Economics
NY Fed reports dip in household debt
New York Federal Reserve says households now owe more than 6% less than in 2008
St Louis Fed: Financial innovation important for growth
St Louis Federal Reserve study says improving best financial practices can boost economic performance
Crisis makes Tokyo more insular
In the first of a six-part series on the Japanese economy, Robert Pringle reports from Tokyo on how the crisis has impacted the nation’s global outlook
Estonia upgraded on euro accession; Ireland knocked down on banks’ weakness
Fitch lifts Estonian credit rating two notches, citing benefits of eurozone membership and strong fiscal performance; Moody’s downgrades Ireland on poor growth projections, worries over bad bank
East Asian, Pacific governors set for 15th annual meeting
Executives’ Meeting of East Asia and Pacific Central Banks gears up for 15th outing in Sydney; regional currency and financial stability issues to dominate agenda
The efficient markets hypothesis: dead and buried?
The efficient markets hypothesis has taken a bruising as a result of the crisis but it may have life in it yet, says Claire Jones
South Africa’s Gordhan stands up for inflation targeting, flexible rand policies
South African finance minister defends central bank’s key frameworks, lauding benefits to credibility and stability
Chinese ratings agency yanks triple-A ratings from US, UK
China’s Dagong Global saddles developed world safe havens with lower ratings on grounds of inability to repay debt; gives China three notch upgrade to AA+
Richmond Fed raises the curtain on the “Fed Experience”
Richmond Federal Reserve gears up for opening of its new permanent exhibit; features interactive displays and commentary on major economic events from Ben Bernanke, Paul Volcker
SNB: Firms factor in effort when determining wages
Swiss National Bank study shows workers derive a psychological benefit from reciprocating a generous wage offer by the firm with harder work
Taking the credit in eastern Europe
Need for credit higher in eastern, than western, Europe, Swiss National Bank research finds
Four risks to growth: Atlanta Fed’s Lockhart
Atlanta Federal Reserve president Dennis Lockhart counts Gulf of Mexico oil spill and commercial real estate sector risks among imminent threats to growth
Trichet on World Cup: I don't mind who wins
Jean-Claude Trichet refuses to declare favourite as two eurozone members vie to scoop soccer's top prize
BIS: currency collapses benefit output growth
Bank for International Settlements study on currency collapses finds devaluation helps growth in the long run, rather than dampening it
RBA: standard Phillips curve better measure of inflation than New Keynesian version
Reserve Bank of Australia study finds traditional Phillips curve model outperforms New Keynesian version in measuring inflation
RBA: Australia’s employment boom had no impact on joblessness
Reserve Bank of Australia study finds labour growth in the past decade served those outside labour force, but not unemployed skilled workers
Azerbaijan to move to DSGE model
National Bank of Azerbaijan will switch to consolidated DSGE framework by year-end; deputy research director says model valued for overall coherence and ability to factor in irrational behaviour
Microfinance not a silver bullet for Africa: Nigeria, Ghana governors
Nigerian governor Sanusi Lamido Sanusi and Ghanaian chief Kwesi Bekoe Amissah-Arthur say credit issuance is constrained by factors other than just access; requires deeper change
Faith in Fed's omnipotence must be challenged, says Rajan
University of Chicago professor and former IMF chief economist Raghuram Rajan slams view that Federal Reserve can “wave a magic wand” to cure United States’ economic ills
Expectations drive house prices
Bank of Spain research finds expectations on both monetary policy and future productivity influence house prices
EXCLUSIVE: We must review how monetary policy impacts prices, says Plosser
President of Philadelphia Fed says central bankers need to rekindle research into monetary transmission in order to better understand relationship between monetary policy and inflation
Interview: Charles Plosser
President of the Philadelphia Federal Reserve tells Central Banking Publications why central banks must review how monetary policy translates into inflation; warns against viewing monetary institutions as omnipotent
Boston Fed on expectations, output and inflation
Research from Boston Federal Reserve shows low marginal cost presses down on inflation even when central bank’s explicit inflation target is clearly communicated and understood
Fed’s Warsh: market panic a signpost, not source of global economic woes
Market volatility merely a signal of how far we are away from the new normal; warns against expecting monetary and fiscal policy to do too much