Fiscal policy
The new era of money supply and its impact on policy
The empirical relationship between money and inflation has changed, writes Manmohan Singh, with Apoorv Bhargava and Peter Stella. To understand current policy challenges, we must first understand money creation
Bank of Mexico holds rates despite above-target inflation
Central bank keeps policy rate at 4% as inflation rose year on year by 6.1% in April
IMF urges Mauritius to reform central bank
Bank of Mauritius made loan to government in 2020 and funds investment body with reserves
Riksbank maintains stimulus as it revises up growth forecasts
Swedish central bank says a return to negative rates is possible if inflation target is imperilled
Ecuadorian lawmakers pass central bank independence law
IMF demanded measure to create autonomous board and bar monetary financing
Emerging markets should prepare for higher rates – IMF article
Middle and low-income economies need to anchor fiscal policies after the pandemic is under control
Communities struggle to access stimulus funds – Richmond Fed
Barkin details challenges of getting relief funds to recipients
Biden stimulus will not move inflation much – Chicago Fed paper
Research finds most models predict very limited and short-term increases
MMT rests on ‘untested statements’ – Richmond Fed paper
Authors warn that modern monetary theory rests on shaky foundations
Book notes: Central banks as fiscal players, by Willem Buiter
Buiter puts a real economic problem into a convincing theoretical frame, and translates it into applicable policy advice
IMF adjusts growth forecasts upward
Fund warns of uneven and unequal recovery, but is more optimistic than it was in October
Fed won’t set rates to ease debt pressure – Waller
Newest Fed board member stresses central bank autonomy in first public address
BoE’s Tenreyro highlights divergence in UK and US policies
US focused on protecting incomes, while UK protected jobs, MPC member notes
Belize central bank law to allow bigger loans to state
Amendments come amid debt crisis as IMF warns country to defend currency peg
Governor of the year: Alejandro Díaz de León
Díaz de León has upheld the authority, integrity and independence of the Bank of Mexico against significant external and internal pressures
Central Bank of Argentina calls for investigation of IMF agreement
Fund granted South American economy over $57 billion in 2018, its largest-ever package
SNB profit drops by nearly 60%
Swiss central bank records much smaller profits on foreign currency positions
Mário Centeno on monetary-fiscal interaction in the eurozone
Bank of Portugal governor says ECB is not being overrun by former finance ministers, must improve the definition of its inflation target and has no need for yield curve control. Centeno believes NextGenerationEU fund could serve as template for a future…
Eurozone needs fiscal stimulus – ECB’s Schnabel
ECB board member says raising eurozone inflation needs fiscal evolution and structural reform
RBNZ to support government housing objectives
New Zealand finance minister changes central bank’s monetary and financial policy remits
Rich countries must aid poor over Covid-19: Georgieva
IMF chief warns of future financial instability and calls for major aid flows to developing world
Book notes: Capital and ideology, by Thomas Piketty
A political pamphlet like Milton’s ‘Areopagitica’, but longer
Norges Bank’s policy space ‘almost exhausted’ – governor
Norwegian governor warns public spending is increasingly dependent on sovereign wealth fund
Kenya’s central bank transfers $45.6m to government
IMF approves pause in fiscal tightening as Kenyan authorities deal with impact of pandemic