Opinion/Central Banks
Fed should hold
The uncertainty over the impending war in Iraq and the Fed's diminishing policy options mean that, despite weak data, a wait-and-see is the strategy for the open market committee, which meets tomorrow, argues the FT's editorial.
How much gold will the central banks sell?
MONDAY FEATURE - Until recently there was a widespread expectation that central banks would continue to unload gold from their reserves on quite a large scale for many years to come. But this assumption is now being called into question. What is the…
IMF independence
An article in the Financial Times considers a speech made by Ed Balls, the UK Treasury's chief economic adviser, in Washington last week. He argued that the IMF should be independent along the same lines as an independent central bank. This would…
Vintage ECB
FEATURE - Reports that certain ECB policy makers weren't exactly seeing eye to eye inspired a question to Lucas Papademos on the subject at Thursday's press conference. The answer did not reveal much, apart from the ECB's choice of wine at the top table,…
Dissent inside the Eurotower
ARTICLE - This article suggests that even if the ECB cuts interest rates on Thursday, the move will do little to satisfy critics pressing for a reappraisal of the bank's policymaking framework. The article suggests tensions between key ECB officials…
Background on Kenya's new central bank head
FEATURE - The new Governor of the Central Bank of Kenya (CBK), Dr Andrew Mulei, is currently the Executive Director of the African Centre for Economic Growth. This feature provides some background details on the new CBK chief.
St. Louis Fed wears many banking hats
ARTICLE - This article takes a look inside the St Louis Federal Reserve Bank and examines its operations including payment systems.
Incoming BOJ Gov. Fukui mustn't be an also-ran
ARTICLE - This article provides some background on the new governor of the Bank of Japan Toshihiko Fukui. At one time, it says, Fukui was at the forefront of moves to reform the central bank, which had been disparagingly described as "nothing more than a…
If the ECB cuts rates it should do so boldly
ARTICLE - This article says the case for an ECB rate reduction this week is overwhelming. But any cut must be decisive otherwise it will have very little effect on the euro-zone economy. "If you are going to hit it, hit it hard."
B of E's King comes out on the attack
FEATURE - Bank of England governor in waiting Mervyn King showed what was described as a "flash of steel" by Observer in the Financial Times when facing questions at Tuesday's parliamentary Treasury select committee meeting in London.
Fukui's appointment designed to bring peace
ARTICLE - This article suggests peace between the central bank and the Finance Ministry appears to be the motive behind the government's choice of new leadership at the Bank of Japan.
Now not the time for fiscal or monetary austerity
LETTER - An article by the Bundesbank's Jurgen Stark gets some criticism from a chief economist who says this is not the time for fiscal or monetary austerity. In a letter to the FT professors Olivier Blanchard and Francesco Giavazzi say that failure to…
Koizumi's timidity
ARTICLE - A Leader column in the Financial Times argues that Fukui's appointment shows "a lack of courage" from prime minister Junichiro Koizumi with Fukui having the "weakest punch" against falling prices.
CentralBankNet Monday Special Feature
SPECIAL FEATURE - Worrying about asset price cycles is a popular pastime. Not surprising, when UK, French and German stock market indices are struggling to maintain half their peak levels. We won't even talk about Japan. But what, if anything, can be…
Sveriges Riksbank Press Release
PRESS RELEASE - Sweden in the European economy, 19 February. Deputy Governor of the Riksbank Lars Nyberg today spoke at Commerzbank Securities' capital market conference about Sweden's role in the European economy and the Riksbank's role in the EMU…
Fixing a forecasting model that ain't broke
ARTICLE - The Bank of England is due to start using a new forecasting model from June this year onwards. This article suggests that while it is good to keep up with the latest developments in economics, the new model has not been fully tested and that…
War is no excuse for European profligacy
ARTICLE - Bundesbank vice-president, Jurgen Stark, says the "never ending" debate over the stability and growth pact has damaged its credibility but the rules of the Pact must not be relaxed. Such a relaxation, called for by the UK and Germany, would,…
Choosing the new Bank of Japan governor
ARTICLE - Japanese Prime Minister Junichiro Koizumi is due to announce by the end of this month his choice for governor of the Bank of Japan, the central bank of the world's second-largest economy. He will also pick two deputy governors. The article…
Can't compare today's economic problems with 1991
ARTICLE - Stephen King looks at Alan Greenspan's testimony and says comparing the current economic position with the 1990-91 experience is rather futile. Both periods involved Iraq and at least one period will have involved war. Other than that however,…
The Bank of Canada and the search for a new No. 2
ARTICLE - The Bank of Canada has received a wide range of inquiries from both inside and outside the bank to fill its No. 2 job, the central bank's selection committee chairman said on Friday.
Musical chairs at the ECB
ARTICLE - The plan to alter the ECB's voting council gets some attention here. The article says even if Europe's finance ministers agree to the rotation plan they should revisit the issue soon. Competency, not nationality, should be the key qualification…
CentralBankNet Monday Special Feature
SPECIAL FEATURE - In this weeks special feature CentralBankNet looks at the recent court case which the BIS lost requiring them to pay more money to their small shareholders. The episode labels the BIS as "mean" and bought continued criticism of the BIS…
Is Japan ready to reflate?
ARTICLE - When the Japanese prime minister says he wants a "deflation fighter" at the Bank of Japan, he may not be referring to monetary policy at all. This article says the Japanese consensus view - one shared by Mr Koizumi and Masaru Hayami, the BoJ's…
Paul Krugman on Alan Greenspan's testimony
ARTICLE - Last week we re-published an article by Paul Krugman, a much respected figure in the world of economics, saying that Alan Greenspan was an apologist for Bush's wayward fiscal policies. Now having heard Greenspan's testimony Professor K puts pen…