Inflation

Deflation may be the real danger for central banks

ARTICLE - Deflation or inflation - could the central bank guns be facing in the wrong direction? This article suggests that rather than worry about inflation, the major central banks could instead be preparing for a battle against the opposite, deflation.

Diverse bunch

ARTICLE - Another inflation report, another smooth performance from Mervyn King, the Bank of England's monetary policy supremo. Despite the best efforts of his interrogators, he refused to let the words "boom" or "bubble" pass his lips when talking about…

Bank of England Inflation Report, November 2002

REPORT - The Bank of England published its quarterly Inflation Report for November 2002 on Wednesday. In the report the bank recognises the fragility of the world economy and continued stock market volatility. The report reveals that inflation is…

A new policy divide across the Atlantic

ARTICLE - Their analysis was so similar: the US Federal Reserve said on Tuesday that "inflation and inflationary expectations remain well contained"; Wim Duisenberg, the European Central Bank's president, concurred yesterday when he talked about "reduced…

Central Bank of Brazil Working Paper

RESEARCH - The paper 'Inflation Targeting in Brazil: Lessons and Challenges' by Andre Minella, Paulo Springer de Freitas, Ilan Goldfajn and Marcelo Kfoury Muinhos assesses the first three years of the inflation-targeting regime in Brazil adopted in July…

Bank of Canada Working Paper

RESEARCH - Bank of Canada Working Paper by David Andolfatto, Scott Hendry, and Kevin Moran, October 2002. Various measures indicate that inflation expectations evolve sluggishly relative to actual inflation. In addition, they often fail conventional…

IMF upbeat on Ukrainian monetary policy

UKRAINE - The International Monetary Fund has approved the monetary policy of the National Bank of Ukraine because it enabled Ukraine to maintain stable prices and keep the low inflation rate, the head of the IMF mission in Ukraine, Emanuel van der…

Minutes from the Sveriges Riksbank Board meeting

MINUTES - Minutes of the Sveriges Riksbank Executive Board meeting on 16 October, published 30 October. Although the Executive Board voted to maintain the repo rate at 4.25 per cent the minutes reveal Deputy Governor Kristina Persson entered a…

Yugoslav c banker expects 15% inflation this year

YUGOSLAVIA - Following the rise in petrol prices, the 2002 inflation will not exceed 15 per cent and will amount to about nine per cent in 2003, which is why Yugoslav National Bank (NBJ) will lower the obligatory bank reserves rate, Yugoslav National…

Norges Bank's Inflation Report 3/2002

REPORT - Norway's central bank published its third and final Inflation Report for 2002 on 30 October. The Inflation Report discusses developments in the Norwegian economy and other factors that influence the inflation outlook. Developments in the…

Bank of Canada Monetary Policy Report

REPORT - Bank of Canada released its October 2002 Monetary Policy Report, 23 October. In the report the Bank of Canada said the Canadian economy has undergone a strong expansion with more rapid growth than all other G-7 countries over the past year…

Manuel calls for SARB inflation target review

SOUTH AFRICA - Finance Minister Trevor Manuel has suggested politicians and other interested parties hold a discussion on inflation targeting once Statistics South Africa has completed its study on the country's target measure, CPIX.

BOK urged to focus on long-term inflation target

KOREA - The central bank should set its inflation target on a medium- or long-term basis rather than on an annual basis to maintain price stability more effectively, economic experts said at a seminar on inflation held at the Bank of Korea (BOK) in…

Canada's c bank warns of spike in inflation

CANADA - The Bank of Canada said Wednesday economic growth will be lower than expected in the short term but inflation could still double the bank's target by year-end, as Canada continues to be pulled in opposite directions by uncertain global markets…

Banks can park funds in infrastructure projects

ARTICLE - If the brief for a central bank is to guarantee liquidity in a milieu of low inflation and high forex reserves, the RBI can be said to have done more than its bit. On the supply side, RBI has been able to manage a dipping interest regime over…

Hayami pans adoption of inflation target for Japan

JAPAN - Bank of Japan Gov. Masaru Hayami on Thursday rejected the notion of adopting an inflation target as a means of helping to raise prices and fight deflation. "There is no data to support the procedure and the way to achieve it," Hayami told a…