Opinion/Central Banks
Why the Bank of Japan keeps on doing nothing
For pretty much all of 2004, the Bank of Japan has done nothing. And looking ahead to 2005, it's not expected to do a whole lot more, this article suggests. That the BOJ isn't having a serious discussion of deflation ending anytime soon throws cold water…
Turkish delight at monetary credibility
CentralBankNet always tries to catch up with central bank governors who visit London. Here, Nick Carver reports on Turkey's successful struggle for monetary credibility in Turkey.
Asian central banks should follow S Korea's lead
The more Asian central banks try to convince the markets that their judgment on interest rates isn't clouded by political interference, the less anyone believes them, this article says. It suggests policy makers from Jakarta and Manila to Bangkok and…
Fed debates policy for post-Greenspan era
This article reports that battle lines are drawn at the Federal Reserve between those who favour formal inflation goals and those who don't, with the debate heating up ahead of Alan Greenspan's retirement. It cites Roger Ferguson and Ben Bernanke at the…
The lobster trap of central banking
According to an article published this week, central banking is a gigantic lobster trap. It is set by the commercial banking industry and the government, which grants the central bank a monopoly over the control of the monetary reserves (government debt)…
The fight over Venezuela's central bank profits
Last weekend Venezuela's President Chavez once again attacked the central bank over the amount of "foreign exchange profits" it should turn over to the government. With Chavez threatening to go to the Supreme Court on the issue, this article suggests the…
Central bankers need to learn new tricks
This article speculates as to whether central bankers play five-a-side football in policy meetings. Or at least, there is no point in them doing anything else, it says. With complete credibility, they really don't have to do very much at all. But…
When currency empires fall
Is the dollar doomed as the world's reserve currency? CentralBankNet caught up with Professor Avinash Persaud at a lecture on Thursday 9 October as he set out his dramatic vision of how global currency markets might evolve over the course of the 21st…
What's missing at Asian central banks? Credibility
This article argues that Asia lacks a central banker with the clout enjoyed by the Federal Reserve chairman or the ECB president. This lack of credibility exists because of their aggressive manipulation of currency rates, their spotty histories of…
Rising tide of computer crime
UK banks have lost £4.5m to internet fraud in the last year. The majority of this fraud is thought to be carried out by organized criminal gangs in Eastern Europe. CentralBankNet reports on this growing phenomenon.
Greenspan: The man who does the opposite
This article looks at what it says is the recurring pattern in Alan Greenspan's life of saying the opposite of what he is thinking/doing. Giving the example of his obscure but now famous essay, "Gold and Economic Freedom" published in 1966 it asks why he…
IMF urges China to float yuan now
IMF managing director Rodrigo de Rato said on Wednesday 29 September that it would be to China's advantage to uncouple the yuan from the dollar. This article looks at the chances of China making some concession on the currency question at Friday's G7…
Bank of Canada Working Paper on Taylor Rules
In this Working Paper from the Bank of Canada the authors compute welfare-maximizing Taylor rules in a dynamic general-equilibrium model of a small open economy. They find that the welfare gains from moving to the optimal Taylor rule are larger than…
Is the euro good for Europe?
The euro has existed as a currency for over five years now, and notes and coins have been in circulation for over two. This article asks whether the coin of the realm in 12 European countries has accomplished its goals.
After Alan Greenspan, who?
This article looks at some of the favourites to replace Alan Greenspan as Chairman of the Federal Reserve when he steps down. Because of the Fed chairman's enormous influence on the U.S. economy and global financial markets, the selection will be among…
Measuring financial stability
Following the IMF's latest global financial stability review, released on Wednesday, one might expect central bankers to be relaxing. The Fund could see few threats on the horizon. In fact, central bank crisis watchers have never been busier. Mostly they…
Korea's possible central bank deficit
The Bank of Korea is highly likely to register a deficit this year for the first time in a decade, according to this article. The Ministry of Finance should refrain from meddling too much in the market and let the central bank do its job of stabilising…
Is India meddling with central bank's autonomy?
India's Trade minister has recently said "We don't want interest rates to harden". This article questions the effect of such "official" comments on the RBI's autonomy and says there's now the risk of monetary policy becoming a political football in India.
Bank to take market view
Hidden within the Bank of England's most recent inflation report is a significant tweaking of the Bank's inflation targeting stance. CentralBankNet reports on the Bank's adoption of market forecasts of interest rates for some of its projections.
Global currency answer to unstable world economy
This article asks whether floating exchange rates have proved to be the ideal replacement for the unsustainable adjustable exchange-rate pegs of the Bretton Woods monetary regime. If the global market economy is to thrive in the decades ahead, a global…
Are there too many yes men on the MPC?
This article reports that the Bank of England's Monetary Policy Committee has remained significantly more consensual than their predecessors, with an average "maverick rating" of just under three compared with nearly five among previous members. This…
Bulwarks against chaos
The sixtieth anniversary of the Bretton Woods agreement has prompted comment in the media and provided a peg for a number of conferences. At least two of these were held last month in beautiful surroundings in Italy. The Editor of Central Banking journal…
Central bank coxswain can't fully trust the crew
The Bank of England sees its role as a manager of other people's behaviour, this article says. A bit like the coxswain in a rowing race, the Bank both barks out orders and has a well-trained hand on the tiller. Central bankers, inevitably, like to think…