Economics

Comment: Islamic banking - progress and hurdles

Recent IMF research puts the number of Islamic financial institutions worldwide above 300, having risen from only one in 1975. The total assets of these institutions, growing at 15% a year, have reached an estimated $250 billion.

The ECB's path that was not taken

The ECB risks painting itself into a corner following its recent interest-rate hike, according to this article published on Monday 12 December. The move implies more increases will follow, it says, and that will cost the Eurozone economies heavily.

Dallas Fed's Fisher on globalization & govt policy

In the speech 'Globalization and government policy' given on 2 December Richard Fisher of the Federal Reserve Bank of Dallas said the Fed must not accommodate growing federal budget deficits by compromising monetary policy, and it must continue to fight…

Indonesia's bumpy road to credibility

With inflation set to stay in double digits for much of 2006, Indonesia's central bank continues to face a precarious balancing act, according to this article published on Monday 12 December. The puzzle is how to balance monetary tightening to cool…

Quaden notes rates favour euro zone growth

European Central Bank council member Guy Quaden told Belgian TV that the ECB's benchmark rate can still foster economic growth and that policy makers haven't decided whether to add to this month's increase in rates.

Bank of England defends communication

A study published by the Bank of England on its communications on Monday 12 December that financial markets show the strongest reaction to minutes of its MPC policy meetings and the quarterly Inflation Report.

Stark tipped as Issing's replacement at ECB

Germany wants to hold its seat on the European Central Bank's executive board and could nominate Bundesbank Vice President Juergen Stark to replace Otmar Issing next year, Deputy Finance Minister Thomas Mirow said in an interview this week.

ECB's Bini Smaghi on economic forecasting

In the speech 'Economic forecasting and monetary policy' given on 8 December Lorenzo Bini Smaghi of the ECB hinted that further interest rate increases may be on the way for the euro zone.

Paper on central bank research, 1990-2003

The Bank of Canada Working Paper "Quantity, quality, and relevance: Central bank research, 1990-2003" published December 2005 documents the research output of 34 central banks from 1990 to 2003, and use proxies of research inputs to measure the research…

Greenspan saves the world again

Federal Reserve chairman Alan Greenspan attended his final G7 meeting in his official capacity last weekend. He receives various tributes, honours and gifts, including a cartoon depicting him as a goal keeper.

Greenspan says debate, openness must be balanced

Federal Reserve chairman Alan Greenspan said in response to questions from Congress that the FOMC works hard to balance policymakers' need to have private discussions about economic matters and investors' desire for transparency.

Comment: Risks facing buoyant South Africa

As is the case in many emerging market economies, South Africa is yet to escape the perception that its economic fortunes are to a large extent dependent on the performance of its currency.

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