Opinion
Comment: The Fed's 'asymmetric policy'
Donald Kohn said yesterday that the perception that the Fed responds asymmetrically to asset prices is "a misreading of history". Not only has the idea of a 'Greenspan put' been debunked by the experiences of the last five years, but it is also…
Indonesia's dilemma on growth, prices
According to this article published on Tuesday 7 March, the Indonesian authorities are faced with the unenviable task of fighting inflation in a slowing economy.
Comment: Yellen's 'long-run' inflation target
San Francisco Fed president, Janet Yellen, who has emerged as one of Ben Bernanke's strongest allies in the inflation targeting debate at the Fed, provided further insights into what she regards as the optimal design of such a framework in a speech on…
Excess liquidity clinches case for ECB rate rises
According to this recent article, several factors, including a lack of dissenting voices on the ECB Governing Council, have persuaded financial markets in recent days that the ECB is heading faster than previously expected toward an interest rate of 3…
Comment: Serdengecti ousted
The governor of the Central Bank of Turkey, Sureyya Serdengecti's, five year term expired on Tuesday, 14 March and he will not be reappointed. The government is yet to name a replacement, but vice governor, Erdem Basci, appears the most likely candidate.
Confidence in Rome won't be rebuilt in a day
While the Bank of Italy seemed to have become an autocracy under Antonio Fazio, according to this recent article, governance will have to be a priority for the new governor, Mario Draghi.
Comment: Balcerowicz battles on
The president of the National Bank of Poland (NBP), Leszek Balcerowicz, and the ministry of finance are at loggerhead over a hotly debated bank merger. The government wants the deal blocked, Balcerowicz refuses to do so. Even as his first term draws to…
Bank of Japan takes big risk with policy change
According to this article published on Friday 10 March, by ditching its quantitative easing policy the Bank of Japan may be making one of the biggest mistakes in its history.
Comment: Unravelling the BoJ message
The Bank of Japan put an end to its "quantitative easing" policy last week. Although the timing was slightly ahead of expectations, the move itself was widely anticipated. Attention has now turned to unravelling the implications of the central bank's new…
Comment: Measuring financial fragility
Central banks and regulators have created well-staffed financial stability departments, producing voluminous reports and reviews. However, policymakers are not always sure what they are aiming at in this opaque, but systemically important, area. New…
Fed's Stern doesn't see inflation accelerating
According to this article published on Monday, 6 March Minneapolis Fed president Gary Stern is about as relaxed regarding inflation as a central banker can be.
Comment: Has the ECB become more credible?
A recent New York Fed staff paper finds that market perceptions of the ECB's "inflation aversion" have improved significantly over the last six years, reflecting the idea that monetary policy has been guided by a dedication to price stability.
Bush quietly reshaping the Fed
Few presidents have had the opportunity to shape the Federal Reserve the way President Bush has this year, according to this article published Friday. And once Bush replaces Ferguson, it says, four of the Fed's seven governors will have taken office in…
Fed veteran Kohn seen as candidate for No. 2 slot
According to this article published Thursday 2 March, Donald Kohn is seen as a top contender for the Federal Reserve's No. 2 spot. Kohn's connection with Alan Greenspan's largely successful tenure is likely to be seen as a plus within the White House, it…
What is Japan's quantitative easing?
With the possibility of the Bank of Japan's quantitative easing ending soon, this article published 7 March Tuesday looks at the policy in detail and asks, 'What comes next?'
Comment: Busy week for policymakers
This week is a busy one for monetary policymakers, with policy meetings taking place in Japan, the United Kingdom, Canada, Australia, New Zealand and Indonesia. Here is a brief look at what's been on the mind of central bankers in these countries.
Dollar fall to encourage central bank cooperation
In an interview published on Friday 3 March, John Nugee of State Street Global Advisors said the world's central banks are likely to start working more closely together as they try to manage the impact of an expected long-term decline in the value of the…
Interview with Minneapolis Fed's Gary Stern
In an interview with MarketWatch conducted on Friday 3 March, Minneapolis Fed president Gary Stern said he supports a formal inflation target to "lock in" current good policy practices, but he doesn't see any urgency in making changes. Stern also gave an…
Comment: BoJ to end QE this week?
Friday's inflation data has added to feverish speculation that the Bank of Japan (BoJ) will end its "quantitative easing" policy later this week. However, the departure from its zero-interest rate policy is still months off and the question of the…
Japan's debt straitjacket is out of style
Amid the euphoria over the end of deflation and a likely change in the Bank of Japan's policy, this recent article says it's easy to forget that Japan remains addicted to borrowed money.
Comment: Communication and predictability
Two recent studies investigate the effects of more open communication strategies at both the Fed and the ECB on the predictability of subsequent interest rate decisions. The conclusions reached differ considerably.
Greenspan moved markets less
According to the article 'Greenspan moved markets less as Poole, Kohn gained influence' published Wednesday, new research shows former Federal Reserve Chairman Alan Greenspan's speeches moved the bond market less in 2005 than in prior years as William…
DAS: Why is CBN fooling Nigerians?
According to this article published on Monday 27 February , the various exchange rate mechanisms whether christened FEM, IFEM, AFEM, or DAS, could never claim to be truly market determined and have all without exception, eventually led to the…
West's gold vanishing in China once again
China will soon release statistics showing that it has passed Japan as the biggest holder of foreign currency the world has ever seen, according to this article published on Sunday 26 February.