Opinion
Comment: Testing times for the SARB
After almost three years of stable economic conditions, the South African Reserve Bank faces a new challenge. Widely applauded for its sound management of the economy, the central bank now has to show that it can the do the job when the external…
Comment: Fukui comes out fighting
The governor of the Bank of Japan came out fighting on Tuesday 20 June in response to a public outcry due to a dubious personal investment. Fukui reiterated that he would not bow down to opposition politicians' calls for his head, and squashed rumours…
Comment: A shaky vote of confidence
The Bank of England enjoys solid public backing for its policymaking. This is the main finding of a survey reported in the Bank's latest Quarterly Bulletin. While the Bank will be reassured by this survey finding, more worrying for Threadneedle Street's…
Comment: Eastern European tightrope
Amidst renewed inflation fears in the developed world and the prospects of further interest rate hikes there, a number of central banks in Eastern Europe and the Baltics will be silently grateful for a little bit of latitude. But with question marks…
Comment: May inflation surprise
In a murky environment, this week's inflation data was billed as crucial to providing clarity on the future direction of US interest rates in the months to come. By that logic, another hike in two weeks time is a certainty, with another probably…
Comment: Fukui's gaffe
Bank of Japan governor, Toshihiko Fukui, faces an uncertain future following his admission of a supposedly unethical investment. Even though prime minister Junichiro Koizumi immediately jumped to Fukui's defence, pundits are already saying the incident…
Comment: Hawkish Fed
After a string of speeches by its senior staff this week, the Fed appears to be in an increasingly hawkish mood. The growing perception that that US interest rates will have to rise further could be bolstered by today's release of consumer price data for…
Comment: The housing bubble debate
In a recent working paper for the Czech National Bank Stephen Cecchetti, an economist at Brandeis University concludes that "monetary policymakers have no choice but to face the risks posed by asset price bubbles head on".
Comment: Papademos on asset bubbles
In a speech in Madrid last week, the ECB vice-president, Lucas Papademos, drew a line of distinction between the ECB's policy on asset prices and that of the US Fed. In doing so he sought to communicate that the Issing legacy is firmly in tact.
Comment: Rates on the up
Monetary policymakers from Mumbia to Madrid to Pretoria stepped firmly on the monetary brakes yesterday, with no less than six central banks hiking rates.
Comment: BCCI 'farce' all over
A final line was drawn yesterday under the "farcical" BCCI. The book is closed on the matter with the Bank of England's financial compensation falling short of the amount it said it would push for when BCCI liquidators, Deloitte, dropped its £1 billion…
Comment: Sharing the cost of banking crises
The need for an ex-ante commitment to sharing the cost of cross-border banking crises in Europe is suggested in a speech by Eva Srejber and a paper by Charles Goodhart and Dirk Schoenmaker. But is it feasible?
Comment: In defence of inflation targeting
Writing in the Financial Times this week, Wolfgang Munchau suggests that the "end of inflation targeting is in sight". Munchau points to the shortcomings of the Swedish inflation targeting regime, and draws universal lessons from it. A number of…
Comment: Surprises as ECB reshuffles
The ECB last week surprised analysts by naming ex-Bundesbank official, Jurgen Stark, as head of its economics division. As expected, the central bank has split the management roles for the important divisions of economics and research, both previously…
Comment: Fed ponders communication strategy
The minutes of the US Fed's last monetary policy meeting, released this week, have enhanced the perception of an uncertain FOMC, and strengthened the view that further rate increases will be required. A close look at recent events show that the issue of…
Comment: Replacing Issing
Pressure is mounting on the ECB to finalise the reshuffle of its executive board, necessitated by the departure of its chief economist and head of research, Otmar Issing, this week. The absence of any official announcements on the matter is leading to…
Comment: May in Review
Inflation concerns and financial markets volatility returned in the month of May - central bankers around the world, in both the developed and developing world, are suddenly confronted with a very different environment.
Comment: Reserves management update
How much has changed in the last year in the world of official reserves management? The same issues - the threat of a weakening dollar, central banks' role in bring this about and their response to it, a continuation of the unprecedented accumulation of…
Comment: Volatility returns
Before recovering somewhat this week, stock markets around the world from Bombay to New York to Sydney to Moscow took a beating last week and on Monday. Here is a quick look at some recent arguments on what this means for central bankers.
Comment: The BoE's 'brain on the plane'
David Blanchflower came out fighting Wednesday 24 May in an assured performance before the Treasury Select Committee. The appointment of the US-based academic to the Bank of England's Monetary Policy Committee has been controversial, but he maintains…
Comment: US 'break-even' inflation
News of a sudden increase in inflation fears has made headlines in recent weeks. In the case of the US, some have linked this to idea that new Fed chairman, Ben Bernanke, is perceived as being too soft on inflation. What do the most recent estimates of…
Comment: Issing's parting shot
In his final speech before stepping down as chief economist and member of the executive board of the ECB, Otmar Issing yesterday said the adoption of the euro has prevented damaging currency speculation. He also admitted that he was somewhat of a "euro…
Comment: Safe hands for Fed No. 2 spot
US president George W. Bush opted for a safe pair of hands in the form of Donald Kohn to replace Roger Ferguson as No. 2 at the Fed. Kohn, a 36-year Fed veteran, will be both a countervailing and supplementary force to the more studious Ben Bernanke.
Comment: Emerging market jitters
Emerging markets equities, bonds and currencies have been under severe pressure over the last two weeks. The turning tide will leave a number of central banks uncomfortable, particularly as the favourable conditions of the last 2 and 3 years has actually…