Monetary Policy

Madhavpura brass grossly violated prudent banking

INDIA - Jagdish Capoor stepped down on 30 June as the deputy governor of the Reserve Bank of India (RBI). He blames the management of the Gujarat-based Madhavpura Mercantile Cooperative Bank (MMCB) for throwing all prudential norms to the winds. Extracts…

Alan Greenspan on the value of public outreach

SPEECH - Federal Reserve Board Chairman Alan Greenspan gave a speech at the dedication of the Visitors Center at the Federal Reserve Bank of Chicago, Chicago, Illinois on 28 June titled The value of public outreach by the Federal Reserve.

MOF denies asking BOJ to use inflation targets

JAPAN - Japanese Finance Minister Masajuro Shiokawa on 29 June played down a media report that government representatives at the Bank of Japan policy board meeting yesterday, 28 June, had put a strong request to the central bank to introduce an inflation…

Federal Reserve cuts rates, by less than expected

US - Alan Greenspan, the U.S. Federal Reserve Board chairman and Federal Reserve governors, ended a two-day meeting yesterday, 27 June, by reducing interest rates, but only by a quarter of a percentage point, instead of the half-point cut that some…

Interest rate moves around the world

FEATURE - Yesterday, 27 June, the Federal Reserve reduced key US interest rates for the sixth time this year. Here we feature other recent interest rates moves around the world (among the other big central banks the Bank of England has held it's rate…

NBER - US 'recession' may already have peaked

ARTICLE - In a letter to the editor of the Financial Times in London, Martin Feldstein, President of the National Bureau of Economic Research in the US says that even if a recession occurs it will be a long time before it becomes official.

Bank of France to cut jobs at banknote facilities

FRANCE - The Bank of France yesterday informed unions of 494 job cuts by 2005 in its banknote production units. The plan, aimed at bringing down the cost of banknote production to improve competitiveness, mainly affects facilities at Chamalieres and Vic…

Comparing measures of core inflation

RESEARCH - Todd E. Clark, of the Federal Reserve Bank of Kansas City has published an article in the Bank's Second Quarter 2001 Economic Review. The research compares five different measures of core CPI inflation.

RBI introduces new scambusting agency

INDIA - The Reserve Bank of India is setting up an agency to specifically investigate scams in thefinancial sector. An RBI-constituted panel, headed by legal advisor to the central bank NL Mitra, at its last meeting held on 23 June in Mumbai gave the…

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