Research/Monetary Policy
QT does not produce opposite effects to QE, evidence suggests
BoE study considers implications of 1980s ‘overfunding’ for policy-makers today
Eurozone banks unexpectedly tightened lending – ECB survey
Respondents suggest tariffs were partly to blame for reduction in available credit for businesses
‘Pricing cascades’ crucial to post-Covid inflation – study
ECB researchers say speed and interdependencies were key components to shock
Europeans have more trust in compatriot ECB officials – study
ECB messages carry more weight when delivered by officials from one’s own country, research finds
Federal funds rate is not optimal, study warns
Dallas Fed research says transmission to other markets has deteriorated in recent months
Central banks finding new ways to tackle uncertainty – BIS study
Policy-makers using more scenario analysis and high-frequency data, survey finds
US policies could create challenges for MAS – Amro report
Singaporean central bank confident risks from possible capital inflows can be managed with existing tools
BoE paper highlights ‘cost-of-carry’ channel of monetary policy
High inventory levels can boost transmission, authors say
Central banks speak opaquely to avoid overreaction – ECB study
Authors say institutions tend to communicate more clearly when they know their reputations are low
Emerging market central banks should be hawkish – NBER paper
Stronger reactions to inflation surges help to build institutions’ reputations, researchers argue
Researchers revisit 20-year forecast for global monetary system
Eichengreen and Razo-Garcia predict further move towards polarised exchange rate regimes
Career concerns can lead to better FOMC voting – NBER paper
Study examines range of biases among Fed decision-makers
US inflation regime persistently above target now – Fed economist
Price rises are broad-based and have significantly impacted expectations says researcher
BoE paper offers methods for policy-making under uncertainty
Forecast-based, news-based and rules-based methods can be used together, authors say
US inflation expectations at risk of de-anchoring – Boston Fed study
Authors say post-Covid spike has altered perceptions of future price stability
EMs can adopt higher inflation targets – BoE Bulletin
Authors say more elevated goals reflect economies’ faster growth and susceptibility to supply shocks
New taxonomy of operating frameworks from BIS economists
Two-dimensional approach captures “surprising similarities” between different methods
Riksbank deputies say rate forecasting key to transparency
Officials say advantages of openness outweigh drawbacks
Liquidity impairment harms policy transmission – BIS paper
Authors say QE may be more potent in times of market stress
Tariffs may lower the natural interest rate – research
Increased trade costs reduce demand for capital, say authors
Teach people monetary policy to anchor expectations – ECB paper
Experiment run at ECB visitor centre finds strong impact from education