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Agenda set for derivatives industry

A meeting at the New York Federal Reserve on Wednesday of the major players in the over-the-counter derivatives market culminated in a four-point agenda for the industry.

Mexico may tap Fed, IMF credit lines

Felipe Calderon, Mexico's president, said on Tuesday that the country was eligible to take a $40 billion credit line with the International Monetary Fund (IMF) as speculation mounted that the Bank of Mexico would soon use its $30 billion arrangement with…

Fed's Stern: recession could end in mid-2009

In one of the most bullish assessments of the state of the US economy by an official of the Federal Reserve since the start of the crisis, Gary Stern, the long-serving president of the Federal Reserve Bank of Minneapolis, said that the recovery could…

AIG cited as case for shadow-bank rules

The American International Group (AIG) situation highlights the need for strong, effective consolidated supervision of all systemically-important financial firms, said Ben Bernanke, the chairman of the Federal Reserve.

A labour model for inflation dynamics

A model with sticky nominal wages and right-to-manage bargaining best captures the response of inflation to nominal labour shocks, a new paper from the Philadelphia Federal Reserve posits.

A new monetary policy for the Fed

Jane D'Arista, an economist, has proposed a new countercyclical method of monetary control to enhance the Federal Reserve's ability to respond to credit contractions and expansions, in a new paper published by the University of Massachusetts Amherst.

AIG cutting costs, Bernanke assures senator

Ben Bernanke, the chairman of the Federal Reserve, has moved to soothe Congressional anger over the bailout of American International Group (AIG), saying that the beleaguered insurer had been forced to adhere to strict cost-cutting measures, according to…

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