Monetary policy

In its newly-published Emerging Europe (EE) 2013 Outlook and Sovereign Review, Fitch Ratings says that positive rating actions in Emerging Europe sovereigns outweighed negative actions in 2012.

But what is safe? Is it the AAA or AA rating provided by rating agencies such as S&P and Moody’s? Does “safe” equal goodwill bonds issued by sovereign countries such as France, Japan, the United Kingdom or the United States? Perhaps…

The ECB announced its second long-term refinancing operation (LTRO) on Wednesday. The auction led to 800 banks tapping the ECB for EUR 530bn in three year funding at 1%.

Beyond the traditional measures and in a context of systemic risk, we wonder about what specifically should be the strategic tasks of a central bank

Whilst several experts estimate the that it will still be about ten years before the status of the yuan changes to that of a reserve currency, the exchange agreement between Japan and China which replaces the dollar with the yen or the yuan, for bilateral trade, could accelerate this change....