Daily Archives: April 2, 2012

Claire Jones

As Robin Harding writes here, Bank of Japan governor Masaaki Shirakawa’s speech on the problems of aggressive monetary easing may not have been totally comfortable for his hosts at the Federal Reserve.

Mr Shirakawa was not alone. In comments released today from the same Fed event, Jaime Caruana, head of the influential Bank for International Settlements,  also warns on the dangers of keeping monetary policy too loose for too long.

More uncomfortably for the Fed, the BIS general manager signals that he thinks the major central banks have strayed far beyond the bounds of monetary policy and into the domain of fiscal policy. Read more

Ralph Atkins

Just because big announcements are unlikely does not mean this week’s interest rate setting meeting will be comfortable for the European Central Bank. As a service to Money Supply readers, here is a guide to what will be worrying the ECB’s 23 governing council members when they gather in Frankfurt on Wednesday.

Eurozone stability is not quite as secure as it seemed a month ago, just after the second of the ECB’s three year longer-term refinancing operations, which brought the total amount injected into the eurozone financial system to more than €1trn. Spain has challenged the effectiveness of the region’s new “fiscal compact” — seen by Mario Draghi, ECB president, as essential to restoring the eurozone’s credibility. Read more