Macroeconomics
Book notes: The other half of macroeconomics, by Richard Koo
Richard Koo questions whether central bank policy can work during a balance sheet recession, writes Graham Bannock
Denmark should avoid fiscal stimulus to preserve balanced recovery – central bank
Government should be ready to tighten public spending to prevent the economy from overheating
Juan José Echavarría on Colombia’s path to sounder monetary and economic policy
The governor of the Central Bank of Colombia talks about policy efforts to promote stability, the importance of independent institutions and the implications of Venezuela’s economic collapse
Automation of financial services poses problem for labour market
Central bankers fear the labour market may not recover as quickly as during previous technological revolutions
Carney warns no-deal Brexit would squeeze real income
Governor informs Treasury Committee of household “real income squeeze” in the event of a no-deal Brexit; Mervyn King calls government’s Brexit preparations “incompetent”
Inattention helps explain flat Phillips curve – Fed paper
Inflation may be less sensitive to shocks because people are not paying attention, authors say
Weidmann urges Greece to implement further reforms
Deutsche Bundesbank president recommends additional reforms and “sound” fiscal policy
Thailand’s macroeconomic policy at a ‘turning point’ – Santiprabhob
Policy will have to evolve to support the economy rather than stimulate it, governor says
Global crisis uncertainty harmed investment – BoE paper
Authors say their results offer a benchmark for possible Brexit-related uncertainty
IMF authors dismiss global Phillips curve as euro inflation driver
Domestic factors largely behind “remarkably stable” inflation in eurozone
Jackson Hole: policy-makers come to defence of disruption
Poloz and Carstens highlight benefits of technological and trade disruption; monetary policy can cope with the uncertainty, Bank of Canada governor says
Haldane: market power puzzle is important for policy
Micro and macro evidence “not easily reconciled”, says BoE chief economist, but market power could have major impact on inflation
West Bank weakness drives economic slowdown in Palestine
Palestine Monetary Authority notes “significant drop” in West Bank conditions index
Turkish lira down 22% as crisis builds
Lira collapses and bond yields soar as Donald Trump unveils fresh sanctions
US could lose a third of growth to climate change – Richmond Fed article
Authors warn economic damage could be much more widespread than typically assumed
Zimbabwean economy faces uncertainty after controversial election result
Violence and accusations of unfairness around the presidential election have dampened hopes of economic recovery
Equities pushing US wealth inequality - Minneapolis Fed paper
Wealth inequality boosted by record-high stocks and slower growth in house prices, paper finds
BIS paper links Japan’s household debt to consumption behaviour
The researcher examines how Japanese household debt affects marginal propensity to consume
Researcher models business cycle using ‘animal spirits’
San Francisco Fed paper incorporates ‘equity sentiment shock’ into model
Labour reallocation explains productivity puzzle – BoE paper
Methodological innovation helps solve data-quality issues, author says
Forecasting yield curve inversion is hard – Cleveland Fed research
Inversions may be a “harbinger of recession” but seeing them coming is difficult, says economist
NY Fed paper: ‘replacement hiring’ affects productivity wage gap
Replacement hiring can explain much of the gap between wages and productivity, authors say
Money matters for macro fluctuations – Fed paper
Working paper says previous research by Schularick and Taylor may have been flawed
Leading governors analyse evolving inflation-employment relationship
Powell, Draghi, Lowe and Kuroda assess causes keeping wage growth low across the world