Inflation
Monetary misperceptions in a New Keynesian model
Centre for Economic Policy Research paper finds that the difference between primary and revised monetary figures captures misperceptions, which are key
Bank of Japan – Minutes (25 and 26 Jan)
Minutes of the Japanese central bank’s most recent policy meeting show members felt December measures had heightened effectiveness of policy easing, cabinet representatives emphasises achieving positive inflation as soon as possible
Harare will keep multi-currency system till 2012: minister
Economic planning minister says the country will continue using the rand, dollar and pula among others for the time being
Bank of Canada Review (Winter)
Winter edition of bulletin contains articles on inflation persistence, capital flows in emerging markets and the accessibility of banknotes
Real-estate poses threat to recovery: Minneapolis Fed’s Kocherlakota
Minneapolis Fed president Narayana Kocherlakota echoes recent comments from other regional Fed leaders in his first speech, says recovery will be slow
Fed’s Hoenig flags independence threat from fiscal burden
Sole dissenter points to German hyperinflation and Fed’s kowtowing to Congress over Vietnam and Great Society as signs central bank could act on political pressure
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
New rate-setters named in Poland
Poland’s president names three new members to the monetary policy council, newcomer says country has scant hope of meeting Maastricht criteria for euro adoption
Spending and loose monetary policy cause inflation
CEPR looks for an explanation for UK inflation in the 1970s
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
China surprises with second reserve requirement hike
People’s Bank of China ups its reserve requirement ratio by 0.5 percentage points to drain excess liquidity from system
Triple A rating “ours to lose”: King
Bank of England’s Mervyn King says downgrade unlikely given Britain’s strong track record and maturity of government bonds
Inflation targeting the best available option: RBNZ’s Bollard
Reserve Bank of New Zealand governor Alan Bollard says although the method has not always ensured stability, it is better than the alternatives
Real exchange rate matters: SARB’s Mminele
South African Reserve Bank’s Daniel Mminele on the role of exchange rates in monetary policy
Argentina surprises with new governor
Mercedes Marcó del Pont, the pro-government head of a state bank, is made governor of the Argentine central bank, commentators and markets in shock
Bank holds rates, halts asset purchases
Bank’s rate-setters stand pat, pointing to a clash of pressures between inflation and anaemic growth; ex-MPC members concur
Romania makes half-point cut
Romanian central bank lowers cost of borrowing despite above-target inflation
CEE more vulnerable to exchange-rate shocks
National Bank of Hungary looks at the transmission of monetary policy in Central and Eastern Europe
China must look to interest rates: OECD
Paris-based organisation calls on Chinese central bank to move interest rates rather than putting liquidity controls in place
No hikes if inflation stays below 8.5%: RBI
Indian central bank’s governor and deputy governors say hikes could dampen growth, key rates to stay flat unless inflation exceeds 8.5%
Turkey’s inflation forecast unchanged despite hike
The Central Bank of Turkey’s quarterly Inflation Report shows inflation hike end-2009 temporary
RBI hikes reserve ratio
Reserve Bank of India bids to counter risk that high food inflation could spark broader price pressures
RBI hints at tightening ahead of policy meet
Reserve Bank of India flags inflation as “major concern” on eve of rate vote