Central Banks
The political economy of seigniorage
While most economists agree that seigniorage is one way governments finance deficits, there is less agreement about the political, institutional, and economic reasons for relying on it, according to the IMF Working Paper published Tuesday.
RBA to dispose of gold coin holding
The Reserve Bank of Australia said on Wednesday 21 September that it has decided that it does not need to continue to hold the large quantity of gold coins it has held for many years.
Fed hikes rates again, but Olson dissents
The FOMC decided on Tuesday 20 September to raise its target for the federal funds rate to 3.75%. In a statement it maintained its 'measured' pace for removing policy accommodation and revealed that Mark Olson had voted to keep rates unchanged.
Bank of England's MPC united on rate vote
Minutes from the Bank of England's 7 and 8 September meeting released on Wednesday 21 September showed policy makers voted unanimously to keep interest rates unchanged.
Nickell on practical issues in UK monetary policy
In the speech 'Practical issues in UK monetary policy, 2000-2005' given on 20 September, Stephen Nickell of the Bank of England said the Bank could not have prevented Britain's house-price boom without harming economic growth.
South Africa plans no change to inflation target
Treasury Director General Lesetja Kganyago has said South Africa has no plans to modify its inflation targeting framework to aim for the middle of the established three to six per cent target range.
New Bank of Israel law agreed
The Israeli government has agreed to the wording of a new Bank of Israel Law that would transfer responsibility for setting interest rates from the central bank governor alone to a monetary committee.
Central Bank of Argentina - a changed view on gold
This article published Monday 19 September says the Central Bank of Argentina has now changed its philosophy and was a purchaser of gold during 2004 as it reshaped its portfolio and may consider taking more in the future along with other Latin American…
Comment: Gold stages a comeback
With the gold price hitting 18-year highs, it is about time there was serious re-thinking among central bankers with regards to holding gold as a part of their reserve portfolios.
Monetary policy predictability in the euro area
This Norges Bank Working Paper evaluates the ability of market participants to anticipate monetary policy decisions in the euro area and in 13 other countries.
Policymaking on the FOMC: Transparency, Continuity
This Economic Letter is adapted from remarks by Janet Yellen, President and CEO of the San Francisco Fed, made on 31 May. Yellen says over the past decade, the FOMC has continually re-assessed the costs and benefits of various steps toward greater…
EU calls for single payment area by 2010
Charlie McCreevy, the European Commissioner for the Internal Market and Services said on Tuesday 20 September that banks must create a single pan-EU system for payments by 2010, a demand the European Commission will underpin by legislation.
Fed will raise rates and indicate more to come
According to an article published on Monday 19 September, the Federal Reserve's FOMC committee will increase interest rates on Tuesday, with financial markets gradually accepting that the effect of Hurricane Katrina won't deter them.
BoE's Walton on monetary policy challenges
In the speech 'Monetary policy challenges facing a new MPC member' given on 16 September David Walton of the Bank of England said it has been a very interesting, and challenging, time to join the MPC.
Comment: Divergence and monetary policy
The issue of regional economic divergence continues to attract much attention from policymakers and academics studying the eurozone. The issue is particularly important for the ECB, as it is often mentioned that divergent economic performance across…
Colombia central bank plans reserves sale
Colombia's central bank said on Friday 16 September it cut interest rates by half a percentage point and would sell at least $3 billion in international reserves to the government.
China's forex regime poses fresh puzzle
An article published on Tuesday 13 September says China's new rules for its currency regime could mean the country may be forced to battle the nearly $2 trillion-a-day global forex market to try to control the dollar, euro and yen exchange rates.
Time to go, Mr. Fazio
The agenda set out in this article published Monday 12 September is clear. Bank of Italy governor Antonio Fazio must go. Even if nobody can legally force him out, the campaign for his resignation will not go away, it says.
World Bank names Europeans to top posts
World Bank President Paul Wolfowitz named two Europeans to senior positions at the development lender on Friday 9 September.
Fed schedule suggests Greenspan January exit
The Federal Reserve has shortened its planned two-day monetary policy meeting for 31 Jan - 1 Fed down to one day, suggesting Alan Greenspan will leave the Fed then.
Interview with Bundesbank's Weber
In an interview published on Saturday 10 September Deutsche Bundesbank president Axel Weber said Germany could learn a lot from Britain's success in reducing unemployment to such low levels.
Greenspan successor to face tough economic climate
Until recently it seemed that Alan Greenspan's successor at the Federal Reserve would have a fairly easy ride at first. But according to an article published this week, that seems like a distant memory now that Hurricane Katrina has sent gasoline,…
Place your bets! Will Fazio stay or go?
A Swedish online gambling website is offering odds on whether embattled Bank of Italy governor Antonio Fazio will stay in office beyond the start of October.
Greenspan, the Wizard of Bubbleland
This lengthy article published on Wednesday 14 September covers a lot of central banking ground. Greenspan's measured-paced interest-rate policy is a reversal back to the Fed's tradition of gradualism, it says, but the debt cancer is spreading faster…