Inflation
Sweden's Srejber on saving and inflation
In a speech on 'Saving and inflation' given on 19 November, Eva Srejber of the Sveriges Riksbank discusses Sweden's stabilisation policy framework and its development, mainly over the past 30 years, but also the potential challenges posed to the current…
Letter to Mervyn King from the UK Chancellor
Letter sent to the Governor of the Bank of England, Mervyn King, on the remit for the Monetary Policy Committee and the new inflation target, 10 December. There is also an annex on the new inflation target and the monetary policy framework.
Fed minutes suggest low rates until 2005
The Federal Reserve's latest FOMC minutes released on Thursday 11 December, reinforced their regular statement that interest rates could remain low for a "considerable period" saying that they should not raise interest rates until they saw concrete signs…
Growth down inflation up, predicts ECB
The European Central Bank's December monthly report released on Thursday 11 December increased its inflation forecasts for 2004 to a range of between 1.3 - 2.3 per cent for the euro area, reports EUpolitix, a figure revised significantly upwards from the…
RBA's Macfarlane on inflation targeting
In his Opening Statement to House of Representatives Standing Committee on Economics, Finance and Public Administration given on 8 December I.J. Macfarlane of the Reserve Bank of Australia said he wanted to assure the Committee that the bank remains…
Fed's Parry says US rates appropriate
The chances of inflation becoming a problem in the US economy are low, San Francisco Fed President and CEO Robert Parry has said, according to an AAP report. Speaking in Sydney via satellite, he commented "In the current low-inflation environment, upside…
Fed's Kohn on inflation targeting
In a speech to the St Louis Fed Inflation Targeting: Prospects and Problems Conference given on 17 October, Donald Kohn of the Federal Reserve said he believes that those who propose changes from a good system have a high burden of proof. The marginal…
No sign of U.S. inflation pressure-Fed's Santomero
There is some distance between the current level of the US economy and its potential, Anthony Santomero told the Philadelphia Estate Planning Council on Tuesday 18 November, according to Reuters. The Philadelphia Fed President also said a counter…
BOC's Longworth on Inflation Targeting
In a speech 'Economic Literacy, Inflation Targeting, and Medium-Term Planning' given on 13 November, David Longworth of the Bank of Canada discusses the relationship between better economic education and a stronger economy and how an understanding of…
Sports talk, central bank style
Mervyn King is a well known supporter of English premier league football team Aston Villa. But the Bank of England Governor doesn't confine his support to the stadium. Last weeks Inflation Report presentation continued King's regular habit of making…
Russian central bank holds rigid ruble policy
Oleg Vyugin, first deputy chairman of the Russian central bank, said on Monday 17 November, "So far the Central Bank is not ready to use foreign exchange policy to a full extent to meet inflation target", according to Reuters. His comments followed calls…
RBZ calls for concerted fight against inflation
Zimbabwe's Reserve Bank called for a concerted fight against inflation last Thursday, 13 November, according to Associated Press. In its latest weekly economic highlights it said "Given the vagaries of high inflation in the economy, the need for…
SARB's inflation targeting made simpler
Changes have been made to the South African Reserve Bank's inflation target making the central bank's task easier, Governor of the SARB, Tito Mboweni said, reports Finance 24. In future it will target the year on year CPIX rate on a continuous basis,…
Folly in economics
Where does the hyperinflation fit in the rational world of economics? Martin Paldam finds the answers in Peter Bernholz's study of monetary abuse.
Bank of England Inflation Report, November 2003
The Bank of England published its quarterly Inflation Report for November 2003 on Wednesday 12 November. In the report the Bank forecast that growth in the UK would pick up to just under 3 per cent next year, and would be "marginally above trend" over…
Cleveland's Low-Inflation Economies Conference
The Federal Reserve Bank of Cleveland's Central Bank Institute is holding a conference and workshop titled "Low-Inflation Economies" from 19-21 November. The agenda includes papers titled "The Efficiency of Inflation Targeting" and "Monetary Policy…
EU inflation stays above ECB ceiling
According to provisional figures for eurozone inflation, released on Friday 31 October by Eurostat, the rate remained above the ECB's 2 per cent ceiling in October at 2.1 per cent, the Financial Times reports.
Sveriges Riksbank Inflation Report, No.3, 2003
Sweden's central bank, the Sveriges Riksbank, has published its Third Inflation Report for 2003. All in all, the Riksbank's assessment is that there is a risk that international economic activity will lead to lower inflation than in the main scenario…
Bank of Canada sees lower inflation
The Bank of Canada said on Wednesday 22 October that Canadians can expect lower inflation and increased economic growth next year, according to CBC News. The bank said in its latest monetary policy report that growth is expected to average a bit over 3…
Issing on Inflation targeting: prospects, problems
In a panel discussion at the conference "Inflation targeting: prospects and problems" on 17 October Otmar Issing of the ECB said that the differences in the practices of central banks oriented to price stability are in fact relatively limited. "I believe…
Fed's Bernanke wants public inflation objective
Fed governor Ben Bernanke told the St Louis Fed's inflation targeting conference on Friday 17 October that in the current climate of low inflation, it was important to keep the public informed about the Fed's long-run intentions, according to Reuters…
Inflation target could insulate Fed, Poole says
St. Louis Fed President William Poole said on Thursday 16 October that the Federal Reserve should adopt a target for an acceptable level of inflation in part to insulate itself from political pressures. He was speaking at the start of a two-day…
Is inflation targeting yesterday's success story?
The problem now for the Bank of England, this article in The Independent suggests, is that the achievement of low and stable inflation may have become a little too easy. Inflation targeting may work very well in puncturing a bubble of inflationary…
Improving monetary policy with inflation targets
In the Bank of Canada Working Paper "A Simple Test of Simple Rules: Can They Improve How Monetary Policy is Implemented with Inflation Targets?" the authors evaluate whether an assortment of simple rules could improve how the Bank of Canada implements…