Opinion
BOJ on shaky ground in anti-deflation fight
This article considers whether the Bank of Japan's credibility is at risk. It asks whether the BOJ's quantitative easing policy is based on solid logic or represents a very risky move by governor Fukui. If the economy starts growing strongly it could see…
Interview with San Francisco Fed's Robert Parry
In an interview published on Monday 19 January, soon to retire President Robert Parry of the San Francisco Fed said the US economy "is growing at a pretty rapid pace" while inflation remains at historic lows. The toughest time for him at the Fed was 2001…
Venezuela's central bank under pressure
This article looks at the position of the central bank of Venezuela (BCV) following calls from President Hugo Chavez to hand over $1 billion from its reserves. Chavez has called it 'absurd' and 'crazy' for the reserves just to sit in the bank, and…
RBI faces tough issues to resolve the 'trilemma'
This article looks at a school of thought which believes that the Reserve Bank of India has failed to find out an inflexion point for short-term rates. The result, it says, is an unabated inflow of capital and excess of rupee-liquidity in the inter-bank…
ECB recieves a letter bomb
A letter bomb sent to Jean-Claude Trichet, president of the European Central Bank has been discovered in the ECB mail room. An Italian anarchist group is suspected of sending it.
History will remember Chairman Greenspan
By reacting forcefully from 2001 onwards, Alan Greenspan prevented the Federal Reserve from making a third big blunder and set the stage for the current turnaround, this article in The Business Times says. "The Fed can never deliver the economy into…
CentralBankNet Monday Special Feature
To be published on Tuesday 16 December, the new edition of The Financial Regulator includes an interview with Jaime Caruana, governor of the Bank of Spain and chairman of the Basel Committee on Banking Supervision. CentralBankNet presents an exclusive…
Identity of Kenyan money is puzzling
Lack of standard currency design and frequent changes make it easy to fake Kenya's notes and coins, says this article in the Daily Nation, and the recent launch of new currency denominations by President Kibaki further complicates the real identity of…
IMF takes aim at small offshore centres
After three years examining offshore centres, the International Monetary Fund has decided to focus on smaller offshore centres which don't meet international standards. CentralBankNet here gives a sneak preview of the report in the latest edition of The…
Bank of England maintains interest rates at 3.75%
The Bank of England's Monetary Policy Committee voted to maintain the Bank's repo rate at 3.75% on 4 December. The minutes of the meeting will be published at 9.30am on Wednesday 17 December.
Should BOT be a watchdog?
This article published in The Nation, Thailand, asks whether a country's central bank should be involved with banking supervision. It looks at the moves to separate the supervision function from the central bank in countries such as Canada and…
Hans Eichel Interview - 'Spirit' of Pact observed
In an interview published by Welt am Sonntag, German Finance Minister Hans Eichel said Germany has "observed the letter and spirit of the Stability Pact". He commented that further measures to reign in the budget deficit would have been wrong and…
Slimming down the Bank of Spain
SPECIAL FEATURE - Like all the central banks of the Eurosystem, the Bank of Spain is grappling with the implications of its status as one central bank within the larger federal. CentralBankNet reports from Madrid on how the restructuring is being carried…
BSP printing plant: More than just about money
This article in the Philippine Daily Inquirerlooks at the Bangko Sentral ng Pilipinas (BSP) bank note printing operations. The BSP owns the printing, minting and refining facility it calls the Security Plant Complex (SPC), an imposing structure…
Central bankers: Smarter or better informed?
"I have always admired the unique role of central bankers. As we reflect from time to time upon reincarnation as a possible next step, I lean towards that option", writes OECD secretary-general, Donald J. Johnston in this article published by the OECD…
ECB new ruling on central bank capital
CentralBankNet investigates a new ruling by the ECB with wide implications for all the central banks of the euro area. The present situation, under which the national central banks are in effect national investment funds, is uncomfortable. If the ECB…
Destructive Ambiguity
The Hong Kong dollar was pegged twenty years ago in October 1983. HKMA Chief Joseph Yam said he was going to "hit them where it hurts", earning himself a short-term action-man nickname of "Yambo". This article from webb-site.com takes aim at what it…
CentralBankNet on inflation targeting
SPECIAL FEATURE - Addressing a recent St Louis Fed conference, Fed Governor Ben Bernanke got straight to the point. He began his speech by asking: "Should the Federal Reserve announce a quantitative inflation objective". Below is CentralBanknet's guide…
Can UK's 'economic luck' last'?
Mervyn King described the UK's "non-inflationary consistently expansionary" economic performance since sterling's eviction from the exchange rate mechanism as "nice" earlier this month. Can the "nice" performance last, an article in the Financial Times…
A vision of stability within the Basel accord
In this article, first published by the Financial Times, Bank of Spain governor Jaime Caruana says the new Basel accord offers us the chance significantly to improve financial stability. In a few years' time, the benefits of Basel II will have become so…
A mangled message from the Federal Reserve
The Federal Reserve's FOMC committee meets on Tuesday 28 October to decide interest rates. The accompanying statement with their decision, this article in the Financial Times says, is now so central to markets' interpretation of the Fed's intentions that…
How will Trichet speak?
SPECIAL FEATURE - In a little over a week, as president of the European Central Bank, it will be up to Jean-Claude Trichet to explain European Central Bank policy. There are clear signs that he plans to change the way the ECB presents policy. Not only…
CPA Briefs on Iraqi Currency Exchange
Saddam-free dinars have hit the streets in Iraq. How has this been achieved? This week's CentralBankNet Monday Special Feature gives a fascinating glimpse of the immense logistical challenges faced by the authorities in Iraq. The Central Bank of Iraq has…