Analysis of information sources in references of the Wikipedia article "Mervyn King, Baron King of Lothbury" in English language version.
[T]he Bank of England Act 1998 and the associated Memorandum of Understanding between the Bank, Treasury and FSA on financial stability . . . [f]reed [the Bank] from the responsibilities of day-to-day regulation, [meaning] the Bank has been able to focus on two principal objectives: maintaining monetary stability and maintaining financial stability. Those objectives are the essence of central banking.
[T]he governor had, at one point, been opposed to the idea of the Bank becoming a super-regulator.
Premier Wen Jiabao said this month that the government won't relax property curbs. The government this year raised down-payment and mortgage requirements and imposed home purchase restrictions in about 40 cities to avert a bubble. The central bank increased interest rates three times and reserves ratio six times this year.
According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history
Housing prices in a growing number of Chinese cities fell last month, weighed down by a sustained government campaign to deflate the market.
China's authorities have spent much of the past two years trying to engineer a slowdown in property prices. Now they have got one ... [P]roperty has dropped down the list of top investment options for Chinese households[.] . . . That is what the Politburo wants to see.
Housing prices in a growing number of Chinese cities fell last month, weighed down by a sustained government campaign to deflate the market.
China's authorities have spent much of the past two years trying to engineer a slowdown in property prices. Now they have got one ... [P]roperty has dropped down the list of top investment options for Chinese households[.] . . . That is what the Politburo wants to see.
The authorities in Beijing, especially the CBRC and the People's Bank of China (the real central bank), have a good record of managing incipient booms and busts. . . . They have considerable flexibility, owing to a range of policy tools, including variable capital and reserve requirements and direct controls on mortgage lending terms. They have already been tightening the screws on credit growth for several months, with positive effects.
[T]here were runs on the retail banks in 1914.
Until the latest episode, the UK's deepest postwar downswing was in the early 1980s. Despite the concerns of 364 economists—including Mervyn King, now the Governor of the Bank of England—who wrote in 1981 to The Times to argue that we were doomed, the British economy staged an impressive rebound.
Sushil Wadhwani, a former MPC member, says the committee could have warned that interest rates would, in future, be set higher than justified by the two-year inflation forecast, which would have dampened house prices. Australia followed just such a strategy.
Premier Wen Jiabao said [China] will not slacken its efforts in regulating housing prices, which he considered still 'far from a reasonable level. If we develop the housing market blindly, a bubble will emerge in the housing sector. When the bubble bursts, not only the housing market will be affected, it will weigh on the entire Chinese economy'.
[T]here were runs on the retail banks in 1914.
[T]he Bank of England Act 1998 and the associated Memorandum of Understanding between the Bank, Treasury and FSA on financial stability . . . [f]reed [the Bank] from the responsibilities of day-to-day regulation, [meaning] the Bank has been able to focus on two principal objectives: maintaining monetary stability and maintaining financial stability. Those objectives are the essence of central banking.
Premier Wen Jiabao said [China] will not slacken its efforts in regulating housing prices, which he considered still 'far from a reasonable level. If we develop the housing market blindly, a bubble will emerge in the housing sector. When the bubble bursts, not only the housing market will be affected, it will weigh on the entire Chinese economy'.
