Central Bank Credibility

In their book This Time is Different: Eight Centuries of Financial Folly, Ken Rogoff and Carmen Reinhart warn readers that advances in central bank design and greater independence does not guarantee price stability. Indeed, they write that “quiet periods” of low inflation do not last indefinitely. And yet, by historical standards, inflation-sensitive long-term interest rates [...]

continue reading
Published May 16, 2012 | No comments (0)

Move the Financial Stability Board’s Secretariat to Asia

On the face of it, the financial crisis of 2007-08 has helped rebalance the governance of global financial authorities, partially correcting the prior underrepresentation of emerging economies and of Asia in particular. From November 2008 to April 2009, the G7/G8 was superseded by the G20, the Financial Stability Board (FSB) was empowered and enlarged to [...]

continue reading
Published May 16, 2012 | No comments (0)

Ongoing European policy shift?

Having only recently listened to a substantial number of academics and influential policy makers, the impression is gaining momentum that more focus is about to be set (verbally) on economic growth – not only on fiscal consolidation. Most public decision-makers are, of course, more cautious on this issue. But obviously, the French president-elect has a [...]

continue reading
Published May 16, 2012 | No comments (0)
Older Posts »