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Opinion

Comment: Activism the ECB way

Yesterday, 9 November, Jean-Claude Trichet explained how the ECB's decision to leave interest rates unchanged for more than two years should not be equated to non-activist monetary policy.

Comment: Who's to blame for global imbalances?

The issue of the global economic imbalances has become a very political one. Does the current system of largely floating exchange rates allow for a resolution based on careful economic analysis or are we destined for a prolonged series of political…

Fed may be on road to neutral monetary policy

The Federal Open Market Committee will make the 13th consecutive rate increase at its next meeting on 13 December, as it continues on its way to the so-called neutral level, according to this article published on Wednesday 2 November.

King seeks vengeance for 12-year siege

The governor of the Bank of England, Mervyn King, left no one in any doubt that he wanted vengeance against those who had pursued the Bank and 22 of its staff for 12 years, this article published Thursday 3 November notes.

Comment: Greenspan's parting shot

Alan Greenspan yesterday delivered his final Congressional testimony. Apart from an unsurprising, cautiously optimistic message on the short-run prospects for the U.S. economy, his parting shot came in the form of a stern warning to Congress that it…

The myth of the all-powerful Fed

Despite the outsized attention that any utterance from the Fed chair typically gets, the economic world isn't controlled by one person, or even one institution, this article published on Tuesday 1 November notes.

Comment: The Old Lady prevails

Deloitte, the liquidators of the Bank of Credit and Commerce International (BCCI), yesterday unconditionally withdrew all allegations of malfeasance on the part of the Bank of England and 22 of its present and former staff members related to the BCCI's…

Comment: Inflation jitters discounted

Bond yields have been rising rapidly as a result of jitters that rising oil prices will lead to higher inflation than previously expected. Stephen Roach, chief economist at Morgan Stanley, argues that the bond market has got it wrong - the global economy…

Alan Greenspan gives Ben Bernanke some pointers

This article published on Monday 31 October carries a supposed conversation between Alan Greenspan and Ben Bernanke. It says that, according to press reports, Greenspan wanted Donald Kohn to head the Federal Reserve instead of Bernanke.

Bernanke's models, and their limits

This article published on Sunday 30 October asks what Ben Bernanke's academic work can tell us about the sort of Fed chairman he will make. He has written repeatedly about ways of using dauntingly complex mathematical models of the economy to set…

Comment: Japan sees return to normal

Japan's monetary policymakers yesterday delivered another instalment of what is becoming an increasingly confident message: after seven years of deflation, they expect prices to start rising again early next year.

Bernanke needs tips from Ian Macfarlane

According to this article published on Wednesday 26 October, President George W. Bush has passed up the chance to put a decent central banker in charge of the Federal Reserve Board. Big Mac is well known in Washington - a central banker's central banker,…

Comment: Turkey treads path towards EU

The decision by the European Union to open membership talks with Turkey earlier this month is "the end of a long beginning", according to the central bank governor, Sureyya Serdengecti. Nonetheless membership is hardly around the corner.

Comment: Talking points in October

October has been a month of change, with high-profile staff announcements at the Bank of England, the Swedish Riksbank and, of course, the U.S. Fed. Here is a check list of these and other topics that have surfaced this month and are likely to remain of…

Missing ingredient in BOK

According to this article published on Wednesday 26 October, although the Bank of Korea's interest rate policy is supposed to be as powerful as the Fed's, few still believe that the BOK operates its monetary policy independently from the government.

Comment: Braced for a bumpy ride

The Bank of England, along with central banks in several other developed countries, has enjoyed fairly benign conditions in recent years. Inflation pressures have been relatively low, avoiding the need for the Bank to make the tough choice between output…

Ben Bernanke has a lot going for him to make it

According to this article published on Tuesday 25 October, Ben Bernanke will have a lot going for him if he becomes, as expected, the next chairman of the Federal Reserve. He is among the most knowledgeable economists in the world about monetary policy…

Comment: 'Ideas guy' takes the reins

The nomination of Ben Bernanke to be the fourteenth Federal Reserve chairman has been met in academic and policymaking circles with warm applause. Bernanke, quite simply, was the candidate the market wanted.

Comment: Bands or point targets?

Relatively little attention is paid to issues regarding optimal institutional arrangements for inflation-targeting central banks, as the big policy debates seem to revolve more around whether or not countries should adopt the framework in the first place…

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