Monetary Policy
Chilean paper finds central bank’s forecasts influence private sector expectations
Working paper finds evidence the private sector updates inflation expectations based on the Central Bank of Chile’s forecasts; suggests more central banks should publish forecasts to aid policy
BoE chief economist says QE impact will vary, but not diminish, over time
Spencer Dale says effects of asset purchases depend on the time and place they are conducted; Bank of Japan’s shocking policy announcement may have been necessary to correct misperceptions
Assistant governor says RBNZ should not be target of exchange rate ‘angst’
John McDermott deflects criticism that the central bank is failing to correct the exchange rate, warning hard-won inflation credibility could be lost and other factors are at play
IMF working paper examines monetary policy ‘leaning against the wind'
Monetary authorities that want to stimulate the economy while maintaining financial stability should cut deeper, but then raise rates again faster
Hungary launches $2bn scheme to boost SME lending
New scheme will lend to commercial banks interest-free to on-lend to SMEs; cash also available to re-finance foreign-denominated loans into Hungarian forints
San Francisco Fed president predicts mid-year asset purchase slowdown
John Williams says economy has shifted into ‘higher gear’ and a substantial labour market improvement could trigger decline in asset purchases
Draghi promises Cyprus bail-out is ‘no template’
Mario Draghi says an established pecking order of ‘bail-inable’ debt will avoid repeating the chaotic resolution in Cyprus; ECB and BoE both hold rates
Kuroda unveils radical plan to end Japanese deflation
Measures aim to double monetary base in two years, with asset purchases no longer constrained by banknote rule; mixed response as questions raised over whether yet more easing will work
BoE economist warns of tendency to ‘overstate’ fiscal multipliers
Matthias Paustian says simple Keynesian models can produce unrealistically high fiscal multiplier when examining fiscal policy at the zero lower bound
Fed’s Lockhart advocates ‘wait and watch’ approach to asset purchases
Atlanta Fed president acknowledges risks surrounding ever more quantitative easing, but says purchases should not diminish until it is clear the economy has traction
Israel annual report sees growth and inflation fall
Growth rate declines by 1.5% in 2012 but unemployment remains stable; inflation falls below target as schooling and mobile phone prices fall
Barbadian governor proposes adopting new policy rate
DeLisle Worrell and other senior central bank staff suggest adopting three-month Treasury bill rate as key policy rate, saying it is more practical for small, open economies
IMF calls on Hungary to safeguard central bank independence
The Fund's executive board urges National Bank of Hungary to preserve legal and operational independence; encourages a 'pause' in monetary easing
RBA governor sees scope for further monetary easing
Glenn Stevens explains rate hold at 3%, but says there is scope for further easing as growth undershoots target
Bundesbank research finds strong role for China in global inflation dynamics
Discussion paper weighs cross-border effects of supply and demand shocks in China; results suggest Chinese shocks explain an average of 5% of total inflation across countries
Fed doves disagree over FOMC's next move
Boston Fed’s Rosengren sees scope to continue asset purchases at current rate throughout 2013; Cleveland Fed’s Pianalto wants to slow programme down if labour market improvements hold
McKinnon says Fed must raise rates to stimulate growth and employment
Leading academic says positive real interest rates are the only way out of a credit crunch that's holding back lending to the productive economy
Fed ‘stimulus’ chokes indirect finance to SMEs
Low interest rates in the US are crowding out indirect finance to SMEs and distorting financial markets generally. The Fed needs to act by raising rates to 2%, argues Ronald McKinnon
Michael Woodford backs combining nominal GDP and inflation target
Leading monetary policy theorist advocates immediate fiscal transfer to the public, funded by central bank purchase of government debt, coupled with adoption of nominal GDP target
Riksbank submits account of monetary policy 2012
Report on last year's actions submitted to parliament to assess Riksbank performance
Bundesbank researchers test if higher inflation could ease public debt burden
Paper finds 'minor effect' on public debt from a raised inflation target, and would only be felt over a long time-frame
Osborne defends new Bank of England remit
George Osborne defends changes to Bank of England’s remit; UK economists say the finance minister has shifted the burden for stimulating growth on to the central bank
Bernanke denies QE represents competitive devaluation
Fed chairman plays down effect of asset purchases on exchange rates and emerging markets; Axel Weber says countries can lean against QE if necessary, but highlights more serious flaws
Fed working paper measures FOMC comms effect against theory of UIP
Paper finds 'little evidence' for a changed relationship between FOMC announcements and US interest rates since the 'onset of the zero lower bound'