Monetary Policy

The folly of inflation targets

ARTICLE - This article says that the Bank of Japan should explain what it is intending to do to end deflation and that this will be the first step in defending its threatened independence.

Bank of England Monetary Policy Committee Minutes

MINUTES - Minutes of the Bank of England's Monetary Policy Committee Meeting released on 22 January for the meeting of 8 and 9 January 2003. The same pattern of voting was seen at this meeting as in the previous two meetings. The nine MPC members voted…

Gjedrem on Norway's changing economy

SPEECH - In the speech 'Norway's changing economy' Svein Gjedrem of Norges Bank said history shows that low unemployment cannot ultimately be achieved through high inflation. A monetary policy that contributes to inflation does not create higher economic…

Hamalainen on how the ECB manages the euro

SPEECH - In the speech 'How the European Central Bank manages the euro and what is in store for 2003' Sirkka Hamalainen of the European Central Bank expressed concern over the widely-held perception that monetary policy can solve very different stability…

Norges Bank Press Conference

PRESS CONFERENCE - Norges Bank's Executive Board decided today to reduce the key rate, the sight deposit rate, by 0.5 percentage point with effect from Thursday, 23 January.

UK rate setters worry about global economy

The stalemate within the Bank of England's monetary policy committee continued this month, with two members voting for a rate cut at a fourth consecutive meeting, and some expressing concern about the global economy.

France threatens to ignore deficit cut warning

France on Tuesday defied the European Union's economic rules by suggesting it may not abide by an official order from the other governments to reduce its deficit sharply in the next four years. One finance minister said France's threat not to comply with…

Venezuelan central bank suspends trading

Venezuela's central bank suspended its foreign exchange trading for a week starting Wednesday to try to keep the country's currency, the bolivar, from further plummeting in the fallout of a 52-day-old strike that has crippled oil exports.

Philadelphia Fed Business Outlook Survey, Jan 2003

REPORT - Growth in the region's manufacturing sector remains sluggish, according to firms surveyed for the January 2003 Business Outlook Survey. Manufacturing activity in the region is showing improvement, according to this month's Business Outlook…

IMF Press Release

PRESS RELEASE - IMF Managing Director Issues Statement on Transitional Credit Support for Argentina, 17 January.

Extracts from an interview with Toshihiko Fukui

INTERVIEW - In an interview Toshihiko Fukui, a favourite to become the next governor of the Bank of Japan, says he has a great interest in inflation targeting. But if it was introduced it must be done in such a way as not to weaken discipline.

Edward George at the Scottish Bankers Dinner

SPEECH - In a speech Sir Edward George of the Bank of England said it would be unwise to set monetary policy on the basis of the worst possible outcome. Risks to the economy, including a sharp fall in consumer spending and a house price crash, "need to…

Bergo on challenges facing the Norwegian economy

SPEECH - In the speech 'Challenges facing the Norwegian economy' Jarle Bergo of Norges Bank said it should be possible for us to live well with petroleum, but it will require our addressing a number of challenges. The varying inflow of revenues must be…

Belgium seeks ECB post for bank critic De Grauwe

Belgium is stepping up its campaign to secure a seat on the board of the European Central Bank by nominating Paul De Grauwe, an academic who has criticized the bank for failing to promote growth. De Grauwe recently ran for the job of vice-president of…

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