Unconventional monetary policy
BIS studies highlight limits to unconventional policy
Policies seen as broadly effective, but reports warn of spillovers and other unintended effects if the policies are used too much and for too long
‘Wrong’ to say Fed is out of policy space, Bernanke argues
Former chair estimates unconventional policy adds 3% to Fed’s room for manoeuvre
ECB’s OMT and banking union rekindled financial integration – research
Subprime mortgage crisis interrupted progressively higher integration from 1995–2007
Orr: RBNZ ‘thinking hard’ about unconventional policy
Governor says tools not likely to be needed, but “we would be remiss not to be prepared”
ECB corporate QE also transmitted through bank lending – ECB research
Spillover effect independent from banks’ balance sheet quality
Households respond more forcefully to rate cuts than QE – Dallas Fed
Fed should improve communications for QE and forward guidance, researchers say
Negative rates could lower inflation expectations – San Fran Fed paper
Japanese inflation expectations fell after BoJ introduced negative rates, researchers find
RBA open to unconventional policy measures – deputy governor Debelle
Quantitative easing may be on the cards if central bank cuts rates to 0.5%
Foreign banks in US made sharpest reserve cuts – Kansas Fed paper
Researchers look at impact of Fed’s quantitative tightening on US banks’ assets
Overcoming deflation: Japan’s experience and challenges ahead
Bank of Japan governor Haruhiko Kuroda explains how Japan’s long battle against deflation may offer insights for the future conduct of monetary policy at other central banks
Fischer and Hildebrand call for emergency policy tools
Former central bank chiefs say existing monetary tools are “almost exhausted”
Fed paper looks at negative rates’ impact on eurozone banks
Effects of policy rate cuts on equity change past the zero lower bound, researchers say
Central banks should use direct lending in shocks – BIS paper
Lending to firms directly could reduce welfare loss during financial shocks, researchers say
IMF sets up new monetary policy modelling unit
Fund responds to criticism from IEO report
Australia could reach zero lower bound, says Lowe
Governor says RBA is open to unconventional monetary policy
The future of balance sheet policies
Central banks are expected to resort to a range of balance sheet activities to fight the next downturn. William Towning investigates what tactics they may deploy
Fed researchers gauge tightening from balance sheet normalisation
Tightening is ‘modest’ compared to accommodation provided by asset purchases, researchers find
Central bank ‘put’ can harm market function – Kuroda
BoJ chief says easing measures are working, but central banks must be wary of side-effects
Weidmann accepts OMT as ministers discuss Draghi succession
Bundesbank president withdraws his opposition to OMT programme unveiled by Mario Draghi in 2012
Review calls on IMF to deepen monetary expertise
Independent report says IMF broadly made the right calls on risks around unconventional policy, but shortage of expertise leaves fund behind the curve
Kenya’s rate controls caused ‘collapse’ in credit – IMF paper
Caps undermined central bank’s control over signalling policy stance, researchers find
Fed prepared to adjust balance sheet size and composition
Minutes reveal discussions of how the Fed could use its balance sheet in long-run
Quantitative easing: a never-ending story?
The Federal Reserve is cutting the size of its balance sheet, but is unlikely to reduce it to pre-crisis levels due to fears about financial stability. It also appears to have kept its floor system for the same reason
Higher EU corporate bond spreads in 2018 unrelated to ECB policy – research
Global trade disputes played a bigger role than the end of the European asset purchase programme