Deflation
Japan's support for inflation targeting grows
Minutes of the Bank of Japan's April meeting published on Monday 16 June showed that at least two of the BoJ's nine policy board members favour the introduction of a "reference rate of inflation" to halt deflation, according to a report in the Financial…
Rate commitment could hit Fed credibility-Broaddus
Richmond Fed president Alfred Broaddus has warned the Federal Reserve may lose credibility if a commitment to hold interest rates down to fight deflation becomes difficult to maintain due to an unexpected shift in the economy's fortunes, according to…
Duisenberg soldiers on
No central bank takes kindly to politicians tampering with their business, and the ECB is no exception. In advance of its long-awaited rate cut this week, the ECB was told by Belgian finance minister Didier Reynders to be more active: "It is about time…
Duisenberg soldiers on
No central bank takes kindly to politicians tampering with their business, and the ECB is no exception. In advance of its long-awaited rate cut this week, the ECB was told by Belgian finance minister Didier Reynders to be more active: "It is about time…
ECB's Tumpel-Gugerell sees no deflation risk
The ECB's newest council member Gertrude Tumpel-Gugerell has said she sees neither symptoms of deflation nor the risk of deflation, reports Frankfurther Allgemeine Zeitung.
"Myths surrounding a deflationary spiral"
An article published in the Financial Times argues that although some commentators think that the world economy is about to be devoured by deflation, in fact UK and Eurozone rates are currently at 3 and 1.9 per cent. Jacek Rostowski says that those…
IMF's Rogoff – dollar decline a good thing
Ken Rogoff, the iMF's chief economist, welcomed the fall in the dollar on Thursday 29 May, saying it is good for the world economy but may pose problems for Germany with deflation, according to a Reuters report.
'Mr Yen' suggests new era of deflation
Frmer vice-finance minister of Japan, Eisuke Sakakibara, who is known as Mr Yen, has said he thinks Japan has been unfairly blamed for failing to tackle deflation with conventional monetary policy, according to the Financial Times. He also suggested the…
Bank of Japan head pledges to fight deflation
Toshihiko Fukui said at the weekend the central bank is ready to act on deflation, Bloomberg reports. He also said that he sensed most participants of the G7 meeting showed strong interest as to what policy stance he will be taking as governor of the BOJ.
Japan warns on deflation at G7 meeting in Paris
With Japan continuing to suffer the effects of deflation, finance minister Shiokawa has warned that increased threats of war may make the prospect of deflation more serious for the world.
Minutes of Japan's Monetary Policy Meeting
MINUTES - Minutes of the Bank of Japan's Monetary Policy Meeting on 21 and 22 January 2003, released 19 February. One member pointed out that inflation targeting had never been adopted for the purpose of overcoming deflation by any central bank overseas,…
Koizumi puts off BOJ chief choice
The government has postponed the selection of the next Bank of Japan governor, fuelling speculation the prime minister has not found a ``deflation fighter'' who can rescue the economy.
Ex-BOJ Matsushima: need broad, combined policy
ARTICLE - Japan will succeed in ridding its economy of deflation only when the government and the Bank of Japan implement a coordinated, broad-based policy, according to an ex-BOJ senior official.
Kikuo Iwata: BOJ needs inflation target
INTERVIEW - The Bank of Japan should set a mild inflation target to defeat deflation, says Kikuo Iwata, a Gakushuin University professor, who believes that unless deflation is stopped, there can be no business revival nor fiscal reform.
The next BOJ governor
ARTICLE - The article sets out some of the qualities the next governor of the Bank of Japan must have and says he should be selected with an eye to the future. But the door should be left open to all qualified persons, including ex-bureaucrats as well as…
The folly of inflation targets
ARTICLE - This article says that the Bank of Japan should explain what it is intending to do to end deflation and that this will be the first step in defending its threatened independence.
Shiokawa puts deflation on center stage
Deflation is an issue for the entire government to tackle, Japan's Finance Minister Masajuro Shiokawa said Tuesday, reversing his earlier stance that the price declines of the last four years are the responsibility of the central bank.
Broaddus on the economic outlook for 2003
SPEECH - In the speech 'The Economic Outlook for 2003' Alfred Broaddus of the Federal Reserve Bank of Richmond said he thought the Federal Reserve was unlikely to "run out of ammunition" as substantial levels of liquidity could still be introduced to the…
Pace of Japanese deflation steadies
Japanese goods fell on average by 2 per cent in 2002, as the country's three-year deflation run continues.
ECB must act now
ARTICLE - The article says the ECB must continue to ease interest rates soon to further boost the flagging eurozone economy as the possibility of deflation in Germany is a greater danger than inflation.
Takenaka says govt expectations of BOJ 'very high'
Japan's Financial Services and Economics Minister Heizo Takenaka said on Tuesday that the government is working hard to overcome deflation and its expectations for the Bank of Japan's policies are "very high".
Minutes show Fed worried over deflation
The Federal Reserve cut interest rates last month as extra insurance against deflation and the chance that the economy's stumble this summer could become something worse, according to Fed meeting minutes released on Thursday.
Stevens on Inflation, Deflation and All That
SPEECH - In the speech 'Inflation, Deflation and All That' Glenn Stevens of the Reserve Bank of Australia said the word 'deflation' carries too much emotive baggage and a 'deflation trap' would pose a bigger concern. Australia would be one of the last…
Issing on the euro after four years and deflation
SPEECH - In the speech 'The euro after four years: is there a risk of deflation?' Otmar Issing of the ECB said stagflation was a bigger threat to the euro zone than deflation. This he said, "deserves much more attention than the risk of deflation". In a…