Central Banking
IMF research finds inflation targeting can dampen risk premiums
Working paper suggests inflation targeting reduces a country’s risk premium, although this effect is stronger for emerging markets and where inflation targeting is successful in stabilising prices
Bank of Finland researchers examine role of liquidity creation in bank failures
Experience of Russia from 2000–07 suggests early identification of excessive liquidity creators can 'mitigate systemic distress'
Macro-prudential policy can prevent euro area imbalances, says Polish paper
National Bank of Poland study finds macro-prudential instruments can prevent periphery and core imbalances emerging in the euro area, but only if applied regionally
IMF predicts chequered growth performances in 2013
Updated World Economic Outlook forecasts wide disparities between countries’ growth performances in the next year; overall estimates revised down since October
Central Bank of Colombia faces presidential call to cut rates
Colombian central bank under pressure from lawmakers and bankers to lower interest rates as growth falters and inflation dips below target
Draghi optimistic as ‘darkest clouds’ in euro area subside
ECB president Mario Draghi praises the euro area’s achievements in 2012, and urges countries to be unrelenting in their pursuit of reform
UAE central bank launches lending cap consultation
United Arab Emirates central bank responds to finance community's concerns by sending a questionnaire to canvas opinion on home loans caps
Bank of England unwavering in support for inflation target
MPC members hold interest rate and asset purchases to keep inflation on course to reach 2% in medium term; King condemns replacing price stability with economic growth target
BoJ says onus for recovery is now back with the government
Bank of Japan says monetary easing has ‘thoroughly permeated' the financial system; shifts onus back onto the government to tackle structural problems that are holding back growth
ECB working paper posits improved volatility measure
Paper proposes new measure of volatility that provides information on whole market rather than single maturities; authors say results are simpler and more robust than existing models
IMF paper considers macroprudential needs of resource-rich countries
Study considers Mongolia’s commodity boom, finding that risks arise from loose fiscal policy, increasing credit availability and a high risk appetite
Bank of Spain charts economy’s downward acceleration
Data for fourth quarter show economy continuing to spiral downward, with contractions in growth and demand gaining pace
Mauritian governor demands faster financial market expansion
Rundheersing Bheenick disappointed by slow bond market development; says central bank and others must increase efforts
Mervyn King makes final ‘regional' speech as BoE governor
King provides diagnosis, prescription and prognosis for the UK economy, and expresses fears over currency wars
Bundesbank president staunchly defends independence
Jens Weidmann speaks out against the increasing politicisation and expansion of central bank mandates
Nigerian central bank tells government to act on oil
Monetary Policy Committee cautions government against ‘complacency’ in tax revenue collection and says swift action is needed to support the struggling oil industry
Gold is no inflation hedge, says RBI deputy
Kamalesh Chandra Chakrabarty disputes status of gold as a safe asset or hedge against inflation, arguing that as the gold price increases, so do risks
Belgian paper finds Fed policy influenced by Taylor rule
Working paper presents evidence that Federal Reserve policy-makers are influenced by the Taylor rule when making monetary policy decisions
Fears over BoJ independence as central bank bows to government
Commentators express concerns over the Bank of Japan’s independence as the central bank introduces 2% inflation target and open-ended asset purchases
Irish deputy lays out arguments for banking union and SSM
Gerlach says while monetary policy and bank supervisory bodies should be separate, siting them together can bring benefits
ECB's Benoit Cœuré calls for sweeping structural reform of eurozone economies
Cœuré says monetary policy 'no substitute' for structural shifts in the economy, in order to maintain Europe's social contract
Thai governor wary of prolonged easing
Prasarn Trairatvorakul says Bank of Thailand must be aware of the risks continued monetary accommodation poses to financial stability; also targets greater payments efficiency in 2013
BoE's Haldane says UK could redefine global banking rules
Andrew Haldane says UK is in a position to ‘lead with the front foot' on fixing the shortcomings of Basel III, tightening remuneration policies and removing barriers to bank account switching
Iran parliament votes to investigate central bank
Iranian central bank governor reportedly dismissed by Supreme Court over illegal withdrawals from the banking system; investigation to look into conduct in forex market and 'other issues'