Inflation
Long-term data can shed light on current inflation – NBER paper
Authors suggest first half of 20th century has clearer parallel to current inflation than 1970s
Central banks should ‘overestimate’ inflation persistence, says economist
Academic argues central banks should act as if exogenous shocks are likely to be persistent
The PBoC, real estate debt and financial stability in China
Central bank policy-makers are restricted in terms of capacity and space by their efforts to manage the nation’s property bubble amid declining growth
ECB rate hikes could damage climate change policies, paper finds
Researchers claim tighter financing conditions will hamper transition to capital-intensive green technologies
Rates round-up: Argentina adds 950bp to main rate
Central banks in Argentina, Peru, Rwanda, Serbia and Uganda tighten policy
Firms use supply chains to predict inflation – IMF paper
Authors find expectation formation diverges from rational expectations hypothesis
Bank of Mexico increases interest rates by 75 basis points
Central bank once more revises up inflation projections
UN warns against rapid adoption of crypto in developing nations
Tax evasion depletes resources for development, report finds
Uncertainty over ECB’s TPI muddies monetary and fiscal impact
Analysts say anti-fragmentation tool exposes long-standing flaws in EU fiscal framework
Zimbabwe officials considering currency board
MPC member says arrangement would require $700 million in reserves
Prominent economists call on US to unfreeze Afghan reserves
Stiglitz among those calling on US to ease humanitarian crisis despite Taliban rule
Kuwait raises policy rate 25bp
Central bank usually times increases to match FOMC meetings
Monetary policy ‘increasingly synchronised’, say IMF officials
Very few central banks have bucked the global trend since the start of the pandemic
PBoC vows not to flood economy with liquidity
Chinese central bank warns of rising structural inflation pressures
Record-high inflation piles pressure on Norges Bank
Norwegian central bank expected to increase rates by 50 basis points on August 18
El Salvador abolishes statistics agency
Central bank will absorb body that calculates inflation
Thailand raises rates for first time since 2018
Bank of Thailand signals more “gradual and measured” rate increases to come
Moldova raises rates as inflation hits 31.8%
Policy interest rate reaches new record high
How central bank mistakes after 2019 led to inflation
Central banks must acknowledge their own mistakes and outline concrete steps to restore the public’s confidence in their ability to ensure price stability, write Graeme Wheeler and Bryce Wilkinson*
Israeli reserves increase on higher equity prices
Portfolio increases by over $4 billion in July to $197.8 billion
Romania continues tightening cycle with 75bp rise
Eighth consecutive increase comes as headline inflation passes 15%
South Sudan president fires sixth governor
Moses Makur Deng ends seven-month stint as currency depreciates
The case for restoring the role of monetary aggregates
Tim Congdon argues that a surge in money supply in response to Covid-19 sparked heightened inflation and central banks need to refocus their attention on monetary aggregates
ECB uses bond reinvestments to support Italy and Spain
Central bank rebalanced its bond holdings in June and July away from France, Germany and the Netherlands