Monetary Policy
Riksbank deputy pleased with macro-prudential progress 'for now'
Martin Flodén says further measures could be taken if central bank's 0% interest rate fails to push up inflation toward 2% target
Klaas Knot: It’s up to governments now
Netherlands Bank president tells parliament that European governments will have to boost growth and ‘stir up’ inflation themselves; latest central bank bulletin reinforces point
The shift to a multi-polar world
Extraterritorial reach of US policies could hasten the use of alternative currencies; decision on renminbi inclusion in SDR may be a tipping point for relevance of Bretton Woods institutions
Dealing with an age of turbulence in emerging markets
Nigerian deputy governor details the options available to emerging markets when reacting to changes in developed-world monetary policies and associated fund movements
Czech currency intervention and forex reserves
Michal Skorepa and Mojmír Hampl explain how the Czech National Bank’s activities have directly and indirectly affected the value of the koruna, including the impact of direct interventions in 2013
Book notes: Finding Equilibrium, by Till Düppe & Roy Weintraub
This unusual book describes the early progress in the mathematisation of economics and, in particular, micro-economic model building
Book notes: GDP: A Brief but Affectionate History, by Diane Coyle
A whistle-stop tour of the development of GDP, a workhorse of economic modelling and analysis
Kuroda wins over BoJ policy rebels
Three of four dissenters at the last policy meeting line up behind Bank of Japan’s expanded easing programme as inflation slips lower
Bank of Canada weighs inflation target increase
Consideration should be given to an inflation target that is above 2%, deputy governor argues; says lower neutral interest rate could lead to ‘non-trivial’ increase in ZLB episodes
Central Bank of Brazil takes action to boost credit
Co-operative banks in Brazil to be granted as much as 760 million reais for new loans and allowed to issue bonds, in a move designed boost credit in the country
BoE’s Forbes says financial ‘deglobalisation’ has upside
Kristin Forbes highlights ‘massive contraction’ in global bank flows as main factor reversing financial globalisation, resulting in both positive and negative effects on the UK economy
Kocherlakota wants Fed to mimic Bank of Canada communication
Minneapolis Fed president calls for ‘symmetric’ inflation target and two-year horizon for achieving it; says FOMC should adopt Canada-style language to characterise inflation objective
Robert Pringle’s Viewpoint: Time to cure central bankers’ deflation phobia
The policies followed since the ‘great crisis’ have not succeeded in restoring confidence. It is time to try a different approach
Snap election spells headache for BoJ
Shinzo Abe calls snap election to bolster support for delaying a planned tax hike, but the move has implications for the Bank of Japan’s quantitative easing programme
Bank Indonesia raises interest rates in ad hoc meeting after fuel price rise
In an unexpected meeting, the Bank of Indonesia decided to raise the interest rate to 7.75% to tackle inflation, after the government raised fuel prices by more than 30%
Draghi says sovereign bond-buying is on the table and under scrutiny
ECB staff preparing plans for various unconventional policies, with sovereign bond-buying very much under consideration, president says; dismisses concerns that low rates defer government action
Praet: Covered bond supply ‘dynamised’ by ECB purchases
European Central Bank executive board member Peter Praet identified ‘a number of supply side reactions’ to covered bond purchases, which hit €10.5 billion last week
St. Louis Fed’s Bullard doubts zero lower bound
James Bullard says low inflation in the US may justify a ‘somewhat lower-than-normal’ policy rate, but not remaining at the zero lower bound
Serbian central bank cuts key rate with inflation stuck below target
National Bank of Serbia ‘trims’ key rate to 8% with inflation hovering around 2%; also lowers foreign exchange reserve requirements in an effort to get banks lending
Plosser: central bankers should take ‘great care' in changing view on neutral interest rate
Distinguishing transitory from permanent changes in growth and real interest rates is a ‘tricky task', says Philadelphia Fed president and FOMC member
IMF finds Mexico well-placed to weather capital market volatility
Mexico should be able to ‘weather’ a rise in volatility, says the IMF, since the country has a healthy buffer of international reserves and ‘deep and liquid’ financial markets
Dudley says Federal Reserve could do more to be a ‘better global steward'
Permanent FOMC member suggests dollar's reserve currency status sets the US central bank apart; warns Fed funds rate hike likely to spark ‘market turbulence'
Carney dismisses call for helicopter money
Bank of England governor says he ‘cannot envisage any circumstance’ where direct central bank financing of government debt would be justified – but some central banks may already be doing it
BoJ’s Sato sees macro-prudential comms issue
Policy board member identifies three issues surrounding the implementation of macro-prudential measures – timing, communication and spillovers