Economics

Living with a strong euro

Europe’s policymakers should be proud of a strong single currency, and actively promote its international role, says Angel Ubide

Real effective exchange rates in WAEMU

A new paper from the IMF investigates the long-run equilibrium paths of the real effective exchange rates (REERs) of countries in the West African Economic and Monetary Union (WAEMU).

Central Bank of Nigeria 2006 annual report

The Central Bank of Nigeria notes in its annual report for 2006 that macroeconomic stability was achieved through non-accommodating monetary policy and prudent fiscal policies by the federal government.

Chinese capital controls

This working paper by the Bank for International Settlements finds that China's capital controls have allowed the authorities to retain some degree of short-term monetary autonomy, despite the fixed exchange rate.

Randall Kroszner testimony

In testimony during his confirmation hearing, Randall Kroszner, a member of the Board of Governors of the Federal Reserve, said the central bank has achieved much success in reducing and stabilising inflation and inflation expectations over the quarter…

Explaining inflation differentials

This working paper by the International Monetary Fund suggests that some central banks may aim at comparatively high inflation rates mainly to make up for, and to perhaps exploit, lagging internal and external liberalisation in their economies.

Bank of Japan plans gradual share sale

The Bank of Japan is considering ways to limit the market impact of its move to start selling shares in the country's commercial banks, bought between November 2002 and September 2004, by October this year.

Zimbabwe issues new $200,000 note

The Reserve Bank of Zimbabwe has introduced the latest in a series of temporary banknotes which are intended to relieve a critical shortage of notes in the inflation-ravaged country.

IMF on euro area policies

A report by the International Monetary Fund on euro area policies, released on 31 July, said that the outlook for the region was the best in years, but stabilising inflation below 2% may imply further gradual tightening of monetary policy.

Geithner: challenges of global integration

Timothy F. Geithner, president of the Federal Reserve Bank of New York, said that there is growing concern in the US about long-term challenges facing the country, such as the perceived shift in the locus of economic growth away from the US toward Asia.

Italy: annual report 2006

The Italian economy grew at around 1.8% (deflators) in 2006, supported by strong world demand and a cyclical upturn in the euro area.

IMF's Rato on capital flows

In a speech given on 28 July Rodrigo de Rato, managing director of the International Monetary Fund, said that imposing direct limits or controls on capital inflows sets central banks and private financial institutions against each other.

Turkish central bank urges spending reduction

The governor of Turkey's central bank, Durmus Yilmaz, said that the bank had found "gaps" in the country's budget forecasts during the recent election campaign, and urged the government to cut its spending.

Interview with governor of Iraqi central bank

Asharq Al-Awsat, a leading Arab English-language newspaper, has published a far-reaching interview with Dr Sinan Al-Shabibi, the governor of Iraq's central bank. Some of the main points are summarised below.

Fed's latest Beige Book

The latest Beige Book of the American Federal Reserve suggests that, on balance, the world's largest economy continues to expand on a balanced path. The report gave very little clues as to the extent and timing of future interest changes.

Kuwait lets dinar appreciate further

The Central Bank of Kuwait has allowed its currency, the dinar, to appreciate against the dollar for the third time in two months. The dinar subsequently appreciated by 1.7%.

Fund raises 2007 and 2008 growth forecast

The July update of the World Economic Outlook (WEO) published on 25 July by the International Monetary Fund (IMF) increased the Fund forecast for global economic growth for 2007 and 2008 to 5.2%, from 4.9%.

Fed's role in output volatility

This working paper by the Federal Reserve Bank of Chicago examines the contribution of monetary policy to the drop in the volatility of output fluctuations in the United States. The author finds that in three periods in particular - the 1960's, 1976 to…

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