Central Banking
Kenneth Rogoff - Escape from global deflation
In an article published in the Nihon Keizai Shimbun, Kenneth Rogoff of the IMF said the odds of global deflation are not high, but if it were to set in, the world's central banks have the tools needed to address the problem. The path out, however, is…
Exits from pegged regimes: An empirical analysis
The IMF Working Paper 'Exits From Pegged Regimes: An Empirical Analysis' analyses the determinants of exits from pegged regimes, where exits involve shifts to more or less flexible regimes, or adjustments within the existing regime. The results confirm…
Dollarization of the banking system: Good or bad?
The IMF Working Paper 'Dollarization of the Banking System: Good or Bad?' assesses the benefits and risks associated with dollarization of the banking system. The authors find that the credibility of macroeconomic policy and the quality of institutions…
'Wrong, Mister' - Greenspan under fire at Congress
Transcript of Rep. Sanders' question-and-answer period with Federal Reserve Chairman Alan Greenspan during the Financial Services hearing on 15 July. Congressman Sanders said in his statement "I think you just don't know what's going on in the real world…
Atlanta Fed's Guynn sees economic momentum growing
Atlanta Fed President Jack Guynn said on Thursday 31 July that business investment spending and job growth were key uncertainties that will have a strong influence on business investment spending and job growth, according to Reuters. Guynn cited a number…
Trichet urges Chirac to cut public spending
Bank of France governor Jean-Claude Trichet has called on President Jacques Chirac to reduce spending and introduce reforms to lift growth, according to the Financial Times. In a letter to the President, accompanying the Bank's annual report, Trichet…
Sweden's Persson shifts euro-debate to politics
Swedish prime minister Goran Persson urged Swedes to vote yes to the euro in the 14 September referendum, according to EUObserver. Speaking on Sunday 3 August he said "The economic arguments are important, but the political arguments are decisive for me…
Global settlement bank CLS to recognise Korean won
The CLS Bank has said it recognises the Korean won as an eligible currency for the bank's settlement process in principle, according to The Korea Herald. Bank of Korea officials noted that the inclusion of the local currency as a CLS currency would free…
Brazil may cut central bank reserve requirement
The Central Bank of Brazil may lower its reserve requirement for commercial banks by as much as 20 percent, Bloomberg reports President Lula's chief of staff as saying.
Bangladeshis complain of 'smelly' banknotes
The people of Bangladesh are becoming increasingly unhappy with their banknotes, according to a report by Reuters. Complaints that the paper money can "smell awfully bad" has seen fish-market customers refusing to take notes in their change, insisting…
Bank Indonesia and government resolve disagreement
Bank Indonesia has resolved a long-standing dispute with its government, according to Dow Jones. The problem concerned the aftermath of the Asian financial crisis over how to account for the emergency funding. The resolution should see the government's…
'Worst is over for Germany' says Schroeder
German Chancellor Gerhard Schroeder said that key economic figures increasingly point to an economic upswing, according to AFP "These encouraging signs give rise to confidence that, particularly next year, German economic growth will strongly increase…
China should not rush to float its currency
Alan Greenspan's recent comment that China should float its currency and dump the dollar peg is not sound advice, this article in the Financial Times says. The abandonment of the dollar peg would open a Pandora's box in China and could leave the world…
Chicago Fed Economic Perspectives 3rd Quarter 2003
The Federal Reserve Bank of Chicago has published its regular quarterly journal, Economic Perspectives, for the Third Quarter 2003. The latest edition includes articles titled 'Banking relationships during financial distress:The evidence from Japan' and …
European Court of Justice judgement on OLAF case
Judgement of the European Court of Justice on OLAF case, 31 July. Press release from the ECB on the European Court of Justice's judgement on the Commission of the European Communities v. the European Central Bank.
ESCB-CESR Clearing and Settlement Standards
ESCB-CESR Standards for Securities Clearing and Settlement Systems in the European Union: Consultation announcement, consultative report and scope of application, 1 August 2003. The ESCB and CESR documents entitled "Standards for securities clearing and…
Extracting rate expectations, Japan's bond prices
Working Paper from the Bank of Japan's Financial Markets Department entitled "Extracting Market Expectations on the Duration of the Zero Interest Rate Policy from Japan's Bond Prices". The paper aims to extract the expectations of market participants on…
Election delay of BNB governor 'won't harm banks'
The postponement of the election of a new governor to the Bulgarian National Bank won't harm Bulgaria's banking sector, Finance Minister Milen Velchev has said according to Novinite.
Suriname changing name of its currency
Suriname is changing the name of its currency to the dollar from January when new banknotes will be printed, according to News-Journal. The exchange rate to the dollar will also be changed significantly.
ECB accepts it does not need own anti-fraud scheme
The ECB acknowledged on Thursday 31 July that it could not run its own fraud investigations after a ruling on 10 July. The European Court of Justice ruled that the ECB's independence did not mean that it could run its fraud investigations as this was…
NBP governor predicts 5% economic growth in 2004
Governor Leszek Balcerowicz of the National Bank of Poland said on Thursday 31 July that reforms of public expenditure were needed to reduce Poland's budget deficit, according to the Warsaw Business Journal.
Trichet nomination for president approved by ECB
The European Central Bank's Governing Council endorsed Jean-Claude Trichet's candidacy to be the next president of the ECB at its last meeting before the summer break on Thursday, EurActiv reports.
Madagascar launches new currency
The Madagascan franc will be replaced by the launch of a new currency, according to a report by AFP The reference to the franc "lost its raison d'etre since the arrival of the euro", a central bank official said.
Frankfurt reveals reforms to market operations
Under the new calendar, ECB maintenance periods will always start on the settlement day of the main refinancing operation that follows a Governing Council meeting. The bank also intends to align reserve maintenance periods with its governing council…