Growth
IMF: Fiscal health helps weather negative externalities
Fund study shows that fiscal austerity can weaken effects of negative demand shocks on growth in low income countries
Fed cannot bear full burden of job creation: Fisher, Plosser
Regional Federal Reserve presidents Richard Fisher and Charles Plosser say loosening monetary stance further will not cure unemployment ills; monetary policy no panacea for macroeconomic problems
BoJ expands fixed-rate fund supply on growth, yen fears
Bank of Japan unveils six-month term to existing fixed-rate funds operation; facility to expand by $238 billion on fears of weak US growth, yen strength
Bernanke dismisses higher inflation targets, unconvinced on conditional commitment
Federal Reserve chairman Ben Bernanke rejects higher inflation targets; says conditional rate commitment too risky, despite success in Canada
High public debt will choke long-term growth: ECB
European Central Bank paper finds debt to GDP ratio of 70% enough to drag growth down
RBI’s income plummets on low returns
Reserve Bank of India’s Annual Report shows income in past fiscal year dropped as rates of return fell worldwide; central bank expects temporarily weakened output path
Norway’s Gjedrem tells students merits of rules based system
Norges Bank governor Svein Gjedrem says experiment with centrally planned economy proved disastrous; says policy rules system remains best option
UK think tank forecasts 8% rates by 2012
Though now at record lows, Policy Exchange chief economist Andrew Lilico says interest rates in the United Kingdom may rise to 8% by 2012 to overcome double digit inflation
Rate round-up: Hungary, Israel hold on uncertainty
Continued uncertainty in global and domestic economy prompts Hungary, Israel to leave rates unchanged
Banks overestimate Basel III’s impact on growth: regulators
Basel body says hiking capital ratios by one percentage point will only cause 0.19% drop in potential GDP as lower rates will cushion the blow; industry bodies remain unconvinced
BoE: Agents’ summary of business conditions (June 2010)
Bank of England’s June summary of business conditions finds retailers fear government spending cuts
National Bank of the Republic of Belarus – Annual Report (2009)
National Bank of the Republic of Belarus’ 2009 Annual Report shows worsening terms of trade
Bank of Japan watching soaring yen closely
Japanese central bank says it is carefully monitoring strengthening currency and its implications for export market; plummeting confidence in the US recovery sparks worry
Bank leaps to defence of off-target inflation forecasts
Bank of England lifts inflation predictions on volatility from short-term shocks, mounting spirited defence of erroneous predictions to date; slightly lowers growth expectations
FOMC pledges to maintain scale of asset purchases
Federal Reserve fails to announce additional quantitative easing but pledges to keep size of purchases at current levels; calls for more easing spurred by weak jobs data
Commentators sharpen knives ahead of Bank’s forecasts
Leading media outlets criticise Bank of England’s forecasting methods ahead of Wednesday Inflation Report; former Bank economists say new model welcome but will not remedy rate-setters unfounded optimism, which underpins off-target predictions
St Louis Fed: Financial innovation important for growth
St Louis Federal Reserve study says improving best financial practices can boost economic performance
Turkey’s Yilmaz dismisses benefits of capital deepening
Central Bank of Turkey governor Durmuş Yılmaz says country should focus on increasing existing sources of production instead of increasing capital intensity
Dallas Fed: Oil shocks driven by supply and demand factors
Dallas Federal Reserve study links variations in oil prices and US growth patterns over past four decades to endogenous shocks
South Africa in fresh attempt to curb rand volatility
Ruling African National Congress will consider short-term capital inflows tax to curb rand volatility, currency’s strength; party questions merits of Sarb’s hard-won inflation targeting regime
China now world’s second-largest economy, says PBoC’s Yi
People’s Bank of China vice governor Yi Gang says China has overtaken Japan
Greece’s fiscal situation far worse than US: Atlanta Fed
Atlanta Federal Reserve study says Greece’s fiscal debts more worrisome than the United States’s
IMF: European debt measurements misleading policies
Fund study says European Union spending cuts neglect impact of policies on future
IMF: democracies outpace autocracies following commodity boom
Fund study shows following an international commodity boom, growth tends to increase in emerging market democracies, but decrease in autocracies