European Central Bank policymakers are not shy of setting out their thoughts on the future of the eurozone – but their policy prescriptions differ. As a service to Money Supply readers, here is a summary of their latest contributions:
Lorenzo Bini Smaghi, Italian executive board member, argued in Rome on Thursday that at times of crisis, decision makers had to strike a balance. Europe’s monetary union had been built on the false premise that there would never be crises and that markets would function perfectly, he argued. Neither proved correct.
Now policymakers had to make a balanced judgement. Read more
Our week ahead email will help you to track the most important events in the central banking world. To see all of our emails and alerts visit www.ft.com/nbe
The key event in next week’s calendar is the Federal Open Market Committee’s policy meeting, which Ben Bernanke announced at Jackson Hole would be a longer-than-usual two-day affair. Read more
This from the FT’s beyondbrics blog:
The Reserve Bank of India on Friday raised its repo rate – the rate at which the central bank lends to commercial banks – by 25 basis points to 8.25 per cent. The move was widely expected by economists, though some predicted a pause after weak industrial production figures earlier this week.
India’s is the first big EM central bank to buck the recent trend of monetary loosening among emerging markets in the face of a slowing global economy.
This from the Reserve Bank of India’s statement: Read more