Monetary policy
Conflicts of interest in central banking
The crisis has highlighted how interests can diverge in the monetary policy-making bodies of federal central banks, writes Daniel Gros
Interview: Jaime Caruana
Jaime Caruana, the general manager of the Bank for International Settlements, talks to Catherine Snowdon about the institution’s role in responding to the financial crisis
More data, not theory
The crisis has shown the dangers of placing models at the heart of policymaking. An empirical approach is the answer, says Kevin Gardiner
Bank of Finland paper assesses China’s two-track system
Bank of Finland study explains why monetary policy in China uses a combination of price and quantitative instruments
Bank votes unanimously to hold rates
Bank of England minutes show Monetary Policy Committee members Martin Weale and Spencer Dale drop vote to raise rates due to downside risk from euro area
Policymakers must act together, says Lagarde
Lagarde urges policymakers to "act boldly, act together and act now" to restore confidence in the global financial market
RBI’s Mohanty on success of new monetary policy framework
Reserve Bank of India executive director Deepak Mohanty offers positive feedback on central bank’s new operating framework
Exchange rates are influenced by macroeconomic performance: Buba paper
Bundesbank study finds link between macroeconomic fundamentals and exchange rate movements through expectation of monetary policy
Unconventional debt markets create monetary policy asymmetries: Banque de France paper
Banque de France study says differences in bond market characteristics can lead to asymmetries in 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