Inflation targeting
IMF mission calls for ‘urgent’ action on Serbian economy
Fact-finding mission calls on government to restore fiscal credibility and support growth; says steps need to be taken to strengthen National Bank of Serbia’s autonomy
IMF paper analyses how commodity prices impact inflation
Working paper investigates how international commodity prices affect domestic inflation; finds governance and autonomy are central bank’s biggest tools to combat shocks
The puzzle of monetary policy
The centrepiece of macroeconomic management, inflation targeting by central banks, remains virtually unchallenged despite the crisis of the past five years. This needs to change, argues John Gieve
Where the BIS falls short
Robert Pringle compares the analysis and policy recommendations offered by the BIS in its latest annual report with those in his new book, The Money Trap
Keeping sight of the real inflation target
The appropriate construction of CPI indexes is vital to maintain public confidence in inflation targets. Jill Leyland points out issues in current index construction
Some CPI indexes inappropriate for inflation targeting, says Leyland
Royal Statistical Society vice-president Jill Leyland assesses difficulties in constructing accurate inflation indexes; says consumer price indexes will “never be far from controversy”
Robert Pringle’s Viewpoint: Restoring trust in finance
The financial crisis and numerous scandals have shattered confidence in banks and financial markets. What can central bankers do to restore trust in the financial system?
CNB paper shows power of inflation targeting
Czech National Bank working paper shows inflation targeting can lead central banks to offset government spending shocks; can also have disciplinary effect on fiscal policy
IMF paper highlights risks of higher inflation targets
Researchers assess the effects of increasing inflation targets; argue this can help prevent problems of a zero lower bound, but the overall impact on welfare is negative
Brazil and South Korea cut rates amid economic gloom
Central Bank of Brazil and Bank of Korea cut interest rates due to poor economic outlook and declines in indicators; Brazil marks eighth consecutive reduction while Korea makes first cut since 2009
New Zealand’s McDermott emphasises inflation targeting success
Reserve Bank of New Zealand assistant governor highlights success of central bank’s inflation targeting policy; says there is still room for improvement
Robert Pringle's Viewpoint: Fatal flaws in inflation targeting
Central bankers face a ‘lose-lose situation’ by accepting dual price and financial stability mandates when even their ability to achieve price stability via inflation targeting is in question
Bank of Canada paper compares price-level and inflation targets
Working paper considers effect of global commodity price shocks on choice of monetary policy regime; finds important impact of energy supply and demand
Japanese prime minister nominates new rate-setters
Two new board members put forward by Yoshihiko Noda; nominations need approval by both houses of the Japanese parliament
Shirakawa discusses BoJ monetary policy
Governor of Bank of Japan considers central bank’s monetary policy stance and explains the rationale behind recent policy decisions
Sarb publishes Monetary Policy Review
South African Reserve Bank Monetary Policy Review notes continuing global uncertainty; central bank decides to maintain repurchase rate of 5.5%
Serbian vice-governor considers inflation outlook
Bojan Marković, presents the National Bank of Serbia’s May inflation report; inflation expected to return to target despite uncertainty
IMF calls for looser monetary policy in the UK
Latest Article IV review of UK urges further QE or a cut to policy rate; Fund calls on Bank of England to act to boost growth
Sarb paper examines inflation annoucement influence on currency market
South African Reserve Bank working paper examines link between inflation announcements and short-term currency fluctuations in South Africa
Central banks are now ‘market makers of last resort’, says Fischer
Bank of Israel governor Stanley Fischer says central bankers have learnt a lot about the liquidity trap and expansionary monetary policy since the advent of the global financial crisis; explains thinking behind Israel’s rate rise in July 2009
Riksbank presents monetary policy report to Swedish parliament
Swedish central bank outlines monetary policy decisions from 2011; reveals international pressures hampered growth
Norway's Olsen discusses factors that shape interest rate policy
Norges Bank governor advocates interest rate policy that considers more than just the inflation target; says impact on output also relevant when setting rates
Central Bank of Brazil research investigates control amid rising inflation trends
Brazilian central bank publishes research showing the ability to simultaneously stabilise the inflation rate and the output gap reduces as inflation trend rises
BoJ to continue easing until it hits 1% inflation goal
The Bank of Japan says it plans to continue "powerful easing" until a 1% inflation target is in sight but rejects motion to increase its asset purchase programme by another 5 trillion yen