Central Banking
Sovereign wealth fund round-up
The creation of a much-mooted code of conduct for sovereign wealth funds edged closer this week after the European Commission submitted its ideas to the region's finance ministers for review in mid-March.
BIS's Knight wants procyclicality issue addressed
A strengthening of the so-called "macroprudential approach" to financial regulation is needed to address problems of excessive procyclicality, said Malcolm Knight, the general manager of the Bank for International Settlements.
Czech's Tomsik on short-term outlook
The Czech National Bank has forecast GDP growth to slow during this year but to pick up in the first quarter of 2009.
EU building and consumer sectors most sensitive
The eurozone's construction and consumer sectors are typically the most sensitive to shocks in GDP and inflation variables, states a new European Central Bank paper.
Iceland a step ahead on liquidity
Iceland's approach to liquidity management is much more developed than in other countries, said Ingimundur Fridriksson, a governor at the central bank.
EU should be "driving force" in SWF regulation
The EU should be at the forefront of the effort to supervise sovereign wealth fund investments, the European Commission has said.
UAE governor rejects Greenspan advice
The United Arab Emirates will keep the dirham pegged to the dollar despite calls from former Fed chairman Alan Greenspan to float its currency.
Political scrap over governor may embarrass Japan
A spat between Japan's two main political parties is threatening to undermine the central bank's credibility by leaving it without an official governor when Toshihiko Fukui's term expires in the middle of next month.
Fed exacerbating stagflation risk: Meltzer
The Federal Reserve's current policies mark a return to the dark days of the 1970s and carry the same threats, says Allan Meltzer, a professor at Carnegie Mellon University.
SWFs to cover bank shortfall for private equity?
Not content with buying up sizable stakes in the big investment banks, sovereign wealth funds could now take their business as well.
Norway posts $3.4 billion loss
The Bank of Norway was NKr17.6 billion ($3.4 billion) in the red last year, accounts published on Thursday 28 February reveal.
Stability requires public-private coordination
The close cooperation of policymakers and market participants is essential for achieving sustainable growth and preserving stability, said Lucas Papademos, the vice president of the European Central Bank.
Policy shifts improved inflation outlook
The decline in the level, persistence and volatility of inflation across industrialised countries since the mid-1980s is due in part to improvements in monetary policy, finds a Bank of England working paper.
A case for stronger regulation on liquidity
Securitisation's enhancement of and reliance on liquidity, as revealed by the recent bout of turmoil, indicates the need for new rules on liquidity, the Banque de France's latest stability review finds.
Productivity leap needs more than just IT
Improvements in communication and information technology must be coupled with organisational changes and sound human resource policies if they are to boost productivity, research published by the Bank of Canada finds.
Zhou set to stay at People's Bank?
Zhou Xiaochuan, the governor of the People's Bank of China, could remain governor of the central bank according to local media reports.
Bernanke changes tack, cautions on inflation
Ben Bernanke, the chairman of the Federal Reserve, has said that the inflation picture in the US has worsened since the Federal Open Market Committee (FOMC) last met.
Markets underestimate ECB's inflation fears
Bets on interest rate decisions fail to take into account the seriousness of the inflation situation in the eurozone, said Axel Weber, the president of the Bundesbank who also sits on the European Central Bank's (ECB) governing council.
Poland raises rates to 5.5% in surprise move
The National Bank of Poland has voted to raise rates unexpectedly by a quarter point.
Further Fed cuts likely on Kohn comments
Donald Kohn, the vice chairman of the Federal Reserve, has hinted that more rate cuts are needed in order to insure against an economic calamity.
Controlling inflation stabilises growth
Monetary policy's dual objectives - stabilising inflation and stabilising economic activity - complement rather than contradict one another, said Frederic Mishkin, a governor of the Federal Reserve.
BoE's Lomax notes dramatic shift in outlook
The persisting financial turmoil and the build up in global inflationary pressures have led to a dramatic change in the outlook for 2008 and beyond, Rachel Lomax, a deputy governor at the Bank of England, said.
Turkey reveals rationale for latest cut
The Central Bank of Turkey lowered rates for the sixth straight month in February because monetary policy still supported disinflation, the minutes of the meeting show.