Opinion
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…
Interview with the Governor of the Bank of Korea
In an interview published by The Chosun Ilbo, Governor Park Seung of the Bank of Korea spoke at the central bank building about the problem with rising housing prices. "It is difficult to solve the property speculation issue fundamentally without drastic…
International policymakers' comments on Trichet
Following Jean-Claude Trichet's formal appointment as the President of the European Central Bank, this article published by Reuters provides a selection of comments from international policymakers about Trichet. European Commission President Romano Prodi…
Trichet must be decisive on ECB policies
This article in the Financial times says that Jean-Claude Trichet should make tackling the ECB's lack of responsiveness and poor communication his priorities. The test, it says, will be whether Mr Trichet can persuade his colleagues to cut short-term…
Is inflation targeting yesterday's success story?
The problem now for the Bank of England, this article in The Independent suggests, is that the achievement of low and stable inflation may have become a little too easy. Inflation targeting may work very well in puncturing a bubble of inflationary…
Interview with Iraq's central bank governor
In an interview on Friday 10 October, published by Reuters, Iraq's central bank governor Sinan al-Shibibi said that donors should not be deterred from giving money by differences between the US and World Bank on how much aid Iraq can put to good use. …
Interview with central bank governor, Congo DR
Interview with the governor of the Central Bank of the Democratic Republic of Congo, Jean-Claude Masangu Mulongo. In the interview, published by IRIN News, the Governor talks about the introduction of the new 10- and 20-Congolese franc bank notes, and…
Boardroom split at the Reserve Bank
SPECIAL FEATURE - Until recently, the question of whether banks or other firms should combine the role of chairman and CEO was one on which well-intentioned people would differ. UK corporate governance codes favour a split. US companies tended to combine…
Interview with IMF Chief Economist Raghuram Rajan
The new Chief Economist at the International Monetary Fund Raghuram Rajan said in an interview, published by Business Week Online, that the IMF is extremely strong in its views on exchange rates, monetary policy, and fiscal policy and that "I suspect my…
Should central banks regulate credit card schemes?
Yes, according to Australia's federal court, which has just ruled that Visa and MasterCard should be subject to regulation by the Reserve Bank of Australia. In this weeks Monday Special CentralBankNet examines the impact of the case.
Interview with BIS General Manager Malcolm Knight
In an interview conducted on 25 September, Bank for International Settlements general manager Malcolm Knight said "It would be likely that Basel II would assign India a sovereign risk weight of 50 percent instead of the 100 percent it receives under the…
Central banks: What to achieve & how to get there
This article in the Independent newspaper says that underneath it all, central bankers are ordinary folk, and they, too, face difficulties in achieving what they want. At the Bank of England, the Monetary Policy Committee's life has been relatively short…
Outgoing Duisenberg gets the hump in Dubai
With the IMF and World Bank annual meetings at an end, this article from Bloomberg News reflects on the Dubai gathering's less formal proceedings. Caviar, foie gras, lobster and belly-dancing were on the menu while Bank of Italy governor Antonio Fazio…
Monetary Options for Postwar Iraq
On October 15th, Iraq will issue a new unified dinar under the auspices of its new, "independent" central bank. This article published by the Cato Institute, "Monetary Options for Postwar Iraq" says the move will be a half-baked affair, at best, and is…
Bank of Spain's Jaime Caruana on Basel II
In an interview with reuters, the Governor of the Bank of Spain, Jaime Caruana, said there is a unanimous understanding of the need for Basel II. .It is a completely new approach and in that sense you could say that it is a kind of revolution. He…
Why inflation targeting is an inexact science
An article in the Independent says that in the past stronger-than-expected growth might have been a good reason to raise interest rates but if, today, stronger than expected growth results from the same process as lower-than-expected inflation, all our…
Trichet's law
This article in the Financial Times accuses Jean-Claude Trichet of portraying himself on Thursday as less willing to understand the problems of the European economy than Wim Duisenberg, the current ECB president. His unfortunate choice of words was…
Basel's best bet is to keep it simple
Much progress has been made in constructing a regulatory capital framework that can benefit both the industry and its regulators. At this late stage, this article in the Financial Times says, careful revision is necessary to guarantee that the five-year…
Slaves to the mechanical rules of central banking
Stephen Cecchetti, in an article in the Financial Times, delves into history and says it is difficult to justify the unstated extension of Alan Greenspan's argument, as made at the recent Jackson Hole conference, from flexibility in the execution of…
Interview with Bank of Thailand Deputy Governor
In an interview Bank of Thailand Deputy Governor Thirachai Phuvanat Naranubala said that since the beginning of the year the BoT has allowed the baht to be flexible to some extent "but we want to make sure that movements are in line with the real trend".
Stiglitz: Little to gain & much to lose from euro
Joseph Stiglitz says the euro has failed its first test: Swedes may vote no to the single currency - and with good reason. With a majority of Swedes likely to vote no in the upcoming referendum on the euro Stiglitz suggests in an article in the UK's…