Central Banking
Real-time activity index shows depth of recession
Philadelphia Fed paper constructs index of real-time macroeconomic information, showing that the recent recession was defined by its severity relative to its length
Singapore moots expanding deposit guarantees
Monetary Authority of Singapore proposes extending scope and limit of deposit protection as it nears exit from an emergency guarantee adopted at the height of the crisis
Bulgaria relaxes capital adequacy rules
Bulgarian National Bank announces adoption of further countercyclical capital measures, reducing risk weights on retail and real estate exposures by 25 and 15 percentage points
Shogo Ishii to head IMF’s Asia office
Current head Akira Ariyoshi to take up academic post in Hitotsubashi University
Emerging markets need a voice: Krueger
Ex-IMF first deputy managing director Anne Krueger writes that countries such as India and China must have a presence of the international stage reflecting their weight in the global economy
Taylor rule has not removed need for judgement: RBI’s Subbarao
Reserve Bank of India governor Duvvuri Subbarao says the celebrated monetary policy rule provides a policy basis, but central banks need to apply it with relativism
Income convergence and inflation in central and eastern Europe
Bank of Estonia paper finds that income levels and inflation are correlated in the long term, but not in the short-term, with the process of convergence appearing to be slow
ECB – Monetary developments in the euro area (January)
European Central Bank statistics show broad money in the eurozone grew modestly in January
ECB’s Stark rejects calls for higher inflation target
Senior European Central Bank official pans IMF chief economist’s suggestions of a higher inflation target
Fed is investigating Goldman, hedge funds: Bernanke
Federal Reserve chairman Ben Bernanke says the central bank is looking into cross-currency swaps carried out by Goldman Sachs alleged to have helped Greece hide the extent of its debt
Argentine court blocks debt repayment fund
Appeals court thwarts Argentine president Cristina Fernández’s decree by upholding injunction against the forced transfer of central bank reserves to bondholder repayment fund
FT Fed watcher to head NY Fed communications
Financial Times’s Krishna Guha to succeed Calvin Mitchell as executive vice president for communications
Brazil jacks reserve ratio up by 200 bps
Central Bank of Brazil lifts reserve requirement ratio back to pre-crisis level, move is expected to withdraw more than 70% of liquidity provided during crisis
Export recovery will lose speed: BoJ’s Yamaguchi
Bank of Japan deputy governor Hirohide Yamaguchi says pace of export and production recovery to slow, but economy will gain momentum in the summer
How the Taylor rule changed central banking for good
Kansas Fed paper shows that the rule had widespread influence and changed policymaking even when it was not adopted outright
Central Bank of Ireland – Developments in Private Sector Credit
Irish central bank’s note shows private sector credit continued to shrink, and lending both to banks and non-banks dropped in the final quarter of 2009
Monetary misperceptions in a New Keynesian model
Centre for Economic Policy Research paper finds that the difference between primary and revised monetary figures captures misperceptions, which are key
Discount hike was to discourage reliance on Fed: Bernanke
Federal Reserve chairman Ben Bernanke reiterates the central bank’s stance that its recent discount rate hike was in no way a policy tightening, flags term deposit facility
Ex-Bank Indonesia head accused over bailout
Inquiry into bailout of Century Bank raises questions into Bank Indonesia’s handling of regulation; allies of president round on former central bank governor and finance minister
South Africa’s Marcus strikes back at “misleading distortions”
South African Reserve Bank governor Gill Marcus rebuffs report that she had branded calls for nationalising the central bank “nuts”
PBoC deputy named IMF special adviser
Zhu Min to join the International Monetary Fund in late spring
Ex-Sarb’s Mboweni to chair AngloGold Ashanti
Former South African Reserve Bank governor Tito Mboweni appointed chairman of gold mining company
Former Hungary governor “prepared” to return to government
Ex-National Bank of Hungary chief Zsigmond Járai says he is ready to accept a post in new government if opposition wins upcoming election
King on QE: we’ve filled a hole
Bank of England governor says pumping £200 billion into economy averted “very serious contraction” in money supply; flags concerns over eurozone’s stuttering recovery