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Central Banks

IMF finds formula for trade-shock recovery

Real exchange rate depreciation, along with improvements in government stability and the institutional environment can lead to a speedy recovery from terms-of-trade shocks, research published by the International Monetary Fund finds.

SWF round-up

The march of sovereign wealth funds on Western financial institutions continued this week with the announcement the Qatar Investment Authority (QIA) will buy a stake in Credit Suisse, a Swiss bank.

Muto: a governor-in-waiting?

Japan's ruling Liberal Democratic Party is expected to nominate Toshiro Muto as the next governor of the Bank of Japan. But opposition leaders continue to resist his nomination.

Sentance warns of slowdown

Andrew Sentance, a member of the Bank of England's Monetary Policy Committee, has warned of the possibility of a "more significant and sustained" slowdown than those of the recent past.

Indonesian governor questioned

Burhanuddin Abdullah, the governor of Bank Indonesia has been questioned over an alleged corruption case which the country's powerful Corruption Eradication Commission believes involves the central bank.

Fed's Evans sees pause in rate cuts

Charles Evans, the president of the Chicago Federal Reserve Bank, said that the recent interest rate reductions taken by the Fed should be sufficient to help promote moderate growth over time and mitigate the risks to economic activity.

Mixed results for inflation targeting

A study by the Bank of Canada finds that the ability of inflation-targeting central banks to hit their targets varies considerably. The study, published in the Bank of Canada's Winter Review, looked at 21 countries over the period 1990 to 2007.

Australia considered bigger rise

Minutes from the February board meeting of the Reserve Bank of Australia show that the central bank considered raising its cash target by a bigger margin than the quarter percentage point rise announced on 5 February.

Reserve managers look to derivatives

A survey by Central Banking Publications, sponsored by the Royal Bank of Scotland, has found that central bank reserve managers are still searching for yield after the recent credit turmoil, and that over half of those surveyed see derivatives as an…

Dynamic pricing and imperfect common knowledge

This paper by Kristoffer Nimark of the Reserve Bank of Australia introduces private information into the dynamic pricing decision of firms in an otherwise standard new Keynesian model by adding an idiosyncratic component to firms' marginal costs.

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