Monetary policy
Unconventional monetary policy reviewed
Claudio Borio and Piti Disyatat set out a framework of definitions to help categorise and clarify the functions of various monetary policy tools, and assess central banks’ actions since the crisis
Reflections on liquidity crises: Borio
The BIS’s Claudio Borio discusses ten propositions on liquidity crises, including the importance of improving buffers and the need for principles on central bank liquidity provision
Fed behaviour matches optimal target rule
A discussion paper on the Fed and monetary policy rules argues that an optimal target rule, rather than the Taylor rule, best explains the central bank’s policy behaviour
Turkish credit conditions improving
Central Bank of Turkey’s policy minutes show strains in the country’s credit markets are easing
Fiscal stimulus crucial for recovery
Centre for Economic Policy Research (CEPR) compares the Great Depression with the global credit crisis
Central banking law in the crisis: Shirakawa
BoJ governor says that the crisis has highlighted why central banks need independence; outlines legal developments in central banking
Brazilian economy on the up, minutes show
Central Bank of Brazil’s policy meeting minutes also show inflation is under control
BoJ minutes reveal growing rift with government
Minutes of the Bank of Japan’s October policy meeting show senior minister questioning policy decisions and stance
The relationship between money, credit and policy
A new paper finds evidence that the relationship between money and credit changed after the second world war
Zero lower bound may have cost US $1.7 trillion
San Francisco Fed’s John Williams argues zero bound on interest rates has had negative effect and could continue to do so
Kenya cuts by 75 basis points
Central Bank of Kenya chops three-quarters of a point off benchmark rate
Israel makes surprise hike on inflation fears
Bank of Israel’s Fischer raises key rate to 1% from next month; cites a jump in inflation expectations even with rate hikes factored in
Hungary shaves by 50 bps as expected; widens rate corridor
National Bank of Hungary cuts key rate to 6.5% as indicated; widens rate corridor citing better market conditions
South African Reserve Bank - Monetary Policy Review
SARB report explains that downside risks to inflation from poor output and expenditure figures underpinned rate cuts between May and August
OECD hikes growth forecasts
Paris-based organisation raises its growth forecasts for next year and publishes 2011 expectations, citing the momentum of the recovery in non-members such as China
Sri Lanka cuts rates
Central Bank of Sri Lanka cuts benchmark borrowing cost to 7.5%, narrows rate corridor
Brazil rate-setter quits over controversy
Brazilian central bank’s monetary policy director resigns days after revealing rate-setters’ frustration at Lula
ECB’s Tumpel-Gugerell on dangers of all roads leading to Rome
Gertrude Tumpel-Gugerell, an ECB executive board member, says the work of the European Systemic Risk Board would be crucial in future approach to financial stability
Woodford unveils new model for transmission mechanism
New York Federal Reserve paper co-authored by Michael Woodford introduces a new model for monetary policy which considers the effects of unconventional policy
Bank of Israel – Third Quarter Inflation Report 2009
Report shows inflation slowed as a result of rate hike
Czechs set fixed time for policy announcements
The Czech National Bank will announce monetary policy decisions at 1 p.m. starting next February
Swiss stability maintained through tighter regulation: SNB board member
Thomas Jordan, a member of the Swiss National Banks’ governing board, also says record low interest rates could lead to excessive behaviour in mortgages and real estate again
Hungary split on cut
Rate-setters from the National Bank of Hungary were divided over the size of the cut required, according to minutes of the October policy meeting
Bank compromises with £25 billion QE expansion
Bank of England rate-setters vote for moderate expansion of quantitative easing, citing conflicting economic pressures