• Morgan Stanley’s Steven Roach reports on MacroVision findings . MS clients expect asset prices moving in narrow range in 2007, with moderate spread widening, and SandP 500 to perform very well.
  • Asian nations need better protection to prevent “massive” capital inflows from damaging their economies, according to central bank governors from the region, says Bloomberg article .

“In order to increase the ability to absorb external shocks from massive capital flows, the priority seems to be to strengthen the function of foreign exchange and financial markets in the region,” Bank of Japan Governor Toshihiko Fukui told a conference today in Tokyo.”

  • Magyar Nemzeti Bank (Central Bank of Hungary) organized a conference on inflation targeting. You can find interesting presentation of BoE Chief Economist Charles Bean, who discusses whether central banks should announce a rate path.