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Central Banking

Real effective exchange rates in WAEMU

A new paper from the IMF investigates the long-run equilibrium paths of the real effective exchange rates (REERs) of countries in the West African Economic and Monetary Union (WAEMU).

Calls for New Zealand to drop inflation target

The New Zealand stock exchange operator, New Zealand Exchange (NZX), has called for on the country's central bank to abandon its strict inflation target. Michael Cullen, the finance minister, called the suggestion "very interesting and very well…

Central Bank of Nigeria 2006 annual report

The Central Bank of Nigeria notes in its annual report for 2006 that macroeconomic stability was achieved through non-accommodating monetary policy and prudent fiscal policies by the federal government.

Trichet signals September hike

The European Central Bank (ECB) today left interest rates unchanged at 4%. In a surprise press conference after the announcement, Jean-Claude Trichet, the president of the central bank, dropped a strong hint that rates will rise at the next meeting in…

Bank of England leaves rates unchanged

The Bank of England today announced that it would leave its benchmark interest rate at 5.75%. The decision to hold rates steady was widely expected, though most economists expect rates to rise to 6% before the end of this year.

Bernanke's prudent investments

Ben Bernanke, the chairman of the Federal Reserve, is a cautious investor, which a portfolio of financial assets consisting of mostly US Treasury securities, mutual funds and annuities.

Chinese capital controls

This working paper by the Bank for International Settlements finds that China's capital controls have allowed the authorities to retain some degree of short-term monetary autonomy, despite the fixed exchange rate.

Randall Kroszner testimony

In testimony during his confirmation hearing, Randall Kroszner, a member of the Board of Governors of the Federal Reserve, said the central bank has achieved much success in reducing and stabilising inflation and inflation expectations over the quarter…

Explaining inflation differentials

This working paper by the International Monetary Fund suggests that some central banks may aim at comparatively high inflation rates mainly to make up for, and to perhaps exploit, lagging internal and external liberalisation in their economies.

Italian government eyes reserves for debt payment

The Italian government is proposing to use part of the central bank's gold and currency reserves to pay down national debt, which is currently at 107% of the country's gross national product. The country's parliament has approved a resolution calls for…

Bank of Japan plans gradual share sale

The Bank of Japan is considering ways to limit the market impact of its move to start selling shares in the country's commercial banks, bought between November 2002 and September 2004, by October this year.

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