Monetary policy
Eurosystem crisis measures averted prolonged crisis: ECB paper
European Central Bank study says introduction of unconventional monetary policy measures during financial crisis successfully provided liquidity to banking system
Philly Fed’s Plosser on limitations of monetary policy
Philadelphia Federal Reserve president Charles Plosser warns active use of monetary policy will not stabilise economy
Bank rate set to remain on hold despite fresh rise in inflation
Bank of England unlikely to raise rates despite higher-than-forecast rise in inflation in December; analysts say central bank is right to keep rates on hold
Sweden’s Ingves draws roadmap to macroprudential mandate
Riksbank governor Stefan Ingves discusses measures in governance, implementation and econometrics needed for successful macroprudential policy
Spain’s monetary policy could not have prevented housing bust: IMF
Fund study says retaining the peseta would not have necessary prevented the housing collapse in Spain over the last decade
Government delay holds up launch of Bank of Israel’s new rate-setting body
Bank of Israel awaits government’s selection of three external members to new Monetary Committee seven months after passage of law for new interest rate-setting measures
Inflation in emerging markets driven by exchange rates: IMF study
Fund study shows emerging market countries exhibit strong exchange rate monetary policy channels compared to more conventional channels
Renminbi liberalisation, price stability priorities: PBoC
People’s Bank of China says currency internationalisation, price stability top priorities for 2011, following annual meeting
Debt management poses greater refinancing risks: Netherlands Bank
The Netherlands Bank study says greater reliance on short-term debt requires better coordination between debt managers and central banks
Bank minutes: inflation may hit 4% in spring
Bank of England Monetary Policy Committee warns inflation could reach 4% in spring; says pace and extent of subsequent fall highly uncertain
RBA minutes: rates on hold as global downside risks rise
Minutes of Reserve Bank of Australia rate-setting meeting relay concern over deteriorating situation in Europe; more positive on US, China
Capital flows drive financial imbalances: IMF study
Fund paper says capital inflows are main factor behind financial imbalances, with effects worsened by insufficient oversight
ECB points to securitisation, interest rate risk concerns
European Central Bank’s December Financial Stability Review stresses importance of more transparency in asset-backed securities market; highlights interest rate risk worries
ECB launches two educational games
European Central Bank president Jean-Claude Trichet says launch of educational games will inform public about monetary policy activities
IMF: global stock markets sensitive to US monetary policy shocks
Fund study finds strong relationship between global stock prices and US monetary policy
Norges Bank examines time inconsistency models
Norges Bank study examines methods to model time inconsistency problem in monetary policy over extended period
Riksbank’s Nyberg challenges Svensson over monetary policy framework
Riksbank deputy governor Lars Nyberg says monetary policy must support macroprudential policy; comments contrast with Svensson’s calls for monetary policy to focus on price stability
Central Bank of Turkey – Inflation Report (Q4 2010)
Central Bank of Turkey’s fourth quarter Inflation Report says despite strong domestic demand, weak external demand forced the central bank to keep rates low
Kansas Fed’s Hoenig open to shorter lag in releasing FOMC transcripts
Kansas Federal Reserve president Thomas Hoenig says nothing inherently wrong in publishing rate-setter meeting transcripts with delay of less than five years
Brazil raises reserve ratio to ease impact of capital inflows
Central Bank of Brazil lifts reserve requirement ratio in bid to stem inflationary pressures resulting from capital inflows
ECB bucks market expectation with silence on further bond purchases
European Central Bank extends liquidity operations but does not commit to more bond purchases; move comes against market anticipation, dividing analysts
BoE paper: capital inflows primary cause of US housing bubble
Bank of England study shows large capital inflows had a greater effect than monetary policy in generating housing bubble in United States
IMF: inflation targeting reduces dollarisation
Fund study says inflation targeting framework strengthens monetary policy channel in countries with high levels of dollarisation
Taylor calls on Fed to focus on price stability, not employment
Economist John Taylor likens Federal Reserve’s quantitative easing programme to fiscal policy; says central bank should focus on single price stability mandate