Fiscal policy
Putting modern monetary theory to the test
Sayuri Shirai asks whether MMT might hold the solution to Japan’s stagnation
Martin Feldstein, 1939–2019
The US economist was hugely influential in shaping both policy and economic research
Global imbalances require ‘carefully calibrated’ policies – IMF
Report comes as G20 leaders warn about imbalances concentrated in advanced economies
Carney warns of ‘global liquidity trap’
BoE governor says model of “capital flows at risk” highlights important vulnerabilities, but reserves may still be too big
Climate change – Where can central banks contribute?
Climate change is becoming increasingly important to central banks thanks to its implications for financial stability. In a forum sponsored by Amundi, Central Banking convened a panel of experts to discuss the latest innovations, regulations and…
Trinidad and Tobago prime minister ridicules central bank’s migrant figures
Acting PM says he has “no idea” how central bank estimated cost of migrant crisis
Bank of Spain calls for reform of pensions system
Governor sees need for national consensus to secure sustainability of current system
Costa Rican central bank backs government’s external financing plans
Move would reduce pressure on domestic rates and boost economic growth, it says
Fiscal policy needed to tackle next crisis – Riksbank research
Low interest rates limits monetary policy influence, but opens the door to sustainable fiscal stimulus
Book notes: The third pillar, by Raghuram Rajan
Rajan sets out an ambitious – but deliberately non-radical – manifesto for reform at the local level
SBP hikes to 12.25% as inflationary risks grow
Government has been borrowing heavily from central bank and rupee has weakened
Weakened international co-operation could hinder crisis response – Bernanke
Christina Romer ‘loses sleep at night’ about internationals' readiness to fight a future crisis
Norway’s revised budget adds to pressure for tightening
Analysts think higher public spending could reinforce Norges Bank’s tightening cycle
Cooling economic activity in China paves way for more stimulus
Policy-makers may turn to fiscal stimulus rather than monetary easing
Swedish governor calls for comprehensive reforms to housing market
Higher house prices boost private debt, which now poses greatest financial risk, adds the governor
Poloz tells lawmakers carbon tax is likely inflationary
The politically controversial policy could have a mixed impact on growth, the governor says
A dangerous moment for the Reserve Bank of India
The RBI’s high-profile skirmishes with India’s populist government in 2018 threatened the central bank’s mission. Central bankers worldwide should take note
Eurozone needs central stabilisation fund to secure fiscal stability – ECB research
Unlike other monetary unions, the region’s federal budget plays a very limited role
IMF cuts growth forecasts for most economies
Japan and China are the only two to receive a more optimistic outlook from the IMF; global economy at a “delicate moment”, says Gita Gopinath
RBI cuts main rate again as growth fears deepen
Central bank revises down growth and inflation forecasts as election nears
Pakistan starting to recover from imbalances – SBP
Central bank hikes policy rate while highlighting some signs of improvement in the external balance; IMF mission chief meets authorities for initial programme talks
Eurozone governments must pursue fiscal expansion, Praet says
ECB chief economist says monetary policy cannot support recovery without support
Borio questions Larry Summers on ‘secular stagnation’
Two teams of economists present fresh evidence for divergent views of low real rates
Namibian government proposes to cap its borrowing from central bank
Finance minister asks for five-fold increase to central bank’s capital to pay for new responsibilities