Contents

List of Illustrations ix
List of Tables xiii
Preface xv
Acknowledgments xix
A Brief Introduction to the Financial Markets xxi
About the Author xxxiii

PART ONE
Central Banks
CHAPTER 1
An Overview of Central Banks 3

CHAPTER 2
Bank of England 15

CHAPTER 3
European Union and the European Central Bank 34

CHAPTER 4
Bank of Japan 54

CHAPTER 5
Bank of Canada 67

CHAPTER 6
Reserve Bank of Australia 81

vii
viii CONTENTS

CHAPTER 7
People’s Bank of China 92

PART TWO
Economic Indicators
CHAPTER 8
An Overview of International Economic Indicators 99

CHAPTER 9
European Indicators: Eurostat and National Statistics 132

CHAPTER 10
UK Indicators 179

CHAPTER 11
Japanese Indicators 201

CHAPTER 12
Canadian Indicators 220

CHAPTER 13
Australian Indicators 236

CHAPTER 14
Chinese Indicators 250

Appendix A: Key Indicators by Country and Issuing Agencies 258

Appendix B: National Income and Product Accounts vs. System of
National Accounts 262
Appendix C: Industrial Classification Systems 266
Glossary 269
Bibliography 275
Index 285
 List of Illustrations

Figure 2.1 Bank of England’s Policy Interest Rate 21

Figure 2.2 Consumer Price Index and Retail Price Index
Excluding Mortgage Interest Payments 23
Figure 2.3 Average Earnings 24
Figure 2.4 Halifax House Prices 26
Figure 2.5 Pound Sterling and the U.S. Dollar 31
Figure 2.6 UK and EMU Gross Domestic Product 32
Figure 2.7 Bank of England and European Central Bank
Interest Rates 32
Figure 3.1 ECB Policy Interest Rate 50
Figure 3.2 M3 Money Supply and Harmonized Index of
Consumer Prices 51
Figure 4.1 Yen per U.S. Dollar 57
Figure 4.2 The Nikkei 58
Figure 4.3 Bank of Japan Discount Rate 63
Figure 5.1 The Consumer Price Index and the Bank of Canada
Core Rate 70
Figure 5.2 Bank of Canada and Federal Reserve Target Interest
Rates 72
Figure 5.3 Canadian Dollar and the U.S. Dollar 77
Figure 6.1 Consumer Price Index 84
Figure 6.2 Reserve Bank of Australia and Federal Reserve
Target Interest Rates 86
Figure 7.1 People’s Bank of China Prime Lending Interest Rate 95
Figure 8.1 Germany—A Comparison of Two Unemployment
Rates 103
Figure 8.2 UK—Two Measures of Consumer Prices 104
Figure 8.3 Group of Seven GDP Growth in 2005 117
Figure 8.4 Unemployment in the EMU Countries Plus the U.S.,
Japan, and Australia 125
Figure 9.1 GDP in the EMU Plus the U.S. and Japan 135
Figure 9.2 Harmonized Index of Consumer Prices for the 12
EMU Countries 139
Figure 9.3 Producer Prices for the 12 EMU Countries 141
Figure 9.4 Unemployment Rate for the 12 EMU Countries 143

ix
x LIST OF ILLUSTRATIONS

Figure 9.5 Output Excluding Construction for the 12 EMU

Countries 145
Figure 9.6 EMU Merchandise Trade Balance 147
Figure 9.7 M3 Money Supply 149
Figure 9.8 Retail Sales for the 12 EMU Countries 150
Figure 9.9 EU Confidence Survey for the 12 EMU Countries 152
Figure 9.10 Germany—GDP 155
Figure 9.11 Germany—Consumer Price and Producer Price
Indexes 156
Figure 9.12 Germany—East, West and Total Unemployment
Rates 158
Figure 9.13 Germany—Manufacturing Orders and Industrial
Production 159
Figure 9.14 Germany—Merchandise Trade Balance 161
Figure 9.15 Germany—Retail Sales 162
Figure 9.16 Germany—Ifo Sentiment Survey 164
Figure 9.17 Germany—ZEW Indicator of Economic Sentiment 164
Figure 9.18 France—GDP 166
Figure 9.19 France—Consumer Price and Producer Price Indexes 167
Figure 9.20 France—Unemployment Rate 168
Figure 9.21 France—Industrial Production 169
Figure 9.22 France—Merchandise Trade Balance 170
Figure 9.23 France—Consumption of Manufactured Goods 171
Figure 9.24 Italy—GDP 173
Figure 9.25 Italy—Consumer and Producer Price Indexes 174
Figure 9.26 Italy—Unemployment Rate 176
Figure 9.27 Italy—Industrial Production 176
Figure 9.28 Italy—Merchandise Trade Balance 177
Figure 10.1 UK—GDP 180
Figure 10.2 UK—Two Measures of Consumer Prices 185
Figure 10.3 UK—Input and Output Producer Prices 187
Figure 10.4 UK—Employment Change 189
Figure 10.5 UK—ILO and Claimant Unemployment Rates 191
Figure 10.6 UK—Average Earnings 193
Figure 10.7 UK—Merchandise Trade Balance 194
Figure 10.8 UK—Manufacturing Output 197
Figure 10.9 UK—Retail Sales Volumes 198
Figure 11.1 Japan—GDP and the GDP Price Deflator 204
Figure 11.2 Japan—The Tankan 205
Figure 11.3 Japan—Consumer Price Index and the Corporate
Goods Price Index 208
Figure 11.4 Japan—Industrial Production 210
List of Illustrations xi

Figure 11.5 Japan—Tertiary Index 211

Figure 11.6 Japan—All Industry Index and GDP 212
Figure 11.7 Japan—Unemployment Rate 214
Figure 11.8 Japan—Merchandise Trade Balance 217
Figure 11.9 Japan—Retail Sales 219
Figure 12.1 Canada—GDP, Consumption and Investment 221
Figure 12.2 Canada—Monthly GDP, Services and
Manufacturing 223
Figure 12.3 Canada—CPI and Core CPI 225
Figure 12.4 Canada—Industrial Product Price Index and Raw
Materials Price Index 227
Figure 12.5 Canada—Unemployment Rate 229
Figure 12.6 Canada—Merchandise Trade Balance 232
Figure 12.7 Canada—Retail Sales 234
Figure 12.8 Canada—Manufacturing Shipments 235
Figure 13.1 Australia—GDP 239
Figure 13.2 Australia—Consumer Price Index 241
Figure 13.3 Australia—Producer Price Index 242
Figure 13.4 Australia—Unemployment Rate 243
Figure 13.5 Australia—Merchandise Trade Balance 246
Figure 13.6 Australia—Retail Sales 248
Figure 14.1 China—Gross Domestic Product 252
Figure 14.2 China—Consumer Price Index 255
Figure 14.3 China—U.S. China Bilateral Trade Balance 256