Monetary Policy
Klaas Knot on ECB policy-making, the FSB and central bank ‘capture’
DNB president talks about the temporary nature of unconventional policies, the importance of inflation target ‘bands’, the role of central banks as ‘circuit-breakers’ and ECB decision-making under Christine Lagarde
Don’t wait too long to normalise balance sheets – Bailey
Central banks need to unwind balance sheets when tightening policy, BoE governor warns
Central bank comms need “second sea change” – Canadian governor
Pandemic has shown importance of transparency and communications, Tiff Macklem says
Bank of Korea forecasts GDP will contract by 1.3%
Central bank leaves interest rates on hold but says growth outlook remains uncertain
Fed adopts average inflation target
Powell says FOMC will also allow employment to run above estimated maximum level
Eurozone needs ‘forceful policy response’ – Schnabel
Banks in eurozone face “substantial pressure” from Covid-19, ECB board member warns
Thai governor calls for bigger fiscal boost
“More needs to be done”, Santiprabhob says, as Thai economy faces major contraction
The eurozone’s eastern conundrum
Bulgaria and Croatia expect a net positive effect as they take final steps to join the euro, while the Czech Republic, Hungary and Poland remain reluctant
Bank of Canada seeks public views on inflation targeting
Canadian central bank aims to increase public engagement with monetary policy review
RBNZ investigating use of negative rates, official says
New Zealand central bank would only use measure if necessary, assistant governor says
Turkey holds rates but raises reserve ratios
Move appears to be attempt to stem fall in currency despite president’s opposition to rate hikes
Bank of Zambia cuts rates as Covid concerns intensify
Zambian central bank calls for debt sustainability policies as growth and inflation forecasts worsen
RBA expects long period of low inflation – minutes
Policy set to remain on hold, as board members say term funding is having desired effect
James Bullard on the Fed’s policy review, FSOC and forecasting jobs data
St Louis Fed president discusses his support for average inflation targeting, his concerns about US Treasuries market function, non-bank regulatory weakness and negative rates, as well as the unexpected success in using Homebase data to predict highly…
Bundesbank paper uses neural networks for rate forecasting
Artificial neural networks outperform linear and non-linear functions, author says
Book notes: The menace of fiscal QE, by George Selgin
Much of this book is even more relevant, thought-provoking and important following Covid-19
Weak banks undermined first round of QE – BoE paper
Undercapitalised banks took defensive measures rather than boosting lending, research finds
South African governor warns against QE
South Africa is not near deflation and QE would harm stability, governor warns
Bank of Mexico cites ‘major challenges’ as it cuts rate
Policy-makers focused on maintaining “room for manoeuvre” as inflation risks evolve
Book notes: Radical uncertainty, by Mervyn King and John Kay
The one certainty we have faced is that we have to confront uncertainty, which is precisely the point of this wonderful book
New Fed discount window could ease bankruptcy crisis – researchers
Many companies may not endure a further liquidity shock