Monetary policy
Basel III could distort monetary policy: ECB’s Bini Smaghi warns
European Central Bank executive board member Lorenzo Bini Smaghi says Basel III may have unintended consequences on monetary policy
CEPR advocates rule-based approach to central bank projections
Centre for Economic Policy Research study says central bank projections based on interest rate rule yield same results as one on market expectations
Bank’s Posen makes case for further stimulus
Bank of England Monetary Policy Committee member Adam Posen advocates use of more “monetary action” to stimulate economy
Bernanke charts new course for Fed economics
Federal Reserve chairman Ben Bernanke suggests research must veer away from assumptions based on classical paradigm; stresses models must better capture irregular behaviour
New York Fed research finds flaws in inflation expectations polls
New York Federal Reserve research uncovers faults in measuring inflation expectations; says questions on rate of inflation rather than price level provide better guide to future uncertainty
RBNZ’s Spencer: monetary policy will have more bite
Reserve Bank of New Zealand deputy governor Grant Spencer says cautious lending means monetary policy will have more bite than in previous years
BoE: higher probability of further stimulus
Bank of England Monetary Policy Committee minutes show members felt more stimulus measures may be required to steer economy towards recovery
Bank’s Bailey places public at heart of stability remit
Bank of England’s Andrew Bailey says public acceptance of stability goal necessary to stave off future crises
RBA appoints new head of economic research
Reserve Bank of Australia promotes deputy head of domestic markets Jonathan Kearns to head of economic research
Riksbank's Svensson says monetary policy had no role in crisis
Riksbank deputy governor Lars Svensson denies monetary policy was responsible for the financial crisis
Rajan, Krugman renew spat
Ex-IMF chief economist Raghuram Rajan and Nobel laureate Paul Krugman revive clash over central banks' role in the crisis
RBA’s Stevens: monetary policy not necessarily a ‘blunt instrument’
Reserve Bank of Australia governor Glenn Stevens says monetary policy suited to guarding macroeconomic stability
Beijing makes two changes to MPC
People’s Bank of China deputy governor Du Jinfu and Industrial and Commercial Bank of China president Jiang Jianqing will join advisory Monetary Policy Committee
RBI narrows rate corridor with repo, reverse repo hikes
Reserve Bank of India lifts repo and reverse repo rates in first-ever mid-period policy review; narrows rate corridor as flagged to cut market volatility
Netherlands Bank paper: Basel III could disrupt monetary transmission
Dutch central bank research warns new Basel III rules could lead to greater demand for long-term assets, leading to steeper yield curve which could disrupt monetary policy channel
Monetary policy best placed to boost short-term growth: King
Bank of England governor Mervyn King tells trade unionists that monetary policy is best suited to revive flagging broad money figures; says fiscal emphasis should be on debt reduction
Central banks are preferred regulators: CentralBanking.com panel
Charles Goodhart, Sir John Gieve and Paul Mortimer-Lee say regulation is best housed within the central bank but warn challenges remain
Gold to break $1,300 barrier: GFMS
Gold forecast to rise above the $1,300 mark, research body says; central banks becoming net buyers a factor
CEPR: PIGS neglected current account deficits
Centre for Economic Policy Research study shows adoption of euro caused countries to relax current account discipline
SNB: money market rates best target during recessions
Swiss National Bank study shows money market-based monetary policy procedures create greater stability
Rate round-up: Canada, Peru hike as Sarb cuts
Canada hikes rates while South Africa cuts on rising rand; continued uncertainty in global economy prompts Korea, Japan and Australia to keep rates steady
France’s Redouin favours central banks’ new dual role
Banque de France first deputy governor Jean-Paul Redouin says having financial stability and monetary policy under one roof will strengthen surveillance of financial sector
Fed cannot bear full burden of job creation: Fisher, Plosser
Regional Federal Reserve presidents Richard Fisher and Charles Plosser say loosening monetary stance further will not cure unemployment ills; monetary policy no panacea for macroeconomic problems
Riksbank's Öberg calls for careful policy normalisation
Riksbank first deputy governor Svante Öberg points to risk in returning benchmark rate to pre-crisis levels