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Research

Paper highlights influence of Taylor rule

The rise in influence of the Taylor rule, which shows how monetary policy should adjust to ensure growth and inflation remain near target levels, played an important part in the shift towards a more transparent, more independent era of central banking,…

Stability not gradualism has influenced UK MPC

The relative paucity of rate changes at the Bank of England since the institution became independent in 1997 is down to the increased stability of inflation and output growth, rather than a rise in the degree of gradualism, research published by the Bank…

IMF growth forecasts fall on purchasing power data

The International Monetary Fund (IMF) has lowered its growth estimate for 2007 by half a percentage point after reviewing research published by the International Comparison Program, a global statistical initiative involving over 100 countries.

Central banks partly to blame for crunch

The creation of excessive global liquidity by key central banks was one of a number of phenomena that led to the current financial crisis, says Willem Buiter, a former member of the Bank of England's monetary policy committee, now an economics professor…

Global slowdown may hamper US deficit financing

It may be harder to continue financing United States current-account deficits on such favourable terms if the recent wave of financial globalisation were to subside, research published by the New York Federal Reserve finds.

Research shows dollarisation and rates link

Since the adoption of inflation targeting and a floating exchange rate in 1999, real interest rates in Brazil have fallen as levels of dollarisation in the economy have dropped, research published by the International Monetary Fund finds.

Pacific Island SWFs hampered by mismanagement

Little integration with budgets, institutional weaknesses and inadequate controls have hindered the performance of sovereign wealth funds run by the authorities in Pacific Island countries, research published by the International Monetary Fund finds.

Currency flexibility needed for China's success

China will need exchange rate flexibility and, eventually, convertibility with open capital markets if it is to carry on succeeding as a large and diverse economy, says Maurice Obstfeld, an academic based at the University of California, Berkeley.

Renminbi revaluation would help dampen inflation

An appreciation of the renminbi against the greenback should lead to the Chinese authorities having more control over inflation, but would have little effect on the size of the United States trade deficit, says Marvin Goodfriend, an academic based at…

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