The Revolution in Monetary Policymaking Institutions

1. The past versus the present Twenty years ago and earlier most central banks in the world functioned as departments of ministries of finance. They were expected, by law, custom or both, to utilize their policy instruments to achieve a myriad of objectives like high levels of growth and employment, provision of funds to government […]

Dollar’s Rebound?

The title of a story on the first Business Page of The New York Times on Wednesday, May 7 proclaims “Signs of Stability, Even Upturn, for Dollar” and it begins “After six years of stumbling against the euro, the dollar may be showing signs of getting back on its feet.” The chart included with the […]

Don’t look now … the pegs are back

Much like Mark Twain, reports of the death of fixed exchange rates have been exaggerated. It seems each time a peg collapses, there is a clamoring that “soft pegs” are unsustainable in today’s big bad world of rapid capital movement. Pegs, it is often noted, are fragile. And yet, when we look around, there always […]

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