Central Banking
EXCLUSIVE: We must accept central banks’ limitations, says Fed’s Plosser
Philadelphia Federal Reserve president warns mistaken view of central banks as omnipotent risks damaging their credibility
Posen breaks with Bank line on inflation
Bank of England’s Adam Posen believes the impact of consistently above-target inflation on expectations has led to high inflation; counters belief that price pressures can be attributed to temporary shocks
Volcker unhappy with watered down rule: reports
Head of presidential economic advisory board Paul Volcker said to be dissatisfied with cap, rather than ban, on banks’ hedge fund investments; lawmakers forced to scrap $19 billion bank levy
Canada names Goldman banker as governor’s adviser
Goldman Sachs’ Canadian chief executive officer appointed special adviser to the governor
Boston Fed on expectations, output and inflation
Research from Boston Federal Reserve shows low marginal cost presses down on inflation even when central bank’s explicit inflation target is clearly communicated and understood
Bank’s Fisher on why inflation remains high
Bank of England’s executive director for markets says temporary shocks and lack of downward pressure from economic slack have left inflation above 2% target
National Bank of Slovakia – Annual Report (2009)
Slovakian central bank’s annual report details benefits of entering currency union and documents smooth transition into new monetary policy and payments systems
Monetary policy analysis and forecasting in the G20
Paper published by the IMF develops model featuring extensive linkages between real and financial sectors
Second UK FSA managing director quits
British regulator announces the second resignation of a top-level official within the month; head of banking supervision Jon Pain says no role for him in new supervisory structure
EU faces tough call on sovereign scenarios for stress tests
European Union officials split on whether to run sovereign debt scenarios on stress tests; plans afoot to extend number of banks tested
Canada’s Carney named CGFS chair
Bank of Canada governor Mark Carney to step into Federal Reserve vice-chairman Donald Kohn’s shoes and head Basel-based Committee on the Global Financial System; follows Kohn’s retirement
Fed’s Warsh: market panic a signpost, not source of global economic woes
Market volatility merely a signal of how far we are away from the new normal; warns against expecting monetary and fiscal policy to do too much
Czech rate-setter Tomšik promoted to vice governor
Czech National Bank chief executive director Vladimír Tomšik named second vice governor; economist Kamil Janáček gets Tomšik’s vacated director role, completing rate-setting board
Interview: Gill Marcus
The governor of the South African Reserve Bank tells CentralBanking.com why reforms can’t be rushed and discusses the role of central banks within society
IMF: reserve managers’ ‘procyclical’ strategies exacerbated crisis
IMF says behaviour of reserve managers compounded pressures on financial stability; highlights potential conflict between investment strategies and stability mandates
Relationship between government and markets must change: Padoa-Schioppa
Former executive board member at the European Central Bank Tommaso Padoa-Schioppa says successful exit from the crisis will require a shift in the market-government nexus
EXCLUSIVE: Finger-pointing masks officials’ failures, says Sarb’s Marcus
South African Reserve Bank governor Gill Marcus says knee-jerk reforms ignore failure of policymakers to raise standards before crisis; sober, measured approach to reform only credible way forward
Money and liquidity in financial markets
Connection between interbank market for liquidity and broader financial markets exists
Caruana’s three policy challenges
Bank for International Settlements’ general manager outlines the key problems with which policymakers must grapple
BIS makes record profit
Bank for International Settlements records net profit of $2.9 trillion
BIS sceptical on reserves role for SDR
Trying to create global currency from accounting unit would not solve problems highlighted by the crisis
UK officials must consider cultural factors in regulatory overhaul
Navigating the transition to Britain’s new regulatory regime is fraught with cultural challenges, writes Michael Foot
Hawkish BIS warns on dangers of ultra-low rates
Bank for International Settlements says degree of slack likely to be smaller than suggested by output gap models
BIS fearful over fiscal crunch
Bank for International Settlements warns advanced economies that rising debt levels risk hindering long-term performance