Daily Archives: September 13, 2011

Ralph Atkins Weidmann keeps up the pressure

September 13, 2011 7:39 pm by Ralph Atkins

Jürgen Stark will resign as European Central Bank executive board member. But his compatriot, Jens Weidmann, Bundesbank president, has signalled he will keep up his fight against the ECB’s government bond buying programme. Eurozone central banks were already carrying considerable risks on their balance sheets. “I believe strongly that from now on these should be reduced again and in no way expanded,” he said in a speech in Cologne on Tuesday evening.

Mr Weidmann also had a strong message for German politicians. The time was fast approaching a fundamental choice would have to be made about the future of the eurozone.

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Posted in European Central Bank |

Chris Giles Is it monetary or fiscal policy?

September 13, 2011 2:46 pm by Chris Giles

This is a question that is exercising central banks and politicians around the world when it comes to quantitative easing.

Creating money is clearly a monetary operation  - only a central bank has a monopoly right to issue base money. What you do with any money created is much more of a moot point as Adam Posen argues in a speech today.

One line to draw is on taking risks. As Mr Posen states, the Bank of England has drawn its line here:

“Getting into credit risk assessment through buying specific assets both is not a strength of the Bank, and would expose the Bank excessively to the perception of favoring specific interests”.

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Posted in Central banks |

Chris Giles Words or deeds at the MPC?

September 13, 2011 2:27 pm by Chris Giles

Adam Posen’s speech today – in which he argues for more quantitative easing and new forms of QE – raises two important issues which I will cover in two posts. Here I will discuss words and deeds at the Bank of England’s Monetary Policy Committee. My second post will cover Mr Posen’s calls for more exotic forms of QE.

A big problem the MPC is causing for those seeking to understand UK monetary policy is that confusion reigns about what it would take to trigger QE2 in Britain. And as so often recently, this is because the Bank of England appears to find evidence to justify policy decisions rather than allow evidence to guide policy.

Continue reading: “Words or deeds at the MPC?”

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Posted in Bank of England |

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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

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