The suspension of governor Lamido Sanusi from the helm of the Central Bank of Nigeria (CBN) is important, and not just for for analysts of future Nigerian monetary and exchange policies. Sanusi’s case…
Reserve Bank Governor Glenn Stevens has again weighed in on the value of the Australian dollar, telling a group of economists the bank is open to the idea of intervening to bring its value down. With the…
There continues to be a great debate around Australia’s fiscal position. Yet, budget deficits are, in fact, a natural outcome of the business cycle. In a policy brief, co-authored by myself and colleagues…
Many critics of the coalition government’s “Plan A” argue that it should deviate from deficit reduction plans to instead stimulate growth via additional infrastructure spending. Recent advocates of this…
The announcement by the US Federal Reserve Bank that it would link its monetary policy to the achievement of specific economic targets beyond inflation is a new development in its approach to policy. In…
In an attempt to bolster the economy, the Federal Reserve announced a fresh round of bond purchases to replace Operation Twist, the stimulus program that is set to expire this month. It will spend $US45…
Monetary policy must be forward looking. It has limited ability to affect the here and now of the economy, as this has largely already been determined - by employment decisions, investment decisions and…
CAMA’s Shadow Board, which gives its views ahead of the decision by the Reserve Bank of Australia, continues to support the current setting of the cash rate at 3.5%. But economists are seeing a greater…
As foreign central banks continue to park their money in our triple-A rated bonds, the Australian dollar continues its inevitable ascent. The dollar traded as high as US106.03¢ after the RBA left the interest…
The pressure is on Australia’s major banks to pass on the Reserve Bank of Australia’s 50 basis point cut in full to Australian households and businesses. In a surprise move, the RBA slashed Australia’s…
The head of the Australian Workers Union chief Paul Howes has called on the Federal government to urgently review the Charter of the Reserve Bank of Australia, suggesting its current policy setting is…
These days, most economic commentators in Australia sing from the same hymn sheet when it comes to discussing our economic prospects: while the ongoing gloom in the US and the outright deterioration in…
For European banks threatened by a looming credit squeeze, the US Federal Reserve’s move to cut the cost of obtaining US dollars rescue hasn’t come a moment too soon. The Fed’s decision to engage in quantitative…
Global share markets were faltering even before the decision by Standard & Poor’s to downgrade the US government’s debt. The slump in share markets over the past week reflects a weaker outlook for…
While “deficit fetishism” is unsurprising when championed by Liberal politicians or their counterparts in the centre-unity faction of the Labor Party, it is increasingly advocated by those positioned at…
The International Monetary Fund executive board will complete interviews of the two leading candidates to replace Dominique Strauss-Kahn this week, with the aim of picking a new managing director by June…
Speculation last week that Paul Keating and Peter Costello could nominate for the top job at the International Monetary Fund (IMF) was a mere distraction, but the hoopla did manage to highlight a crucial…
Late last month, Ben Bernanke held the first ever press conference by a chairman of the US Federal Reserve Bank. For more than an hour, he took questions about the Federal Open Market Committee’s decision…
Distinguished Professor and Derek Schrier and Cecily Cameron Chair in Development Economics, School of Economics and Business Sciences, University of the Witwatersrand