Europe
Reconsidering the role of money in monetary policy
Euro policy architect Otmar Issing argues that central banks must improve their flawed inflation targeting frameworks
Geopolitics is fastest-rising research topic for economists
Research economists are most widely judged on their output of papers
People: BoJ payments chief to join IMF
Plus: Australia appoints new monetary policy board member; Harrison to head comms at BoC
Sticky wages help explain depressed US sentiment – paper
Lack of salary indexation, rather than inflation, to blame for decline in sentiment, authors find
Slovak firms face high costs from heatwaves – blog post
Companies need to invest in adaptation, says central bank official
UK has a new prime minister, but the same fiscal woes
Debt, spending and bond markets present challenges for Burnham and BoE, say former MPC members
ECB speeches ‘twice as religious’ as other central banks’ – blog
Bank’s speechwriters use devotional tropes during times of crisis, LSE research finds
Economists devote up to half of working hours to research
Higher-paid research economists tend to spend more time on own research
ECB finds gaps in geopolitical stress-testing frameworks
Current methods fail to properly capture impact of geopolitical stress on liquidity
Comms staff need to reflect on how their messages are perceived
BoE’s Eric Tong discusses research probing how the public receives central bank messages via the media
ECB flags risks to cash despite rise in acceptance
Central banks should take active role in preserving cash, spokesperson says
Central banks predict growth more accurately than inflation
AI models may offer more precise forecasts
EU banks shrug off mooted minimum reserves increase
Doubling of unremunerated reserves would curb Eurosystem losses, but banks doubt it will pass
External shocks tighten credit conditions – ECB bulletin
New index finds funding becomes scarce after unexpected changes in economic activity
Most key projection models capture policy rates
But respondents rarely disclose policy rate forecasts alongside scenarios
PBoC appoints Deutsche Bank as a renminbi clearing bank for Europe
China’s central bank reiterates pledge to internationalise RMB as part of its five-year plan
National Bank of Romania holds rates amid political instability
Board votes to keep policy rate at 6.5%, extending two-year hold
Third of key models now employ endogenous financial sector
Multiple channels of monetary transmission rooted in majority models
Fresh graduates’ job market perception worsened by 23% in 2025 – ECB
Research points to slowing growth in knowledge-intensive services to explain otherwise ‘cyclical’ effect
Germany sees surge in €100 fakes amid overall counterfeit decline
Deutsche Bundesbank says overall levels of forged money remain low
Central banks complement traditional models with AI
Time series and semi-structural models remain economists’ choices for forecasting