Ignorance at the heart of the Fed

Article Abstract:

The US Federal Reserve looks set to raise interest rates in Oct 1999 due to concern about inflation, linked to higher petroleum prices. Inflation is not easy to measure, and may be overstated, though housing costs are rising and this may not be fully reflected in inflation data. Inflationary expectations may fall as a result of continued low inflation, and labor productivity could be rising, with both factors tending to ease inflationary pressure. It is difficult to forecast changes in productivity, and this means that the Federal Reserve faces uncertainty when seeking to formulate policy.

Prices, Measurement, Inflation (Finance), United States. Federal Reserve Board, United States economic conditions, Inflation (Economics)

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Fighting to put down the dragon of inflation

Article Abstract:

Ghana is seeking to reduce inflation to under 10% in 1997. Average inflation is forecast at 55% for 1996, dropping to 30% for 1997. The Bank of Ghana has used tight monetary policy to cut the level of the money supply and short-term interest rates have been raised. Godfried Kportufe Agama, Bank of Ghana's governor, would like to have value-added tax (VAT) reintroduced. He sees this as a useful way to reduce consumption and promote investment. The bank aims to encourage foreign investment so has tended not to be interventionist.

Central banks, Ghana

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France welcomes its new banking giant

Article Abstract:

Societie Generale's agreement to purchase Paribas will create the world's fourth largest bank. It will be known as SG Paribas and will be worth around 30 billion euro. Further consolidation is likely in France, and there may the possibility of French banking merging into two camps, commercial led by SG Paribas, and mutual led by Credit Agricole. France is less concerned about the lack of competition than the UK as profits are much lower and competition will come from foreign banks.

Banking industry, Mergers, acquisitions and divestments, Societe Generale S.A., Paribas S.A.

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