The ECB goes for indexation

Jean-Claude Trichet, European Central Bank president, has just announced the next – and last – offer of unlimited 12-month liquidity will be at an interest rate linked to future changes in the main policy rate. I blogged on the attractiveness of such a move yesterday. Mr Trichet insisted the move sent no signals about a future tightening of monetary policy. More on ft.com later…

Related posts:

(1) The separation principle (Dec 4): does the ECB’s move towards the exit signal a return to inflation-targeted monetary policy?

(2) Indexation, explained (Dec 3): how it will work

(3) An ECB puzzle (Nov 6): leaving rates unchanged on 12-month loans could be seen as loosening, because rates are expected to rise in that period; raising rates, however, could be seen as tightening. Indexation would be a smart move

(4) Other posts on the ECB

Money Supply

Central bank blog

About this blog Blog guide
Opinions on market-moving economics and central banks around the world.


To comment, please register for free with FT.com. Read our policy on comments and include your name when submitting a comment.

All posts are published in UK time.

Contact claire.jones@ft.com about the Money Supply blog.

See the full list of FT blogs.

Editor’s choice

David Daokui Li

My lessons from life as a Chinese central banker

Euro in crisis

Fears of a Greek exit mount

The Money Supply team

Chris Giles Chris Giles has been the economics editor of the Financial Times since 2004. Based in London, he writes about international economic trends and the British economy. Before reporting economics for the Financial Times, he wrote editorials for the paper, reported for the BBC, worked as a regulator of the broadcasting industry and undertook research for the Institute for Fiscal Studies. RSS

Ralph Atkins, Frankfurt bureau chief, has been writing about European economics and politics for the Financial Times for more than 20 years following an economics degree from Cambridge. He has been watching the European Central Bank and eurozone economies since 2004. He has previously worked in London, Bonn, Berlin, Jerusalem and Brussels. RSS

Robin Harding is the FT's US economics editor, based in Washington. Prior to this, he was based in Tokyo, covering the Bank of Japan and Japan's technology sector, and in London as an economics leader writer. Robin studied economics at Cambridge and has a masters in economics from Hitotsubashi University, where he was a Monbusho scholar. Before joining the FT, Robin worked in asset management and banking. RSS

Claire Jones is Money Supply economics team writer, based in London. Before joining the Financial Times, she was the editor of the Central Banking journal and CentralBanking.com. Claire studied philosophy and economics at the London School of Economics. RSS

James Politi is US economics and trade correspondent for the Financial Times, based in Washington DC. He joined the Washington bureau in January 2008 following four and a half years as US deals correspondent covering M&A and private equity. James Politi joined the FT in London in 2000 with an MSc at the London School of Economics, and undergraduate degrees from Georgetown University and the University of Florence. RSS

Archive

« Nov Jan »December 2009
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031