Unconventional monetary policy
Fed minutes shed light on balance sheet shrinkage plan
System of caps would allow gradual reductions in the reinvestment of securities held under the QE programme
Bernanke urges BoJ to keep up its easing efforts
Former Fed chair recommends the central bank continue its aggressive easing
ECB paper looks at PSPP’s ‘flow effects’ on sovereign bond yields
“Flow effects” have limited but real impact, researchers find
BoJ should provide ‘more realistic’ projections – former policy board member
Claims constant overestimation of inflation expectations undermines credibility
BoJ cuts inflation forecast at a time of falling JGB purchases
Core inflation forecast revised downwards as bond purchases appear to be declining
SNB able to cut rates further, Jordan says
Thomas Jordan stresses central bank would act if necessary
Income inequality should be a concern for central banks – IMF panel
IMF panel debates impact of unconventional monetary policy on income inequality
Fresh exchange rate cap remains an option – CNB minutes
Minutes of extraordinary meeting say future exchange rate commitment cannot be ruled out
Little EME volatility spillover from Fed/ECB balance sheets
Central bank policies had little impact on volatility in EMEs’ real markets – researchers
Lower rates link to higher exchange rate impact – BIS paper
Working paper finds monetary policy’s impact on exchange rate has grown as rates have fallen
ECB bond-buying has had ‘significant’ impact on Bund market
Impact of PSPP purchases substantially higher in stressed markets – Bundesbank paper
FOMC mulls ‘predictable’ balance sheet wind-down
One member says a “minimum pace” should be set for the reduction in mortgage-backed securities
Czech National Bank abandons koruna floor
Bank likely to be happy with market reaction, analyst says
Asset purchases could bring benefits in ‘normal’ times – paper
IMF working paper discusses whether asset purchases should be added to standard central bank toolkit
Fed’s Dudley discusses unwinding of balance sheet
Should reinvestment end “abruptly”, financial conditions would tighten, New York Fed president says
French paper examines impact of ECB’s PSPP on bond yields
Researchers use data from French market to examine bond shocks
IMF research uncovers ‘puzzling’ effect of QE on the current account
Authors see QE having significant impact only when capital mobility is low
Fed could shrink balance sheet to end “twist” on yield curve – Bullard
Allowing some bonds to run off the balance sheet could permit a more natural yield curve
Market ‘tightness’ affects QE success – Riksbank paper
Model accounting for demand and supply of bonds allows authors to reveal new insights
BoJ acts to thwart pressure on yields
Central bank commitment to yield curve control faces first serious test
Regulations and QE impacting repo market – ECB’s Mersch
“Confluence of factors” has boosted demand for collateral and impaired its supply
Yellen: Fed asset holdings provide automatic policy tightening
Downward pressure on long-run rates expected to diminish
Yield curve control has long history – BoJ’s Amamiya
Policy has roots in work of John Maynard Keynes
Carney hits back at critics of monetary policy’s distributional impact
Loss of open markets “would be a tragedy, but is a possibility”, governor says