‘Dark corners’ authors on setting policy under intense uncertainty
Douglas Laxton and Shalva Mkhatrishvili say policy-making should work to avoid the worst outcomes
How did the research into avoiding ‘dark corners’ – very bad outcomes for an economy – come about in the first place?
Douglas Laxton: When I was in charge of the economic modelling division at the International Monetary Fund, we were supporting both multilateral and bilateral surveillance and risk analysis. Following the co-ordinated G20 fiscal expansion in response to the global financial crisis, [then chief economist] Olivier Blanchard and many of us at the IMF became increasingly concerned
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Argentina on solid footing to head off oil shock – BCRA
Vice-president says recent uptick in inflation was driven in part by seasonal factors
Yellen draws lessons from an age of extremes
Ex-chair calls on Fed to look through supply shocks, supervise pre-emptively and defend its independence
Sarb hikes interest rates for first time in three years
MPC split, though governor says this was more about timing than direction of travel
Tensions between Banrep and government ease before elections
Recent ruling by Colombian court further enhances central bank’s independence
QT does not produce opposite effects to QE, evidence suggests
BoE study considers implications of 1980s ‘overfunding’ for policy-makers today
Haiti’s woes exacerbated by supply shocks – governor
Ronald Gabriel says regional central banks should adopt more internationalist approach
More African nations respond to inflationary effects of Iran war
Mauritius and Rwanda raise rates, though Nigeria, Ghana and Egypt opt to hold
Book notes: The art of monetary policy, by Kristin Forbes
The message that effective monetary policy-making requires judgement, flexibility and realism alongside technical expertise is both persuasive and highly relevant