Central Banks
Abu Dhabi bails out Dubai
Richest emirate agrees to provide $10 billion to Dubai World; central bank to support local banks
ECB – Monthly Bulletin (December)
European Central Bank justifies decision to wind down crisis-fighting operations
Fed does not respond to oil price shocks: CEPR paper
CEPR paper argues against the standard view that Fed’s policy responses to oil-price-led inflation caused economic instability
Carstens likely to replace Ortiz as BIS chair
Guillermo Ortiz will step down as chairman of the Bank for International Settlements’ board if he leaves the Bank of Mexico
Zambia’s Fundanga calls for more professionalism
Bank of Zambia’s Caleb Fundanga says the country’s civil service must urgently adopt higher standards of conduct
Nobel laureate Paul Samuelson dies at 94
Paul Samuelson, a key figure in the development of economics, passes away at home in Massachusetts on Sunday
Bubbles a bigger threat than inflation: HKMA’s Chan
Hong Kong Monetary Authority’s Norman Chan sees irrational exuberance as greater risk than spiralling prices
Central banks should have control over credit
Two economists argue in support of a role for credit in central banks’ mandate, and analyse the claim that financial crises are “credit booms gone wrong”
Bank of Canada – Financial System Review
Bank of Canada review says overall vulnerability of the system has declined, but individual households are in an increasingly brittle position
Imbalances must be addressed: Trichet
ECB president Trichet points to imbalances in emerging Asian countries and stresses importance of Europe-wide and international cooperation on macroprudential supervision
Ecuador chief and general manager quit
Upheaval at the top of the Central Bank of Ecuador sees Carlos Vallejo and Karina Sáenz depart; cabinet minister Diego Borja is named new governor
Shirakawa on a delicate balancing act
Bank of Japan’s governor notes role of experience in safeguarding stability
Using inflation to erode the US public debt
Paper examines relationship between size of debt and the temptation to inflate
Rate decisions this week
Korea, New Zealand hold but indicate tightening soon to come. Bank of England and Bank of Canada maintain policy stance, along with Peru and Brazil as Denmark and Iceland cut
America can learn from us: Uganda’s Tumusiime-Mutebile
Bank of Uganda’s governor says risk-based supervision saved the country’s banks; reinforces the importance of open-market principles for the economy
Iceland cuts on further signs of stability
Central Bank of Iceland continues with “gradual” easing as currency stabilises
SNB steps towards exit
Swiss National Bank announces end to credit easing