Central Banks
Improving monetary policy with inflation targets
In the Bank of Canada Working Paper "A Simple Test of Simple Rules: Can They Improve How Monetary Policy is Implemented with Inflation Targets?" the authors evaluate whether an assortment of simple rules could improve how the Bank of Canada implements…
Central bank declares Afghani sole legal tender
From Tuesday October 8, Afghanistan will no longer accept the US dollar and other foreign currencies as legal tender, according to VOA News. Central Bank Governor Anwar ul-Haq Ahady said that new stability has allowed him to make the move, at last, to an…
Bank of England Court to meet in Nottingham
The Court of the Bank of England is to meet in Nottingham at the Council House on 15 October 2003. The meeting is part of a programme of formal meetings of Court outside London.
ECB adopts new regulations on minimum reserves
The Governing Council of the European Central Bank has adopted new regulations on money and banking statistics and the application of minimum reserves, 7 October.
ECB to study one and two euro coin option
The European Central Bank said on Tuesday 7 October that it will consider replacing one and two euro coins with notes following calls from some eurozone countries, according to Associated Press. Bank president Wim Duisenberg has agreed, the ECB said,…
Ex-BoE governor George joins Nestle board
Former governor of the Bank of England Sir Edward George has swapped gold bars for chocolate bars after being appointed to the board of Nestle, the world's largest food and confectionary company, according to the Daily Telegraph. He follows in the wake…
Kansas City Fed's Hoenig sees solid growth ahead
Speaking on Tuesday 7 October, Kansas City Fed chief Thomas Hoenig said that the Federal Reserve's current policy stance was appropriate for an economy that needed to grow faster than its long-run sustainable pace in order to bring down the unemployment…
Australia's reserve bank holds rates steady again
The Reserve Bank of Australia held interest rates unchanged for the sixteenth month in a row on Wednesday 8 October, according to Pacific Business News. The rate remained at 4.75 per cent despite fears of a housing bubble.
HKMA intervenes to defend currency peg
The Hong Kong Monetary Authority, according to Channel News Asia, has spent HK$300 million (US$40 million) defending its currency peg against speculators in the past week. Newly-appointed deputy chief William Ryback said it was comfortable with the…
Engle, Granger win Nobel prize for economics
The Nobel prize for economics, established by Sweden's central bank in 1968, was awarded to Robert Engle and Clive Granger on Wednesday 8 October, according to Associated Press, for their work on time series modelling and co-integration, where time…
Broaddus: The Economy Where is it Headed and When?
In a speech on 'The Economy: Where is it Headed and When?' given on 30 September J. Alfred Broaddus of the Federal Reserve Bank of Richmond said "When I fire up my lawn mower each weekend, the engine usually runs a little roughly for a minute before it…
Chicago Fed's Moskow on manufacturing
In a speech given on 30 September, Michael Moskow of the Federal Reserve Bank of Chicago said distinguishing whether the decline in manufacturing is simply related to near-term fluctuations in the business cycle or part of a larger structural change can…
Bond markets and long-term interest rates
The European Central Bank published the second edition of a report entitled "Bond markets and long-term interest rates in European Union accession countries" on 6 October. This update presents the results of a recent survey, which was designed jointly by…
Welteke at the 2003 IMF/World Bank Annual Meeting
In a speech at the 2003 IMF/World Bank Annual Meetings in Dubai given on 23 September, Ernst Welteke of the Deutsche Bundesbank said we have to make sure that the economic upswing stabilizes and broadens in a sound financial environment. The IMF and the…
Payment systems in Russia
The Committee on Payment and Settlement Systems (CPSS) has published, under the aegis of the Bank for International Settlements, a reference work on payment systems in Russia, known as the Red Book. As part of this series, the Foreword says, the first…
Interview with central bank governor, Congo DR
Interview with the governor of the Central Bank of the Democratic Republic of Congo, Jean-Claude Masangu Mulongo. In the interview, published by IRIN News, the Governor talks about the introduction of the new 10- and 20-Congolese franc bank notes, and…
Calls for notes to replace low value euro coins
European finance ministers have called for the introduction of low value euro notes instead of coins to reduce pressure on inflation, according to a report in the Financial Times. The idea is that people do not value coins highly and are therefore more…
China's PM defends currency peg
China's premier Wen Jiabao has said that China's policy of pegging the yuan to the US dollar was "based on market demand and supply and is in line with China's reality", according to a BBC report. "To keep the renminbi (yuan) stable at an appropriate and…
Aus dollar up as RBA ponders rate rise
The Australian dollar rose sharply higher on speculation that the Reserve Bank of Australia would raise interest rates on Wednesday 8 October for the first time in 15 months, the Daily Telegraph reported. However traders dismissed the talk, saying the…
Germany's Eichel says European economy improving
German finance minister Hans Eichel has said Europe needs stability and growth, according to AFX Europe. Bank of France governor Jean-Claude Trichet said at the meeting of French and German finance ministers and central bank governors that the ECB puts…
Boardroom split at the Reserve Bank
SPECIAL FEATURE - Until recently, the question of whether banks or other firms should combine the role of chairman and CEO was one on which well-intentioned people would differ. UK corporate governance codes favour a split. US companies tended to combine…
Remsperger on inflation differentials in the EMU
In a speech on 'Inflation differentials in EMU: causes and implications' given on 13 September, Hermann Remsperger of the Deutsche Bundesbank said the ECB's Governing Council, in its recent clarification of its monetary policy strategy, spelled out its…
Bergo on monetary policy and business cycles
In a speech on 'Monetary policy and business cycles' given on 25 September, Jarle Bergo of Norges Bank said since December last year, monetary policy has been eased to a greater extent and more rapidly than has been customary. Following this phase of…
Chicago Fed's Moskow on the U.S. Economic Outlook
In a speech on the 'U.S. Economic Outlook' given on 2 October, Michael Moskow of the Federal Reserve Bank of Chicago said the road to recovery is often bumpy and this time has been no exception. But, time and time again our economy has proven itself…