Sir Mervyn King is not known for his fondness for international travel, preferring to send one of his two deputies – Charlie Bean and Paul Tucker – whenever possible.
The governor, however, has traditionally made an exception for the IMF/ World Bank autumn meetings. Read more
Lars Nyberg, one of the deputy governors at Sweden’s Riksbank, is a frequent critic of the eurozone authorities’ handling of the crisis. He has also been remarkably prescient.
So, what do the Riksbank’s minutes of its 6 September meeting, out today, reveal about what Mr Nyberg thinks will happen next? Read more
Courtesy of the Irish Times:
How many euro area finance ministers does it take to change a light bulb? None – there is nothing wrong with the light bulb. Read more
The Bank of England’s quarterly bulletin is usually a very dull and conservative document. This quarter, it has been more widely read for its article on the impact of quantitative easing.
It is easy to quibble with the estimates, but I am not going there. More useful is the understanding it gives of what the Bank thinks the effect of QE is on growth and inflation. That way we can gain some insight of its own assessment of the transmission mechanism. The article concludes:
If we compute the range across the different estimation methods, using the middle of the ranges of the bottom-up estimates , this would suggest that QE may have raised the level of real GDP by 1.5% to 2% and increased inflation by between 0.75 to 1.5 percentage points.
These rules of thumb are, as the QB says, very uncertain. They are also very useful. Read more