Monetary Policy

Shadow Committee slams Fed

According to the US Shadow Open Market Committee the Fed had lsot sight "of its long-run inflation objective of price stability" in its recent series of rate cuts.

IMF Establish Joint Regional Training Centre

EUROPE - The Managing Director of the International Monetary Fund (IMF), Horst Kohler, and the Minister of Finance for Brazil, Pedro Sampaio Malan, signed a Memorandum of Understanding to establish a Joint Regional Training Center for Latin America (BTC)…

Call for Italian monitoring

ITALY - The Organisation of Economic Co-operation and Development (OECD) has called for a joint watchdog to monitor Italy's banking and insurance sectors.

Argentine plan approved by finance leaders

ARGENTINA - Argentina's Economy Minister Domingo Cavallo was in Washington over the weekend of 28-29 Apr to attend the Spring meetings of the International Monetary Fund and World Bank. He outlined what he proposes to do to put Argentina back on track to…

RBA will make rates decision at meeting on 1 May

AUSTALIA - The Reserve Bank of Australia board meets tomorrow, 1 May, to consider whether the future risks to the Australian economy warrant further interest rate reductions. And according to market economists the decision will be a finely balanced one.

Brown rejects switching inflation target

In a keynote speech to the International Monetary Fund's international monetary and financialcommittee, attended by 24 finance ministers, UK Chancellor, Gordon Brown, rejected calls for the UK to adopt a 2% inflation target to fit in with the euro-area

Germany cuts growth forecast

GERMANY - The German government has joined its European neighbours by slashing its growth forecasts. Economic expansion in Europe's largest economy is expected to be only 2% in 2001, 0.75% less than previously forecast.

International Economic Review article

RESEARCH - Jon Faust and Lars E. O. Svensson of the Board of Governors of the Federal Reserve, writing in the International Economic Review, define and study transparency, credibility, and reputation in a model where the central bank's characteristics…

US is wrong to browbeat the ECB into cutting rates

GERMANY - America is wrong to try to browbeat the European Central Bank into cutting interest rates "I hear but I do not listen," remains the response of Wim Duisenberg, president of the European Central Bank, to the clamour for lower interest rates.

Thai Central Bank Cuts Forecast As Exports weaken

THAILAND - The Bank of Thailand (BOT) has slashed down this year's economic growth projections to 2.5-4 percent, from 3-4.5 percent, due to the weakening exports in light of the U.S. and Japanese slowdown, according to local T.V. news reports on Apr 27.

Euro rates held steady

EUROPE - The European Central Bank has decided to leave interest rates unchanged after a scheduled board meeting in Frankfurt on Apr 26.

Economic outlook bleak for Japan

JAPAN - The Bank of Japan has painted a bleak economic picture of weak growth combined with intensifying deflation in its half-yearly report. But a 1.6% rise in retail sales in March from a year earlier provided a ray of hope for new Prime Minister…

Optimal horizons for inflation targeting

ARTICLE - This paper investigates the problem of selecting an optimal horizon for inflation targeting in the United Kingdom. It was written by Nicoletta Batini and Edward Nelson of the Monetary Policy Committee Unit, Bank of England.

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