Monetary Policy
IMF Working Paper on central bank independence
The IMF Working Paper "A Political Agency Theory of Central Bank Independence" proposes a theory to explain why, and under what circumstances, a politician gives up rent and delegates policy tasks to an independent agency. The authors apply this theory…
Interview with Bank of England's Paul Tucker
In an interview with Dow Jones, Paul Tucker said that the outlook for the world economy remains uncertain. Tucker, who sits on the Bank of England's Monetary Policy Committee, spoke of a "delicately poised" domestic and international economy but said…
Bank of Japan plans to open office in China
The Bank of Japan plans to open an office in China, according to Bloomberg. In a statement the BoJ said "China is playing a growing role in the global economy and its ties with the Japanese economy are also becoming stronger".
Interview- National Bank of Serbia's Kori Udovicki
In an interview with the Financial Times. the newly appointed governor of the National Bank of Serbia, Kori Udovicki, said she would resist pressure from the government, if it came, to invest the central bank's foreign exchange reserves. She intends to…
PBOC: Improvements needed to prevent inflation
The People's Bank of China said in a press release on Monday 28 July that the central bank needs to improve its monetary policy decision making in order to maintain the stability of the yuan. Instability of monetary policy will "significantly erode the…
BSP makes wish list to Congress
Bangko Sentral ng Pilipinas Governor Rafael B. Buenaventura told reporters that the central bank has a wish list of five pending bills it wants to be passed by Congress but admitted only one was likely to go through before May next year, according to a…
ECB expected to rest with rates on hold
The European Central bank is expected to hold interest rates steady when it meets on Thursday 31 July, according to AFP, but analysts said on Tuesday 29 July it will probably cut in September when it returns, to stimulate the euro zone economy further.
Euro-zone central banks and their euro windfalls
The Financial Times was quick to pick up on CentralBankNet's Monday special report on euro zone central bank's windfall profits from legacy currencies still in circulation and presumed lost down the back of Europe's sofas.
Fed McTeer: Econ helped by monetary, fiscal policy
Dallas Fed chief Bob McTeer said Tuesday "we would do whatever is necessary" to stimulate growth but he didn't think there was any likely scenario in which the Fed would be forced to adopt extraordinary measures such as heavily increasing purchases of…
New Serbian governor asserts independence
Did the Serbian government give Mladjan Dinkic the boot because of his questionable running of the central bank? If so, his successor won't last long. Energy minister Kori Udovicki who has been chosen to take his place told the Financial Times, "I will…
Another one for the ladies
CentralBankNet notes that Udovicki's appointment pushes the number of the world's lady central bank governors a little more comfortably into double figures, now numbering a still rather paltry eleven. She joins Bodil Nyboe Andersen as Europe's only other…
Meltzer magic
Allan Meltzer and the dear old Bretton Woods twins haven't always been on the best of terms. As he told Central Banking journal barely a year and a half a go: the world bank's inefficiencies were a "scandal"; in many of its activities it "contributes…
Macfarlane goes for a decade
Ian Macfarlane, the governor of the Reserve Bank of Australia, is buckling down for another term - but not a full one. At the age of 57, it seems that the prospect of another whole seven-year term would have been a bit much, so he put a bid in for a…
BIS increases transparency
Something which has largely escaped people's notice amid the flurry of recent changes at the BIS is that it has now declared the salaries of its senior management. This is consistent with its more general drive for greater transparency, since, as the new…
Straight talking from Zhou
Straight monetarist talk these days is considered controversial in certain circles; and you would not expect to hear it coming from the mouth of the governor of the central bank of China, with all the country's communist traditions. But the "moderniser"…
Quote of the week from Hormats
"Had there been an IMF in the 1850s to insist that the United States create a strong central bank, its advice would have been bitterly resisted by many Americans".
Chicago Fed's Moskow on U.S. Economic Forecast
In a speech on 'U.S. Economic Forecast' given on 28 July Michael Moskow of the Federal Reserve Bank of Chicago said the road to recovery has been bumpier than expected. But we believe that the monetary policy we have put in place will support demand and…
Australian Treasury on Macfarlane's reappointment
Statement by Australian Treasurer Peter Costello on the reappointment of Ian Macfarlane as Governor of the Reserve Bank of Australia, 29 July.
RBA statement on the conduct of monetary policy
Second statement on the conduct of monetary policy from the Treasurer and the Governor of the Reserve Bank of Australia, July 2003. The statement is designed to continue to foster a better understanding, both in Australia and overseas, of the nature of…
When great minds should not think alike
Committees are not necessarily the best recipe for good policy outcomes, this article in the Financial Times suggests. After Rachel Lomax joined the Bank of England's Monetary Policy Committee and immediately ruffled some feathers by dissenting from the…
Serbia's central bank governor braves crossfire
In an interview with the Financial Times at the weekend Kori Udovicki, the recently appointed governor of the Serbian national bank pledged to carry on former governor Mladjan Dinkic's "strict monetary policy" and "just as strict, if not stricter,…
Zimbabwe cash crisis deepens
Zimbabwe's opposition leaders have called the country's bank note crisis "an emergency of the highest order" as riot police control bank queues, according to a report by Sapa AFP. Many banks are now limiting cash withdrawals to 5 000 Zimbabwe dollars as…
'Arch-dove' proposed to Poland's monetary council
Poland's ruling SLD party has named current Deputy Finance Minister Jan Czekaj as its candidate to fill the vacancy on the national bank's interest rate-setting Monetary Policy Council (RPP), according to an Interfax report. The Polish government has…
Ian Macfarlane reappointed chief of RBA
The governor of the Reserve Bank of Australia, Ian Macfarlane, was reappointed on Tuesday 29 July for a further three years rather than the usual seven year term, reports The Australian. The reappointment decision was widely expected with few alternative…