Deflation
Deflation tends to de-anchor expectations – BIS paper
Deflationary episodes seem to render expectations lower and more backward-looking
Bank of Zambia to revamp ‘outdated’ supervisory framework
IMF praises the central bank’s efforts to inspect banking sector following overhaul of monetary policy framework in last 12 months
Czech exchange rate floor helped fight deflation – IMF paper
Range of methods imply the exchange rate floor was an effective measure, having been employed after hitting the zero lower bound
BoE paper warns escape from secular stagnation may ‘beggar thy self’
Authors outline an unappealing situation where the only escape comes from currency depreciation, but may nevertheless end up harming domestic welfare
GDP calculation needs double deflation, says IMF paper
Single deflation techniques introduce errors which can be significant, authors argue, concluding all nations should use double deflation
Armenia cuts again as deflation deepens
Central bank cuts headline rate as inflation dips further below zero, though the board maintains it will be able to return inflation to target in medium term
Asset prices can signal abnormal inflation rates, paper argues
Asset prices can provide warning of forthcoming high or low inflation, a Netherlands Bank working paper says, but transmission times can be “quite long”
Tonga central bank promotes ‘prudent lending’
National Reserve Bank of Tonga says bank lending rose by 12% in year to November, driven chiefly by lending to households
Polish governor says inflation will rise slower than expected
Inflation will not turn positive in January 2016 as previously expected, governor Marek Belka says; monetary policy council keeps policy rate unchanged
Eichengreen says central banks lack will not ability to tackle deflation
Central banks have the tools to deal with bad deflation if they are willing to act aggressively enough, economist argues; broadening asset purchases or helicopter money are both options
Greek deflation continues to bite
Official data shows prices falling by 1.3% in July while house prices continue a steep decline
Zhu Guangyao on global financial governance, divergent monetary policy and IMF reform
China's vice-minister of finance Zhu Guangyao speaks about the state of the global economy, deflation, and China's role in finance reform and the international monetary system
Global economy in ‘unprecedented scenario’, says Linde
The global economy faces an "unprecedented scenario", including "risks to financial stability and possible highly volatile movements in the prices of financial assets", says Bank of Spain governor
Linde: ECB’s QE is already ‘bearing fruit’
Households and families are enjoying better financing conditions due to the ECB’s quantitative easing programme, argues Luis Linde, governor of the Bank of Spain
Bank of Korea torn between debt and demand
The central bank in Asia's fourth biggest economy is grappling with how to set policy when the country carries a private debt burden that could increase in size no matter the strategy
Hungary adopts 'tolerance band' around inflation target
Band gives policy-makers greater flexibility and reflects willingness to tolerate temporary deviations from target; central bank cuts rates to resist negative inflation
IMF tells SNB to consider asset purchases
In the face of slowing growth and deepening deflation the Swiss National Bank should ease monetary policy, which could be done via purchases of foreign currency assets, IMF says
BoE minutes highlight risks from sterling strength
MPC members raise concerns over divergence of monetary policy and the resulting strength of the UK’s currency, which has the potential to hold inflation lower for longer
Ingves lays out toolbox at Riksbank’s disposal
Swedish central bank governor says he ‘will do more if necessary’ to fight deflation, arguing ‘there are several ways to make monetary policy more expansionary’
Poll: Should inflation targets be scrapped?
As advanced economies battle low inflation and interest rates remain constrained by the ZLB, should central banks rethink monetary policy orthodoxy?
Eichengreen says central banks should worry more about deflation than 'profits and losses'
The Berkeley professor on what last week's SNB move says about big central banks 'wrong-footing' markets and the Fed's problematic response to financial crisis
Eurozone inflation goes negative with QE looming
Annual HICP inflation falls to -0.2% in December due largely to plummeting oil prices; expectations rising for ECB to expand asset purchases on January 22
Kuroda affirms determination to ‘drastically convert’ Japan’s deflationary mindset
BoJ governor stresses commitment to continue with drastic policy measures until the ‘chronic disease of deflation’ is eradicated, in first speech since quantitative easing was ramped up
Japan's ageing population will have deflationary effects, IMF paper finds
Deflationary effect will hit other advanced economies too, but can be countered through monetary policy and structural reforms, IMF economists write