Opinion
Basel II may feed volatility
Despite recognising that the new Basel accord is "widely viewed as a much needed effort to deal with the shortcoming of the current system", a recent working paper by the Bank of England (BoE) raises new concerns about how the accord may exacerbate…
Pricking a housing bubble, Australian style
Reserve Bank of Australia governor Ian Macfarlane has declared victory in the fight to deflate one of the world's most obvious housing bubbles, according to this article published on Wednesday 17 August. In fact, he is so confident he has succeeded that…
ECB behind BoE, Fed on clarity; must reveal more
This article published on Thursday 18 August reveals the results of a poll of economists and academics who were asked to compare the ECB with the Bank of England, U.S. Federal Reserve and Bank of Japan for clarity of communication.
Comment: Governments eye foreign reserves
Two dimensions of official sector reserves receive a lot of attention in the press, in policy circles and from market analysts: foreign reserves held by central banks and public pension funds.
Single currency in SADC remains elusive
Dreams of a regional central bank are far from fruition for the countries of the Southern Africa Development Community (SADC), according to this article published Tuesday 16 August.
In search of King's defence
Two articles published Thursday reflected on the Bank of England's last MPC meeting which saw the governor outvoted for the first time. One says the UK's "boring" monetary policy just got a whole lot more interesting, noting that heavyweight Charlie Bean…
Comment: Views on King's gambit
Here is a roundup comments on the Bank of England's publication of the minutes of the latest MPC meeting, which revealed that, for the first time in the committee's history, the governor voted with the minority (see yesterday's CentralBankNet).
Oil-market frenzy and the Fed
This editorial by The Washington Times, published on Tuesday 16 August, says the job of the Federal Reserve has become far more complicated today. Today, following years in which international financial markets have been increasingly integrated, global…
Comment:Test for Mervyn King's communication skill
What does yesterday's revelation that the top brass of the Bank of England's MPC were outvoted at August's monetary policy meeting imply for the market's view of future interest movements in the UK? And what does it tell us about the institutional set-up…
Why China has to revalue more
This article suggests another reason for China's recent decision to revalue the renminbi. Rather than bowing to international pressure to end the trade advantage it received, it suggests China's attempts to engineer a soft landing for its economy simply…
Comment: Why Foreign Reserve Portfolios Matter
What do recent trends in official reserve management imply for foreign exchange markets and the conduct and coordination of monetary policy across the globe?
Fazio should be forced out of the Bank of Italy
According to this article published on Monday 15 August, Antonio Fazio has tossed aside the few strict principles a central banker must follow. He has become an embarrassment, it says, and there is now no credible way he can remain in office.
Why do we regulate?
This article looks at the need to regulate banks. It quotes a recent paper which says it is difficult to identify a sound policy reason for regulating banks. We do so because we want to, not because we must, it says.
Comment: Output losses from financial crises
Central bankers and regulators, like other professionals, naturally spend a lot of time on the technical details of their jobs. Sometimes it is well to be reminded of just how much is at stake in their policy decisions.
Fed is content with size, pace of rate increases
This article published on Wednesday 10 August suggests why impatient analysts are wrong to complain that the Federal Reserve is raising interest rates too slowly.
A punch bowl made in China
China is supplying a punch bowl to keep the party going despite the Federal Reserve's best efforts, according to an article published on Wednesday 10 August. So consumers can thank Beijing and other Asian central banks for all the cheap credit, it says.
Greenspan, her art-throb
Fascinated by the Federal Reserve chairman, this article looks at the work of an artist who has completed 20 paintings and sketches of Alan Greenspan. The artist then decided to display her works at a gallery on Long Island over the summer.
Comment: Faster growth to spur higher rates?
What does the recent spate of good news in terms of economic growth in most of the world's largest economies imply for interest rate and the bond market?
Comment: China points way to wider reform
Robert Pringle, editor of Central Banking, explains why China's recent moves underline the need for a wider reform of world money (extracts from an interview with the German newspaper, Handelsblatt published on 11 August).
Bank of England needs to re-examine its forecasts
This article published on Wednesday 10 August says that the Bank of England's Monetary Policy Committee is under great pressure to get its forecasts right. It asks whether it's possible we are too reverential when it comes to the Bank's projections.
Shadow on the Euro
An article published this week notes that five months after central banks talked of increasing their euro reserves at the expense of the dollar, the speculation now is about how long the euro will last. With its credibility in danger the article asks…
Doubts on Bank of England's forecasting
Nobody could say that Mervyn King, governor of the Bank of England, was defensive at yesterday's press conference on the latest Inflation Report (who has ever seen Mervyn on the defensive?), but he certainly knew he had some explaining to do.
Why interest rates could plunge as low as 3.5%
The 6th May 1997 is a date that is burnt into the minds of Bank of England employees, according to this article published on Monday 8 August. Since being granted its independence, the Bank has built up an eight-year track record of independent thought…