Inflation

BoJ's Muto says price range is not target

Bank of Japan deputy governor Toshiro Muto said on Wednesday 15 March that although the BoJ has a price stability range of between 0-2 percent rises in consumer prices, this does not mean the central bank will keep rates at zero until inflation tops that…

Comment: Yellen's 'long-run' inflation target

San Francisco Fed president, Janet Yellen, who has emerged as one of Ben Bernanke's strongest allies in the inflation targeting debate at the Fed, provided further insights into what she regards as the optimal design of such a framework in a speech on…

BoJ minutes show two opposed target

Two of the Bank of Japan's nine board members in January opposed disclosing the bank's target for stable prices, according to minutes of the board's Jan. 19-20 policy meeting released in Tokyo.

The evolving inflation process: an overview

This BIS Working Paper reviews analytical work carried out by central banks that participated in the Autumn Meeting of Central Bank Economists on "The evolving inflation process" which the BIS hosted on 28-29 October 2005.

Comment: Has the ECB become more credible?

A recent New York Fed staff paper finds that market perceptions of the ECB's "inflation aversion" have improved significantly over the last six years, reflecting the idea that monetary policy has been guided by a dedication to price stability.

Interview with Minneapolis Fed's Gary Stern

In an interview with MarketWatch conducted on Friday 3 March, Minneapolis Fed president Gary Stern said he supports a formal inflation target to "lock in" current good policy practices, but he doesn't see any urgency in making changes. Stern also gave an…

Comment: The ECB's 'structural flaw'

In a lecture at the London School of Economics this week, Charles Goodhart suggested that the criticism directed towards the ECB by politicians, is the result of a "structural flaw" in the way the central bank's inflation objective was defined.

Fed's Bernanke on the benefits of price stability

In the speech 'The benefits of price stability' given on 24 February Ben Bernanke of the Federal Reserve said the Fed needs to keep inflation low to meet its other mandated goals of high employment and moderate long-term interest rates.

Fed's loss is Bernanke's gain

According to this article published Thursday 23 February, with Vice-Chairman Roger W. Ferguson Jr., a Democrat, out of the way, the new Federal Reserve chairman can now dominate the inflation debate.

Sveriges Riksbank Inflation Report, No. 1, 2006

Sweden's central bank, the Sveriges Riksbank, published its First Inflation Report for 2006 on Thursday 23 February. Speaking to the Riksdag Committee on Finance, Governor Stefan Ingves said the Riksbank envisages inflation rising as capacity utilisation…

St Louis Fed's Poole on inflation targeting

In the speech 'Inflation targeting' given on 16 February William Poole of the Federal Reserve Bank of St. Louis said an explicit inflation target would help the Federal Reserve do a better job of anchoring expectations and ensuring low and stable prices.

Fed chief rules out mandate change

Ben Bernanke said he doesn't want Congress to change the Federal Reserve's mandate that it pay attention to both price stability and maximum employment or economic growth.

Bank of England Inflation Report, February 2006

The Bank of England published its February 2006 Inflation Report on 15 February. Governor Mervyn King told a press conference the outlook for the UK economy is "benign" and the slowing of consumer spending growth that began in the middle of 2004 "appears…

Fed nominees emphasise inflation control

The two nominees for the Federal Reserve Board, Randall S. Kroszner and Kevin M. Warsh, said on Tuesday 14 February, in testimony to the Senate Banking Committee that controlling inflation was the key to maintaining economic growth in the United States.

Why the Bank of Japan should just shut up

According to this article published on Monday 13 February, until the consumer price index and other inflation measures turn positive and stay there for six months or even longer, Bank of Japan officials should keep their heads down and their mouths…

Albania to adopt inflation target

In this speech delivered in Vienna on January 18, 2006 the Governor of the Bank of Albania, Ardian Fullani, reiterates the central bank's intension to switch to fully-fledged inflation targeting.

BoJ - inflation to accelerate in Q1

The Bank of Japan's (BoJ) nine-member board ended Thursday's monetary policy meeting by keeping policy unchanged. BoJ governor, Toshihiko Fukui, said he expected inflation to accelerate in first quarter of 2006.

Comment: BoJ and inflation targeting

As the Bank of Japan's "quantitative easing" policy nears its end, the question of whether the central bank may soon set an explicit inflation target is being hotly debated. Although the BoJ is still resisting the adopting the framework, the tide may…

Australian rates unchanged

The Reserve Bank of Australia yesterday left the overnight cash rate at 5.5%, following its first interest rate meeting of the year. Australia is in the midst of its most stable economic period in three decades, with only one change in monetary policy in…

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