Inflation targeting
MMT and the challenge of fiscal monetary co-ordination
Sayuri Shirai contrasts modern monetary theory with regimes of monetary or fiscal dominance
Monetary Policy Benchmarks 2021 report – seeking a strong anchor
Insights into the organisation and resourcing of monetary policy, decision-making, tools, transparency and market operations
Central banks set monetary policy around eight times a year
African central banks reported setting monetary policy less frequently than peers
Canadian governor outlines next phase of policy
Governor says Bank of Canada will keep asset holdings unchanged in “reinvestment phase”
Sarb governor urges shift to narrow inflation target
Kganyago says it was a “mistake” to maintain a target band for so long
Danish central bank positive on ECB strategy review
New 2% symmetric target could boost inflation, report says; climate change may impact price and financial stability
Moldova makes second rate hike in two months
Central bank cites “persistent inflationary process” as it raises policy rate 100 basis points
Zambia holds rates despite double-digit inflation
Governor says inflation will decelerate faster than expected despite being three times target rate
Eurozone inflation reaches 10-year high at 3%
Rapid rise in energy prices was main driver, according to Eurostat estimates
Canada records surprise GDP decline
Second-quarter figures show 0.3% contraction, which may affect taper and monetary policy
Majority of central banks use corridors to set market rates
A handful use floors due to unconventional policy, and some use other methods
Too great expectations from the ECB’s strategy review
The review process represents operational best practice, but will fail to unify the Governing Council
Powell says taper test has been met ‘with regard to inflation’
Fed chair tells Jackson Hole conference that slowing QE this year “could be appropriate”
ECB council divided on forward guidance, minutes show
Some senior officials argued new formulation risks inflation overshooting
Brazil’s supreme court upholds central bank autonomy law
Opposition parties had challenged constitutionality on procedural grounds
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
Hungarian central bank raises rates for third month running
MPC cautions inflationary pressures remain and forecasts return to target in mid-2022
Paraguay raises rates as start of ‘gradual normalisation’
Country is latest in Latin America to tighten policy, alongside Brazil, Uruguay and Peru
German inflation could be over 2% until mid-2022 – Bundesbank
Inflation is likely to drop from early 2022 as base effects end, central bank forecasts
Canada records highest inflation since 2011
House prices help drive figures up, as inflation becomes campaign issue in election season
RBA governor dismisses calls for policy review
Opposition politician criticises central bank for frequently missing inflation target
Uruguay raises policy rate 50 basis points
Move is first time central bank has raised rates since readopting a policy rate last year
No one monetary policy target optimal – Bank of Canada paper
Flexible inflation targeting one of best performers in “horse race” with other options