Monetary policy
Canada's Wolf on housing sector
David Wolf, an adviser at the Bank of Canada, says housing is disproportionately important in the country
Optimal monetary policy with some pricing power
Boston Fed paper looks at optimal policy in an environment where firms can set some prices
Taylor-rule author blasts Bernanke’s argument
Economist John Taylor says Bernanke was wrong to argue that low interest rates were not a factor in the housing bubble that led to the financial crisis
Fed reiterates plans for February exit
Federal Open Market Committee and governors expect to exit most crisis-fighting facilities early next year; committee keeps “extended period” pledge
East Asia will take its cue from Fed: Indonesia deputy
Budi Mulya, the deputy governor of Bank Indonesia, says it is crucial the Fed err on the side of caution in withdrawing accommodative measures; East Asia-Pacific region will watch it closely
Cutting interest rates the best solution: ECB paper
A European Central Bank working paper argues that interest rate cuts and controlled inflation help adverse financial conditions, while simplistic interpretation of Taylor rule does not
Fed does not respond to oil price shocks: CEPR paper
CEPR paper argues against the standard view that Fed’s policy responses to oil-price-led inflation caused economic instability
Central banks should have control over credit
Two economists argue in support of a role for credit in central banks’ mandate, and analyse the claim that financial crises are “credit booms gone wrong”
America can learn from us: Uganda’s Tumusiime-Mutebile
Bank of Uganda’s governor says risk-based supervision saved the country’s banks; reinforces the importance of open-market principles for the economy
Unconventional monetary policy reviewed
Claudio Borio and Piti Disyatat set out a framework of definitions to help categorise and clarify the functions of various monetary policy tools, and assess central banks’ actions since the crisis
Reflections on liquidity crises: Borio
The BIS’s Claudio Borio discusses ten propositions on liquidity crises, including the importance of improving buffers and the need for principles on central bank liquidity provision
Fed behaviour matches optimal target rule
A discussion paper on the Fed and monetary policy rules argues that an optimal target rule, rather than the Taylor rule, best explains the central bank’s policy behaviour
Turkish credit conditions improving
Central Bank of Turkey’s policy minutes show strains in the country’s credit markets are easing
Fiscal stimulus crucial for recovery
Centre for Economic Policy Research (CEPR) compares the Great Depression with the global credit crisis
Central banking law in the crisis: Shirakawa
BoJ governor says that the crisis has highlighted why central banks need independence; outlines legal developments in central banking
Brazilian economy on the up, minutes show
Central Bank of Brazil’s policy meeting minutes also show inflation is under control
BoJ minutes reveal growing rift with government
Minutes of the Bank of Japan’s October policy meeting show senior minister questioning policy decisions and stance
The relationship between money, credit and policy
A new paper finds evidence that the relationship between money and credit changed after the second world war
Zero lower bound may have cost US $1.7 trillion
San Francisco Fed’s John Williams argues zero bound on interest rates has had negative effect and could continue to do so
Kenya cuts by 75 basis points
Central Bank of Kenya chops three-quarters of a point off benchmark rate
Israel makes surprise hike on inflation fears
Bank of Israel’s Fischer raises key rate to 1% from next month; cites a jump in inflation expectations even with rate hikes factored in
Hungary shaves by 50 bps as expected; widens rate corridor
National Bank of Hungary cuts key rate to 6.5% as indicated; widens rate corridor citing better market conditions
South African Reserve Bank - Monetary Policy Review
SARB report explains that downside risks to inflation from poor output and expenditure figures underpinned rate cuts between May and August
OECD hikes growth forecasts
Paris-based organisation raises its growth forecasts for next year and publishes 2011 expectations, citing the momentum of the recovery in non-members such as China