News
Market Watch | Talk of Fed wind down grows louder
The drumbeat to reduce the rate of bond purchases by the Federal Reserve grew louder Thursday, with a dovish voice joining the group.
Bloomberg | Central Bankers Prisoner of Policy Guidance: Cutting Research
Policy makers can become “constrained” when they inform investors about the likely direction of interest rates, according to economists Nikola Mirkov of the University of St. Gallen and Norges Bank’s Gisle James Natvik. The topic is a hot issue at the moment as central bankers, including Federal Reserve Chairman Ben S. Bernanke, embrace so-called forward guidance to enhance the power of interest rates in providing stimulus.
Blogs
Economist | Only the ECB can improve bank credit supply
As the recession in the Eurozone moves into its sixth quarter and fiscal austerity continues, the importance of reviving credit supply to the private sector in order to stimulate output growth has become all the more apparent. In the European context boosting credit supply to the private sector requires a significant recovery in bank lending, given the relatively small size of the continent’s corporate bond markets compared to those in the United States.
WSJ | Loose Central Bank Policies Looking Increasingly Dangerous, BIS Official Warns
It’s a refrain that is being heard more and more often, especially from central bankers: the world is expecting too much of them.
