Opinion
Comment: When 364 economists were wrong
It is rare to find two economists who can agree on anything, but in 1981 no less than 364 British economists agreed to write an open letter condemning the tightness of that year's budget. Amongst them: a certain Mervyn King.
Comment: Passing the buck
The current outcry over American intelligence officials' access to private information linked to international money transfers has raised some thorny issues over who regulates the international messaging and financial telecommunications group, SWIFT.
Comment: Bold CBT holds its breath
After another emergency meeting over the weekend the Central Bank of Turkey has raised interest rates by 225 basis points (bp). This has taken interest rates to 17.25%, following an initial hike of 175 bp earlier this month. Will this bold move make any…
Comment: Wanted: experienced US central banker
The perception of a "Fed in flux" has been strengthened by the departure of two more senior officials. With the unprecedented rate of turnover in personnel, the Fed now appears somewhat short of experience. Chairman Ben Bernanke's job could be made…
Comment: Vacant BoE MPC seats
Following the sad and unexpected news of the death of David Walton, a member of the Bank of England's Monetary Policy Committee, the British Treasury has yet another appointment to make.
Comment: Uganda eyes inflation target
The Bank of Uganda will implement an inflation-targetting framework in the near future, the governor of the central bank, Emmanuel Tumusiime-Mutebile, told CentralBankNews.com. Only a lack of adequate and timely data is holding it back.
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…