Monetary policy
Fund’s DSK on meshing monetary and regulatory tools
Policymakers are looking to academia to help see how macroprudential policy might affect central banks’ independence, IMF managing director Dominique Strauss-Kahn says
Tokyo nominates ex-IMF economist to BoJ policy board
Japanese government puts forth academic and ex-IMF economist Sayuri Shirai for Bank of Japan policy board, according to wire reports
Goldman economist to replace Sentance on Bank’s MPC
Chancellor of the exchequer George Osborne names Goldman Sachs’ Ben Broadbent as new member of Bank of England’s Monetary Policy Committee
Hungary names two external members to MPC
Hungarian parliament nominates two economists as external members to National Bank of Hungary rate-setting committee
Central bank wage cap backfires on Budapest: reports
Hungarian government could be pushed to amend controversial central bank salary cap as problems mount in finding suitable external rate-setters
UK lawmakers launch inquiry into BoE’s accountability
Influential parliamentary committee calls for views on the impact of regulatory change on Bank of England; changes will see Bank’s ambit expanded
Bank’s Sentance lists reasons for rate hike
Bank of England external Monetary Policy Committee member Andrew Sentance stresses importance of gradual rise in interest rates
King warns of delay in switch to new regulatory regime
Bank of England governor Mervyn King says correct implementation of regulatory reforms takes precedence over achieving deadlines
Bank won’t hike rates as gesture to market: King
Bank of England governor Mervyn King says use of interest rate to signal Bank’s intention to curb inflation would be self-defeating
Commentators split on Bank justification for high inflation
CentralBanking.com web panellists divided on whether Bank of England is acting within remit in accommodating persistently above target price pressures
BoE forecasts at odds with public view: BIS paper
Bank for International Settlements study finds substantial disagreement among UK consumers and Bank of England over inflation forecasts
Asset purchases only in emergencies: Bank’s Bean
Bank of England deputy governor Charles Bean says central bank should rely on short-term interest rates as main policy instrument and asset purchases only in emergencies
Riksbank paper on new DSGE algorithm
Riksbank study documents new forecasting algorithm for monetary policy model
RBNZ triggers contingency plans as earthquake strikes
Reserve Bank of New Zealand says it is collaborating with private sector to provide cash to earthquake-hit areas
Choice of payment method affects inflation: Bank of Canada paper:
Bank of Canada study charts influence of credit purchases on inflation, monetary policy
No energy pass-through to headline inflation: St Louis Fed paper
St Louis Federal Reserve study finds no pass-through effect from energy prices to trend headline inflation
Budapest wrests control to name external rate-setters
Hungarian lawmakers pass amendment to central bank law giving parliamentary committee right to appoint all four of external rate-setters on seven-strong Monetary Council
Norway's Olsen: price stability remains central bank's priority
Norges Bank governor Øystein Olsen says price stability will remain primary monetary policy objective despite low inflation experienced in Norway over recent years
Monetary policy effects on housing bubble: Bank paper
Bank of England study measures impact of monetary policy and capital inflows on housing activity
Mortgage discounting slows monetary policy pass through: Bank of Canada
Bank of Canada Winter Review 2010–2011 says mortgage-rate discounting slows monetary policy pass-through to lending rates
RBA minutes: rates on hold as flood damage assessed
Minutes of Reserve Bank of Australia rate-setting meeting relay concerns over impact of floods on economic outlook; cautious over rising commodity prices
Buba study on robustness of monetary policy
Bundesbank research examines whether misspecification may have consequences on robustness of monetary policy decisions
King acknowledges risk of wage-price spiral as inflation climbs to double Bank’s target
Inflation of 4% in January prompts Bank of England governor Mervyn King to pen another letter to the chancellor; letter acknowledges mounting inflationary pressures
Kansas City Fed paper on search frictions in monetary policy
Kansas City Federal Reserve paper finds evidence of indeterminacy in monetary policy in models with labour markets search frictions