Monetary policy
Riksbank’s negative rates successfully passed through to economy – research
Findings contrast with recent work by Larry Summers and co-authors
IMF expects global growth to slow further in 2019
“Significantly higher” and “increasingly intertwined” risks weigh on global growth, Lagarde says
Reserve manager of the year: Bank of Mexico
The Latin American central bank has adopted a forward-looking asset allocation strategy as well as embracing absolute return approaches
BoJ must normalise policy to cope with ageing population – former official
Japanese firms face labour shortages and limited ability to raise prices- Shirai
Indonesia keeps rates unchanged
Governor signals benchmark rate is “almost at its peak”
Central bank’s headline inflation projections improve significantly
Central bank’s headline inflation projections improve significantly over near term, but inflation still forecast to climb to 5.3%
ECB revamps code of conduct for high-level officials
National governors and SSM board members must adhere to policy communication rules
CBRT holds main rate steady at 24%
Turkish central bank keeps rates high as signs emerge of a “rebalancing trend” in the economy
Sarb’s mandate will not change, president Ramaphosa says
Officials move to clarify manifesto claim following backlash
Adoption of a privately-issued digital currency can reduce social welfare, researchers find
Optimal policy can be achieved through central bank digital currency, authors say
BIS’s Borio calls on economists to take money more seriously
Money is too often explored in isolation, or ignored completely, the BIS economist says
Fed can afford to be patient as global growth forecasts decline, says Clarida
Fed vice-chair says labour market is at full employment and inflation remains on target
PBoC’s Yi defends central bank’s easing measures
Cut in reserve requirements calibrated so as not to undermine deleveraging, governor says
Riksbank’s Jansson warned of inflation disappointment at hike meeting
Deputy governor voted against the policy rate hike in December
NY Fed’s Williams advocates change to inflation-targeting framework
But Don Kohn prefers to keep status quo with some supplementary policies
Book notes: EuroTragedy, by Ashoka Mody
The former International Monetary Fund insider elegantly tells the story of the creation of the currency that has defied economics, warning that it could get “worse, much worse”
Israel’s Yaron adopts cautious stance in first meeting
Central bank on hold as downside risks threaten the outlook
Powell sends cautious message to markets
Bernanke says he and Yellen “very lucky” to have served under presidents who respected Fed independence; Powell pledges not to step down
US payrolls data proves strong
Non-farm payrolls beat expectations and wage growth rises, despite fears of a global slowdown
Icelandic central bank questions reform proposals
Publishing rate paths may not work as intended, external MPC members warn
Fed independence under renewed fire from Trump
President unlikely to be able to fire Jerome Powell but could exert pressure in other ways, say observers
Low rates can encourage risk-taking – BoE paper
Author models the risk-taking channel of monetary policy alongside a “bankruptcy channel”
2018: The year in review
The past year marked a return to instability, but also saw some innovations among central banks
The PBoC’s efforts to solve the ‘impossible trinity’
Chinese central bank intervenes to manage offshore renminbi rate; uses swaps, rather than selling reserves in latest currency interventions