Inflation targeting
Subbarao moots Tobin tax to curb capital inflows
Reserve Bank of India governor Duvvuri Subbarao says all options on the table as it attempts to act on investment influx
Shirakawa slams inflation-targeting 'fixation'
Bank of Japan governor blames single-minded use of inflation targets for the growth of credit bubbles, says price levels alone do not show health of the economy
British bonds rest on “a bed of nitroglycerine”: Pimco chief
Head of biggest bond fund sees investors penalising gilts as British attachment to quantitative easing stirs worry that government seeks to inflate debt away
Fed’s Kohn attacks higher inflation targets
Federal Reserve vice chairman also dismissive of price-level targeting; admits central bankers were “a little complacent” pre-crisis
BoJ makes small concessions to government
Minutes from Bank of Japan’s February policy meeting show divide between policymakers on strength of economy, analysts say central stance unchanged
The bitter divide on inflation targeting
Economists are split over a recent suggestion that central banks should raise their inflation targets to allow more room for cuts in crises
ECB’s Stark contests IMF paper
Jürgen Stark argues that an inflation target at the 4% level would do more harm than good
ECB: current rates remain appropriate
The latest information from the European Central Bank confirms that the economic recovery in the euro area is on track but is likely to remain uneven
UK public’s price expectations moderately rise
GfK NOP survey on inflation attitudes from the Bank of England shows expectations remain stable
RBA’s Lowe latest to dismiss inflation target hikes
Reserve Bank of Australia assistant governor Philip Lowe says IMF paper’s suggestion of raising inflation targets not sensible, says higher targets would damage supply side
BoE’s Barker on the future of policymaking
Kate Barker draws on her nine years of service at the Bank of England to highlight some of the challenges facing policymakers
Fund economist: Lost Decade shows need for higher inflation targets
IMF economist Daniel Leigh points to evidence from Japan’s Lost Decade that shows hiking targets would have shorn output losses
Volcker lambasts higher inflation targets
Former Fed chairman Paul Volcker calls the suggestion that inflation targets should be raised to about 4% “nonsense”; points to the difficulties of the 1980s
Hildebrand, Weber condemn calls for higher inflation targets
Swiss and German central bank heads label IMF chief economist’s argument “seriously flawed”; deem timing “highly unfortunate”
The simulation of inflation forecasting
IMF research asks how useful is a simple Phillips Curve in simulating inflation forecasting in real time in Germany, the UK, and the US?
High debt heralds new rate policy: UK shadow chancellor
George Osborne says high level of public debt will prompt reappraisal monetary policy
How the Taylor rule changed central banking for good
Kansas Fed paper shows that the rule had widespread influence and changed policymaking even when it was not adopted outright
Uganda’s Kaskende: help us prepare for reform
Bank of Uganda deputy says firms must pave way for change with new reporting standards
SA finance minister flip flops on inflation targeting
South Africa’s Pravin Gordhan says inflation-fighting approach to be “totally different” days after pledging to keep Reserve Bank’s monetary-policy mandate unchanged
Forget inflation targeting
Central banks should let markets set interest rates and let prices fluctuate in the short to medium term, argues Brendan Brown
Bank plays down inflation threat
Above-target inflation likely to soon abate, Bank of England’s governor says in letter to chancellor of the exchequer
RBIs Subbarao pillories inflation targeting
India’s governor says crisis has “diluted if not dissolved” inflation-targeting consensus; says fiscal dominance likely to remain
Inflation targets must be raised: IMF’s Blanchard
IMF economists Olivier Blanchard, Giovanni Dell’Ariccia and Paulo Mauro call for central banks to revise their price growth targets if they want to avoid crippling deflation
Ghana suited to inflation targeting: IMF paper
International Monetary Fund paper says the country does not suffer problems in credibility, which helps in the inflation targeting framework