Monetary policy
Kocherlakota speaks out against Fed decision
Minneapolis Fed president Narayana Kocherlakota says rising inflation and lower unemployment in economy did not warrant change in Fed language; says measure constitutes monetary easing
Macroprudential measures complement monetary policy: IMF paper
An IMF study says macroprudential policy can work in unison with monetary policy but it is not a direct substitute
Divergence in views emerges between Bank of Israel’s narrow forum
Bank of Israel says governor decided to hold monetary policy stance despite recommendation from one member of narrow forum to raise rates
Central bank credibility remained intact during crisis: Netherlands Bank paper
Netherlands Bank study says non-standard economic policies did not have any adverse effects on inflation expectations
Ex-MPC members debate QE options
Bank of England former Monetary Policy Committee members discuss scope for further asset purchases in the UK
Bank of Israel – Monetary Policy Report (August 2011)
Bank of Israel Monetary Policy Report says inflationary environment motivated faster pace of increase in the interest rates
Azerbaijan releases new strategic plan
Document sets out response to changing economic climate; highlights nine targets for supporting macroeconomic stability and growth in the country
Sri Lanka ponders 'fit and proper' tests for non-bank lenders
Bill is pending that would introduce ‘fit and proper’ tests for senior executives of non-bank lenders
Exogenous financial shocks should factor into monetary policy: Dallas Fed paper
Dallas Federal Reserve study says exogenous financial shocks should be incorporated into monetary policy decisions
BoJ minutes highlight concerns over shortage in nuclear energy
Bank of Japan minutes warn delay in resumption of nuclear energy plants may require more 'conservative' growth forecast
Kenya reverses rate decision
Central Bank of Kenya reverses earlier rate increase on overnight discount rate but imposes restrictions on its discount window; analysts say measures amount to tightening in monetary policy
Germany and China heighten cooperation
People’s Bank of China and Deutsche Bundesbank meet in Frankfurt to discuss financial stability and trade partnership; China stresses confidence in euro area
St Louis Fed paper on US monetary policy and global output gaps
St Louis Federal Reserve study says there is not sufficient empirical evidence to suggest US monetary policy should focus on global output gaps
Iceland paper reviews monetary policy in turbulent times
Central Bank of Iceland study shows banks’ price setting behaviour and inflation expectations have been negatively impacted by banking crisis
BIS’s Caruana urges completion of regulatory reform agenda
Bank for International Settlements general manager Jaime Caruana highlights a number of challenges facing national authorities in implementing critical reforms
BIS’s Caruana calls on central banks to lengthen policy horizon
Bank for International Settlements general manager Jaime Caruana says monetary policy strategy should be adjusted to contain build-up of financial imbalances
Standard monetary policy rules don’t apply in liquidity traps: Dallas Fed
Dallas Federal Reserve study shows monetary policy should be complemented with fiscal policy in order to shift aggregate demand out of a liquidity trap
Weber says heterogeneity in euro area not an issue
Former Bundesbank president Axel Weber says heterogeneity of economies not an issue in currency in St Louis Federal reserve paper
"Hawkish" Riksbank raises repo rate
Riksbank raises repo rate by 25 basis points amid growing inflationary pressures in Sweden; central bank does not alter future repo path to analysts' surprise
Dissenter calls for rate hike: Iceland minutes
Central Bank of Iceland Monetary Policy Committee minutes show one member called for a 25-basis point rate hike
QE2 is classic monetary policy: Fed’s Bullard
St Louis Federal Reserve president James Bullard says effects of quantitative easing too similar to interest rate loosening
Bank of Italy paper on impact of conservative central banking
Bank of Italy study identifies three strategic channels through which central bank conservatism influences wages
Inflation targeting reduced severity of crisis in Turkey: Fund paper
Fund study shows adoption of inflation targeting and flexible exchange rate regime reduced impact of financial crisis in Turkey
BIS call for UK rate hike ‘nonsense’, says Bank’s Posen
Bank of England external Monetary Policy Committee member Adam Posen describes Bank for International Settlement’s argument for increase in Bank rate as ‘nonsense’