Finance leaders plot move to end crisis.
Byline: MARTIN CRUTSINGER WASHINGTON (AP) -- The world's top financial officials, shaken by a credit crisis that has roiled markets, are working on regulatory reforms that they hope will restore confidence in the markets. The plan they have under consideration seeks to boost transparency, strengthen...

The Fed's road toward greater transparency.
The more fully the public understands what the function of the Federal Reserve System is, and on what grounds its policies and actions are based, the simpler and easier will be the problems of credit administration in the U.S. --Federal Reserve Board, Annual Report, 1923 (p. 38)...

The case for price stability with a flexible exchange rate in the New Neoclassical Synthesis.
The New Neoclassical Synthesis is a natural starting point for the consideration of welfare-maximizing monetary arrangements in the international context. Alternatively known as the New Keynesian model, this consensus model of monetary policy deserves our attention because it embodies cumulative advances in theory and policy informed by decades of...

Milton Friedman and the case against currency monopoly.
A longstanding tradition in economics, dating back at least to Adam Smith, looks askance at statutory monopolies, condemning almost all of them as unnecessary barriers to economic progress. Thanks largely to this tradition most of the monopolies present in Smith's day are no longer tolerated. The few exceptions are...

BSP net worth reduced to P197.5 B.
Byline: LEE C. CHIPONGIAN The Bangko Sentral ng Pilipinas (BSP) had a reduced net worth of P197.5 billion as of end-November, 25 percent lower than November 2006's P263.17 billion, latest data show. This is also lower than October's P214.31 billion and September's P231.14 billion. ...

P/$ rate closes at P41.64/$ 1.
The peso exchange rate closed higher at P41.64 to the US dollar yesterday at the Philippine Dealing & Exchange Corp. (PDEx) from P41.725 the previous day. The weighted average rate appreciated to P41.651 from P41.708. Total volume amounted to $ 515.05 million. BSP rates to hold for...

ADB issues $ 1-B 3-year global bonds.
Byline: Edu Lopez The Asian Development Bank returned to the US dollar bond market with the sale of $ 1 billion three-year global benchmark bond issue, proceeds of which will be part of the bank's ordinary capital resources and used in its non-concessional operations. The...

BSP plans to slash FX losses by 60%.
Byline: LEE C. CHIPONGIAN The Bangko Sentral ng Pilipinas (BSP) is determined to reduce its net loss by more than 60 percent for 2008, or P16 billion from the emerging P41-billion loss for the fullyear 2007. The losses are due mostly from the BSP liquidity...

ASEAN ministers agree to hike currency swap facility to $ 80 B.
"Member economies welcomed the initiative to promote multilateralism," Japan's Finance Minister Fukushiro Nukaga told reporters after a three-hour meeting to hammer out the broad terms of the deal with his counterparts from 12 Asian economies comprising the so-called ASEAN+3 group. The deal -- more than a year...

MARKET TRACK.
Trading yesterday saw the broader all shares index increased by 12.50 points (from 1,503.99 points) to 1,516.49 points together with all sectors by an average of 18.53 points except mining and oil which decreased by 150.76. Gainer outnumbered losers 60 to 31, while 48 stocks were unchanged. PSEi traded...