Monetary Policy
Boston Fed paper examines stock price sensitivity to monetary policy
Research presents evidence from the Enron scandal that stock prices of financially constrained companies become less responsive to monetary policy shocks if financial frictions are present
Kocherlakota suggests two-year timetable on 2% target
Minneapolis Fed President says lack of a time frame suggests 'appropriate monetary policy might engender inflation that is far from the 2% target for years at a time'
Visco echoes Draghi with call for more private investment
Bank of Italy’s governor argues the main challenge in the legacy of the great recession is ‘posed by the developments in the real economy’
Central Bank of Morocco cuts rates for first time since March 2012
North African economy has seen growth slow and unemployment increase in 2014 as its main export markets in Europe continue to struggle
Canada deputy: Neutral rate of interest has dropped
Potential growth will be lower than before the crisis, warns Carolyn Wilkins, while neutral rate for Canada is 3-4%, down from pre-crisis level of 4.5-5.5%
Angolan kwanza and Namibian dollar will ‘appreciate’ on back of central bank deal
Angola and Namibia’s central banks signed a currency conversion agreement that will ‘contribute to the appreciation’ of their currencies, according to José de Lima Massano
Draghi defends TLTRO allocation of €82.6 billion
ECB president tells Econ Committee last week’s targeted LTRO ‘within the range of take-up values’ he expected; outlines shift to ‘more active’ management of balance sheet
RBA bulletin considers Indian inflation measures
Research looks at differences between WPI and CPI, noting that prices have increased at a ‘much faster pace’ in the latter
Zambia’s Gondwe lauds interventions to support kwacha
Michael Gondwe declares success in Bank of Zambia’s use of monetary policy to shore up a sliding kwacha; says central bank now in a position to loosen tight liquidity conditions
FOMC's Lacker denounces committee's new normalisation principles
Richmond Fed president says FOMC expectation not to sell MBS as part of balance sheet reduction flies in the face of half-a-century's worth of Fed practice
BoE paper: ‘No evidence' QE operated via bank-lending channel in UK
If quantitative easing gives rise to short-lived deposits in a given bank, the traditional bank-lending channel is diminished, BoE paper finds
FOMC to raise rates before shrinking balance sheet
Federal Reserve unveils principles for policy ‘normalisation' as members' calls for rate hike grow louder; normalisation not necessarily expected to 'begin soon'
Bank of Russia to complete shift to inflation targeting regime by 2015
Geopolitical tensions, increased food costs and financial market turmoil will not deter central bank from pursuing 4% inflation target that is to be phased in next year
Liikanen: 'Unanimous' ECB will expand arsenal if necessary
Bank of Finland governor says a wider range of monetary policy instruments makes open decision-making increasingly important
Perceptions of monetary policy determine long-term bond yields, IMF paper finds
Rise in yields following Federal Reserve ‘taper talk' in 2013 is due to monetary policy shock; communications should place less focus on explaining adjustment triggers
Robert Pringle’s Viewpoint: A qualified case for Scottish independence
If the Scots vote for independence they will run many risks including a perilous path to create a Scottish currency; but they have the human resources to make a go of it
Bank of England QE led institutional investors into corporate debt
Portfolio rebalancing into riskier assets triggered by monetary easing did not extend to equities, BoE paper finds
Brazilian MPC says inflation will converge to target within two years
Annual inflation in August was 6.5%, but the central bank believes it will reach the target of 4.5% in the ‘early quarters of 2016'
Euro adoption linked to ‘modest’ increase in Estonian inflation
Bank of Estonia economists say the strongest inflationary effects were on food products, six months before the changeover
Chile and Peru cut key rates by 25bp citing 'low dynamism'
Both central banks point to a lack of “dynamism” in their economies as they cut their key interest rates; Peruvian statement stresses the decision does not imply a sequence of rate cuts
Draghi sets out national reforms necessary to revive investment
ECB president says inflation will not fully recover until investment increases, which is dependent on national governments pursuing structural reforms
ECB and BoE seek insights into yield curve behaviour
Frankfurt conference aims to improve understanding of the yield curve in the wake of the financial crisis, at a time when European and US yields are diverging
Cœuré explains motivation for negative deposit rates
European Central Bank executive board member says it is ‘not enough’ to lower the main refinancing rate in an environment of excess liquidity
Iwata says Japan’s exports headed for a ‘moderate increase’
The ‘sluggishness in emerging economies’ has provoked ‘some weakness’ in Japan’s exports, says the deputy governor of the Bank of Japan, but this should ‘gradually disappear’