Fiscal policy
Pakistan raises rates 100bp amid reserves crisis
Reserves now only enough to cover about three weeks of imports
S&P worried about Israeli plans to use SWF funds, says report
Finance ministry says no bill has been prepared
Federal Reserve saw fall in profits in 2022
Central bank remitted $76 billion to US Treasury, but has been in red since September
Bank of Canada may be set for billions of losses
Think-tank warns losses could pose reputational risk for central bank
Zambian central bank needs more safeguards, IMF says
Fund says central bank’s independence is still under threat despite reforms
Romania may be at end of tightening cycle
Inflation resumed upward march in November, but major bank says cycle has ended
Argentina activates Chinese swap lines
Central bank says move will boost reserves but observer says it is unlikely to strengthen peso
Bahamas central bank backs law change on SDRs
Governor supports move to allow finance ministry to use SDRs but opposition condemns proposal
Tunisian governor warns country needs IMF deal after latest hike
Country faces rising inflation as foreign exchange dwindles and political crisis continues
Israel raises rates to highest level since 2008
Governor warns new government that markets expect fiscal responsibility
Iran appoints new governor amid protests and plummeting rial
Farzin becomes fourth head of central bank in less than two years
Sri Lanka cabinet approves draft of new central bank law
Measure will end CBSL role in buying government bonds
IMF backs $3.1 billion loan for Egypt
Conditions include locking in the floating exchange rate
Paraguayan ex-governor says central bank loans are illegal
Congress votes for interest-free advances amid dispute among ruling party’s factions
IMF approves long-term resilience loan for Rwanda
Fund urges “more decisive monetary tightening”
IMF and Ghana reach initial agreement on $3 billion loan
Stricken country preparing domestic debt restructuring
Brazil and Paraguay hold rates, while Curaçao opts for rise
Inflation has almost halved in Brazil in six months since April, but board says fiscal outlook uncertain
Dollarisation did not prevent monetary financing, paper finds
IMF researchers show how Ecuador created central bank money without its own currency
Book notes: A monetary and fiscal history of the United States, 1961–2021, by Alan Blinder
The book’s breakthrough is its infusion of the history of fiscal policy into a theoretical framework traditionally focused on monetary instruments. It is a splendid and thrilling read
The ECB’s collateral conundrum
A lack of high-quality collateral in the eurozone has resulted in money market rates lagging ECB policy rates, hampering monetary policy transmission
Ghana hikes rates again as inflation passes 40%
Governor says country faces “huge financing gap” as government uses central bank credit
BoE not briefed on disastrous ‘mini-budget’, Bailey says
Governor says absence of independent assessment of tax package made it very hard to assess
Chile’s Costa on tackling inflation, forex interventions and nowcasting
The Central Bank of Chile governor speaks about stubbornly high prices, Fed policy spillovers, reserve buffers, retail CBDC and the need to address unconscious bias
Carstens wins major Spanish economics prize
King of Spain award praises BIS president’s work in Mexico and globally