can be no question of introducing a common currency with Russia.
Taylor predicts smooth deficit adjustment in US
US Treasury Under secretary John Taylor has said he expects a smooth adjustment in the large US current account deficit. While some have bemoaned the increase in the deficit, Taylor said it was good news.
IMF's Rato calls on Bush to work on deficits
IMF managing director Rodrigo Rato was quoted as saying on Friday 5 November that newly re-elected US president George Bush should turn his attention to the country's budget and trade deficits as part of a global push to spur growth after winning re…
Italy's Fazio sees 2005 growth less than 2%
Bank of Italy governor Antonio Fazio told a conference he expects GDP in the third quarter to have risen 0.3 pct from the previous quarter, and forecast Italian growth of less than 2 pct for the whole of 2005.
RBA fights to preserve secrecy
The Australian newspaper is attempting to have released the minutes of the Reserve Bank of Australia's meetings and voting records for 2003/04 released under Australia's Freedom of Information laws. But the nine-member board -- whose six external…
The roughest terrain in China's central banking
This article makes comparisons between China's first interest-rate increase since 1995 recently and the actions of Paul Volcker at the Federal Reserve back in October 1979. PBOC governor Zhou Xiaochuan needs to bring fresh thinking and unconventional…
Fed Reserve Bank of St Louis Review, Nov/Dec 2004
The latest edition of the St Louis Fed's Review for November-December 2004 includes the article "Monetary policy and asset prices: A look back at past U.S. stock market booms" which examines the economic environments in which past U.S. stock market booms…
IMF paper: new taxonomy of monetary regimes
This IMF Working Paper proposes a new taxonomy of monetary regimes defined by the choice and clarity of the nominal anchor. The regimes are: (i) monetary nonautonomy, (ii) weak anchor, (iii) money anchor, (iv) exchange rate peg, (v) full-fledged…
ECB paper on transmission of monetary policy
This ECB Working Paper examines possible explanations for observed differences in the transmission of euro area monetary policy in central bank large-scale macroeconomic models. It finds that, against most yardsticks, the cross-country variations in the…
ECB press conference with questions and answers
At the ECB's post-meeting press conference on Thursday 4 November, after eurozone interest rates were held unchanged, Jean-Claude Trichet gave a tougher warning about the immediate inflationary dangers ahead, calling a recent jump in consumer prices a …
PBOC deputy says China to continue yuan reform
China plans further measures to reform the exchange rate, the official Financial News reported, citing Li Ruogu, deputy governor of the People's Bank of China, the country's central bank.
Argentina passes financial system reform package
Argentine central bank president Martin Redrado and four local banking associations, ABA, ADEBA, ABAPPRA and ABE have approved a new banking sector reform package called Compensacion Federal Uniforme, the central bank said in a statement.
ECB, BOJ officials to join bilateral meeting
Officials from the European Central Bank and Bank of Japan will for the first time participate in the annual vice ministerial meeting in Tokyo on 11 Nov. to discuss foreign exchange developments and China's dollar-pegged currency system, EU sources said…
Mexico's interest rates set to rise further
Mexico's central bank Deputy Governor Jesus Marcos Yacaman has said the country will continue to raise interest rates following seven increases this year, in order to bring down inflation.
Fed's Ferguson on business investment
In a speech on 'Factors influencing business investment' given on 26 October, Roger Ferguson of the Federal Reserve said US businesses are discarding their earlier caution and investing more in capital goods and structures.
Argentina's Redrado on cb's 6-yr goals
In a speech on 'Central Bank of Argentina's key mission for the next six years' given on 5 October, Martin Redrado of the Central Bank of Argentina said our goals are to consolidate price stability and restore the peso's role and value. Create a…
Riksbank's Rosenberg on monetary policy
In a speech on 'Monetary policy and the conditions for growth' given on 1 November, Irma Rosenberg of the Sveriges Riksbank said the Riksbank sees Swedish GDP growth of 2.0-2.5 pct over the longer term.
State Bank of Pakistan - Annual Report 2003-2004
The State Bank of Pakistan has published its Annual Report for the year 2003-2004. The annual report said strong GDP growth in 2003-04 was led by the large-scale manufacturing sector, which was fuelled by higher demand stemming from a record growth in…
Asian central banks on the horns of policy dilemma
These are tricky times for Asian central banks, this article reports. With semi-public wranglings between central banks and finance ministries, this is one of the least predictable environments for policy forecasting since the 1997-98 Asian financial…
Norges Bank Inflation Report, November 2004
Norway's central bank, Norges Bank, has published its latest Inflation Report for November 2004. The report said the effects of high oil prices on the Norwegian economy are mixed. Lower external demand will have a negative impact on some Norwegian…
Romanian central bank lowers rates
Romania's central bank has announced that it has lowered its key interest rate by 0.5 percentage points to 18.25%.