Fiscal policy
Agustín Carstens on BIS strategic priorities, innovation and central bank policy
The BIS general manager speaks about policy trade-offs at critical time, tackling NBFIs and the dearth of ‘green’ assets, tech collaboration, and why he favours Biden’s $3.5trn infrastructure bill
BIS’s Borio urges return to fiscal-monetary separation
Action was necessary in crisis but could lead to “instability trap”, official says
OECD urges RBA to review policy framework
Recommendation comes just weeks after governor dismissed the idea
MMT and the challenge of fiscal monetary co-ordination
Sayuri Shirai contrasts modern monetary theory with regimes of monetary or fiscal dominance
Bank of Zambia governor resigns
Mvunga leaves following change in presidents, amid high inflation
Norges Bank given new macro-prudential responsibilities
Government assigns central bank power to set countercyclical capital buffer
Norwegian government may split SWF from Norges Bank
Committee will assess future governance of world’s largest sovereign wealth fund
Colombian president’s central bank appointment draws strong criticism
Opposition politicians allege ex-finance minister’s place on board endangers independence
Some philosophical questions about the future of central banking
Kenneth Rogoff weighs up the many challenges facing central banks in the years ahead, from debt and inflation to negative rates and the dangers of ‘mission creep’
Bolivian ex-governor warns pension law poses bank risk
Current governor has stayed silent on risks posed by measure, former governor Morales says
Too great expectations from the ECB’s strategy review
The review process represents operational best practice, but will fail to unify the Governing Council
Chilean governor opposes new pension withdrawals
Congress considering authorising fourth drawdown as stimulus measure
Is the ECB’s strategy review enough?
The reformed framework may allow greater stimulus to tackle weak inflation expectations, but the Governing Council is already divided on what to do next
Bank of Thailand calls for additional $30 billion borrowing
Debt totalled 54% of GDP by June, putting pressure on the 60% ceiling
Belize governor resigns after 19 weeks
Central bank offers few details, but country has suffered sharp economic blows
Julio Velarde set to accept new term as Peruvian governor
New left-wing president said in June he intended to re-appoint long-serving governor
Global economy faces ‘decisive moment’ – IMF’s Gaspar and Gopinath
Policy-makers have “window of opportunity” to help those falling behind in Covid-19 recovery
Brazil accelerates tightening cycle with 100bp rate hike
Central bank takes key policy rate to 5.25%, as inflation increased by 8.4% in June
Iran’s Hemmati warns against monetary financing
Former governor mounts criticism of departing President Rouhani
BIS paper warns against ‘timid’ QE and ‘debt-averse’ fiscal policy
Policy mistakes at zero lower bound can worsen economic problems, authors say
Eurozone fiscal deficit declines in Q1
Lower imbalance due to lower spending; revenue remained stable as a share of GDP
ECB likely to shy away from AIT in new monetary policy framework
Symmetric 2% target is expected outcome; governing council members struggle to agree on forward guidance
Suriname central bank signs deal to end monetary financing
Accord with government will help debt-laden country secure IMF loan
IMF agrees with Fed on ‘transitory’ inflation
Georgieva says recent inflation spike likely to pass; supports Biden’s fiscal plans